Dubai's Rental Disputes Center has established a principle allowing landlords or tenants to seek annulment of a signed lease before it takes effect if they prove they were misled.
According to Gulf News — Business/Property, Dubai's Rental Disputes Center has established a new judicial principle: a landlord or tenant may ask to cancel a signed rental contract before the tenancy begins if they can prove they were deceived when entering the agreement. The Center said legal safeguards "may extend beyond the signing of a contract, provided the applicable legal requirements are met." The principle follows a case in which a landlord agreed to rent a property to a company, then found before handover that the company had faced court cases and judgments over unpaid rent on other properties it had leased for subletting. Several arrest and bring-in orders had also been issued against its manager in cases involving unpaid rent, bounced cheques and delayed payments. The landlord's request to cancel was initially rejected, but on appeal the General Authority of the Center found that the circumstances amounted to deception under the UAE Civil Transactions Law. It ruled that the lease must be annulled and the parties restored to their positions before signing. The ruling does not allow a party to walk away simply because they changed their mind: deception must be demonstrated and the legal requirements satisfied. Having previous rental disputes also does not automatically mean a party acted dishonestly. The report adds that the principle applies where the tenancy has not yet begun. The Center also points to its free Rental Good Conduct Certificate service, which lets landlords and tenants check whether the other party has been involved in rental-related court cases or judgments before signing. This is particularly relevant to owners who rent out property to companies, including those planning to sublet.