Dubai's Rental Disputes Centre (RDC) has confirmed that landlords and tenants can have a lease annulled before it takes effect if deception during the contracting process is proven. Arabian Business reported on the ruling on 29 October.
In the case, a landlord signed a contract with a company and then learned, before handing over the property, that the tenant had a history of rental disputes and judgments over unpaid amounts. The company rented homes in order to sublet them, and orders had been issued against its manager in cases involving rental obligations and bounced cheques. The first claim was dismissed, but on appeal the RDC's appellate body found deception under the UAE Civil Transactions Law. The lease was annulled and both parties were returned to their position before signing.
The RDC stresses that the ruling does not create a general right to cancel a lease because one party has changed its mind. The protection applies only when the legal conditions for deception are met.
The centre encourages landlords and tenants to use the free digital Rental Good Conduct Certificate before signing. It shows whether the other party has rental-related court cases or judgments. For owners letting a home in Dubai, it is a simple way to limit risk in advance.
