Breaking tenancy contract in Dubai is possible—if you follow the law. Whether you are a tenant planning an early exit or a landlord responding to one, this guide explains every step, cost, and legal reference you need to know under Law 26 of 2007, Law 33 of 2008, the UAE Civil Code, and current Real Estate Regulatory Agency (RERA) practice.
Can You Break a Tenancy Contract In Dubai Early?
Yes. Early termination is lawful when at least one of the following applies:
- The tenancy agreement includes an early-termination clause.
- Tenant and landlord sign a mutual termination in writing.
- UAE law grants a statutory right (for example, landlord breach).
- The Rental Dispute Centre (RDC) issues a judgment allowing termination.
Without a clause or written deal, compensation—usually one to three months’ rent—is the market norm.
UAE & RERA Laws For Breaking Tenancy Contract In Dubai
Law 26 of 2007 (amended by Law 33 of 2008) governs all Dubai landlord-tenant relations. Key points:
- Article 7 – A tenancy contract remains binding unless both parties agree to amend or cancel it.
- Article 25 – Lists the only reasons a landlord may lawfully end a lease early.
- UAE Civil Code, Article 267 – A contract cannot be unilaterally terminated unless the contract or the law allows it.
RERA Rules for Termination of Contract by Tenant
Under the Real Estate Act 2016 (RERA), tenants are granted a certain degree of protection and legal clarity when it comes to terminating rental agreements. If a tenant wishes to end the contract before the agreed-upon duration tenants can legally terminate a rental agreement by following the terms mentioned in the contract, usually by giving 30 to 90 days’ notice.
If a landlord imposes unfair penalties or withholds the security deposit without a valid reason, the tenant has the right to raise a grievance with the RERA authority. The law ensures transparency and fairness, protecting tenants from unfair penalties or wrongful withholding of security deposits. If any dispute arises, tenants can approach the RERA authority for resolution.
Knowing your rights under RERA can make the exit process smoother and legally sound.
Early Termination By Tenants
1- Common reasons for Breaking Tenancy Contract in Dubai
- Job loss or overseas relocation
- Family or medical emergencies
- Financial hardship
- Major change in personal circumstances
2- Notice period
Market practice: 60–90 days’ written notice sent by registered mail or email.
3- Compensation and Penalties For Breaking Tenancy Contract in Dubai
Scenario | Typical penalty |
No exit clause in contract | 1–3 months’ rent (negotiated) |
Clause specifies penalty | Follow the clause exactly |
Mutual agreement signed | Any figure both parties accept |
The landlord may deduct unpaid penalties from the security deposit after inspection.
Read Also : Can Landlord Evict Tenant? Eviction Laws and Tenant Rights
4- RERA guidance
RERA encourages parties to honour contracts but recognises written settlements. If no agreement is reached, either side may file at the Rental Dispute Center.
Early Termination Of Tenancy Contract In Dubai By Landlords
Under Article 25 of Law 33 / 2008, a landlord can end a lease early only if:
- The property will be demolished or fully reconstructed.
- Major renovations require the tenant to vacate.
- The landlord or a first-degree relative intends personal use.
A 12-month notice served by notary or registered mail is mandatory. If the landlord fails to use the property as declared, the tenant may claim damages.
Penalty for Early Termination of Tenancy Agreement in Dubai
- Early termination may incur penalties, usually between one to two months’ rent.
- Penalty terms depend on what is stated in the tenancy agreement’s early termination clause.
- Without an early termination clause, landlords may seek compensation for financial losses.
- Tenants should review and negotiate the contract before signing to avoid surprises.
- Providing proper notice (typically 60 to 90 days) can help reduce or avoid penalties.
- Open communication with the landlord is essential to reach amicable solutions.
In case of disputes, tenants can approach the Dubai Rental Dispute Settlement Centre for help.
What If Your Contract Has no Early-Exit Clause?
If the agreement is silent, the landlord has no duty to release the tenant. Tenant options for breaking tenancy in dubai:
- Negotiate a lump-sum settlement (one to three months’ rent).
- Propose a replacement tenant (subject to landlord approval).
File At The Dubai Rental Dispute Center For a Ruling
To file a claim at the Rental Dispute Center, submit:
●Ejari certificate and tenancy contract
●Copies of all notices and correspondence
●Emirates ID or passport copy
●Filing fee of 3.5–5 percent of annual rent (AED 500 minimum, AED 20,000 maximum)
RDC judgments are enforceable through Dubai Courts.
Also Read: How to Avoid Real Estate Frauds in Dubai
What is the process to end my tenancy contract early?
