Dubai Rental Disputes Center allows annulment of signed leases if deception is proven

Dubai's Rental Disputes Center (RDC) has established a judicial principle under which a landlord or tenant can ask to annul a signed lease, provided the tenancy has not yet started and deception is proven. Gulf News and Khaleej Times reported the ruling.

The principle came out of a dispute between a landlord and a company. Before handing over the property, the landlord learned that the company had earlier rental claims and judgments against it for unpaid sums. These related to properties it had rented in order to sublet them. The company's manager was also the subject of several arrest and bring-in orders in cases tied to rent obligations, bounced cheques and late payments. The RDC did not name the company.

The landlord sought annulment before the lease took effect. The claim was dismissed at first instance. On appeal, the RDC's General Authority found that the facts amounted to deception, citing the Civil Transactions Law, Articles 170, 171 and 173. It ordered the lease annulled and the parties returned to where they stood before signing.

The RDC said the decision confirms that legal safeguards can extend beyond the moment of signing, as long as the legal requirements are met. Simply changing one's mind is not grounds for annulment. Gulf News noted that a record of past rental disputes does not by itself mean a party acted dishonestly, because deception has to be established under the law.

The RDC also pointed to its Rental Good Conduct Certificate, available in the Dubai REST app. It shows whether the other party has a history of rental court cases or judgments. The service is free.

For anyone about to sign a new lease, the certificate allows a check on the other side's rental litigation record before becoming bound by the contract. Gulf News said this is particularly relevant for landlords renting to companies, including those planning to sublet. Those searching for a home can start with long-term rental listings.