Think your rental contract is misleading? New Dubai ruling lets you cancel it before tenancy begins

Dubai: Are you being deceived by your lease agreement? Is it setting up expectations that are different from reality? If your contract can be proven as deceptive, you have a strong case for annulling your lease agreement, according to a new ruling by the Dubai Rental Disputes Centre (RDC). Here’s everything you need to know about the new ruling, and what it means for landlords and tenants. What is the new announcement by the RDC? The Dubai Rental Disputes Centre was established by Dubai Land Department (DLD) and serves as the city’s official judicial and dispute-resolution authority to handle conflicts between landlords and tenants. Learn how to file a complaint with the RDC. On October 29, it announced a new judicial principle, grounded in the provisions of the UAE Civil Transactions Law. Awatif Al Khouri, senior Emirati advocate and founder of Awatif Mohammad Shoqi Advocates and Legal Consultancy, explained: “The RDC has established a legal principle allowing a rental contract to be annulled before the tenancy begins, if deception is proven. Under the UAE Civil Transactions Law, specifically Articles 170 through 173, the legislation collectively emphasises that valid contracts fundamentally rely on truthful and mutual consent.” Awatif Al Khouri, senior Emirati advocate and founder of Dubai-based Awatif Mohammad Shoqi Advocates and Legal Consultancy. Picture credit: Supplied What does the ruling mean for landlords and tenants? The rule protects both landlord and tenant rights by ensuring transparency in rental transactions. Awatif said: “If one party uses deliberate misrepresentation or deception to induce the other into signing, the misled party is legally entitled to demand the annulment of the agreement.” Annulment is the legal process of declaring that a contract is officially deemed invalid. Either party – the landlord or the tenant – now have the right to annul the rental agreement, if they can prove the other party withheld or misrepresented information. How can a tenant or landlord prove the other party’s deception? The key is to ensure you can present documented evidence to the RDC that proves the other party deceived you. Awatif advised gathering documents, such as previous RDC judgments for unpaid rent, records of bounced cheques, or official notices related to rental defaults. She said the best way to protect yourself in such situations, is to ensure the tenancy agreement explicitly states that each party is responsible for their clear record. Awatif explained: “To practically secure this protection, it is advisable for landlords and tenants to include a specific representation clause in their standard tenancy addendum. For example, a tenant can explicitly declare in writing that they have no prior history of rental defaults, bounced cheques, or legal evictions. If this representation is later discovered to be false, it provides direct, documented proof of deception. This gives the landlord clear grounds to cancel the contract before the handover of the property.” Another way to assess whether the landlord or tenant you’re dealing with is legitimate, is by proactively verifying their background before signing. Awatif said: “The Dubai Rental Disputes Center provides a Rental Good Conduct Certificate. This service can be easily accessed through the Dubai Land Department website or the Dubai REST application. It enables landlords and tenants to review the official rental dispute and case history of the other party. Utilising this tool ensures complete transparency and protects individuals from entering into agreements based on misleading information.” Check out our guide on how to apply for a Rental Good Conduct Certificate here . Why did the RDC issue this ruling now? In a press release, the RDC released case details that prompted the introduction of the new principle. According to the RDC, a landlord in Dubai filed a complaint, following signing a lease agreement with a company. Before handing over the leased property, the landlord discovered that the company had been involved in previous rental claims and judgments arising from its failure to pay the amounts due for properties that it had rented for the purpose of subletting to third parties. It also emerged that several arrests and bring-in orders had been issued against the company’s manager in cases involving rental obligations, bounced cheques and delayed payments. These findings prompted the landlord to seek annulment of the agreement before its implementation began, out of concern that the tenant would fail to fulfil its contractual obligations. After the claim was dismissed at first instance, the appeal was considered by the RDC’s General Authority. Having examined the facts and determined their proper legal characterisation, the Authority concluded that the circumstances established in the case constituted deception under Articles 170, 171 and 173 of the Civil Transactions Law. Accordingly, it ruled that the lease agreement must be ann