Ending your tenancy contract before the agreed period in Dubai can seem daunting—but if you follow a structured process, it becomes much easier and less stressful. Here are the steps of the process to end a tenancy contract early in Dubai:
Step 1 – Review Your Tenancy Contract
Before doing anything else, take out your tenancy agreement and read it thoroughly. Pay close attention to:
- Early Termination Clause: Does your contract mention penalties or conditions for ending the lease early?
- Notice Period: Most contracts require you to give 60 to 90 days’ notice before ending your lease.
- Hardship Clauses: These can protect you in unexpected circumstances (like job loss or illness).
If you’re unsure about any clause, consider getting advice from a legal expert or property lawyer in Dubai.
Step 2 – Speak with Your Landlord
Once you’ve reviewed your lease, the next step is to communicate directly with your landlord.
- Be honest and transparent about why you need to terminate early.
- Try to negotiate a fair solution—some landlords may agree to waive penalties or allow you to find a replacement tenant.
- If possible, get any agreement in writing to avoid misunderstandings later.
Tip: If you’re on good terms, your landlord may be more flexible.
Step 3 – Submit a Written Notice
Even if you’ve spoken to your landlord, you should still provide an official written notice of your intention to terminate.
Include in your notice:
- Your full name and property details.
- Reason for early termination.
- Proposed move-out date.
- Request for final inspection and deposit return.
- Delivery method: Email is typically accepted, but check your contract—it may require registered mail or hand delivery.
Step 4 – Settle Financial Obligations
Before you leave, make sure all financial dues are cleared:
- Pay any agreed early termination penalties (usually 1 to 2 months’ rent).
- Settle any outstanding rent or service charges.
- Clear your DEWA (Dubai Electricity and Water Authority) and other utility bills.
- Ask for receipts or confirmation of payment.
Pro tip: Never hand over the keys until you’ve resolved all financial matters and received proper documentation.
Step 5 – Arrange Final Inspection and Hand Over Keys
Schedule a final inspection with your landlord or real estate agent.
To prepare:
- Clean the property thoroughly.
- Repair minor damages (nail holes, broken fittings, etc.).
- Remove all your belongings.
- Take photos or videos as evidence of the property’s condition.
At the time of key handover:
- Return all keys, access cards, and remotes
- Request a written confirmation of the handover
- Ensure the security deposit refund process is initiated
By following these steps carefully, you’ll not only protect your legal rights but also leave on good terms—making future rentals in Dubai much easier to secure. Contact our property lawyers in Dubai to discuss your request and next steps.
Financial Considerations For Breaking Tenancy Contract in Dubai
Penalty calculation
Unless the contract states otherwise, the standard penalty is one to three months’ rent.
Security deposit
After inspection, the landlord may apply the deposit to unpaid rent or damages; any balance must be refunded.
Procedures For Amending a Tenancy Contract
●Add or revise an early-termination clause at renewal or before signing.
●Both parties must sign any amendment and register it in Ejari for legal validity.
Documents And Ejari Cancellation
All tenancy contracts in Dubai must be registered in Ejari. After early termination, either party can cancel Ejari through the Dubai REST app or an authorised typing center. Documents required:
●Emirates ID
●Passport and visa copy
●Signed tenancy contract
●Property title deed
●DEWA clearance (if requested)
Tips For Tenants Breaking Tenancy Contract in Dubai
Early
- Negotiate politely and keep everything in writing.
- Provide formal notice and keep proof of delivery.
- Do not abandon the unit; secure a signed settlement.
- Photograph the property at handover and obtain a clearance letter.
KEY TAKEAWAYS
- Review your contract first—clauses govern.
- Provide 60–90 days’ notice unless the clause specifies otherwise.
- Standard compensation is one to three months’ rent if no clause exists.
- If talks fail, file at the Rental Dispute Centre.
- Register all amendments or terminations with Ejari for legal standing.
Breaking tenancy contract in Dubai is feasible. Follow legal procedures, document every step, and seek professional advice when necessary.
Conclusion
For expert legal advice and assistance, Our experienced team of real estate lawyers in Dubai is here to help you and protect your rights. Contact us now!
FAQ About Breaking Tenancy Contract In Dubai
1-Can a tenant break a tenancy contract early in Dubai?
Yes. Penalties or negotiated fees apply unless the contract states otherwise.
2-What is the usual early-termination fee?
One to three months’ rent, unless a different amount is written in the contract.
3-Can a landlord evict a tenant early?
Only for the specific reasons in Article 25 and with 12 months’ notice.
4-How do I cancel Ejari?
Submit a cancellation request via the Dubai REST app or at a typing center once the property is vacated and dues are settled.
5-Should I hire a real estate lawyer for breaking tenancy contract?
Professional advice is recommended if penalties are significant or a dispute is likely.