# Tenancy Contract issue



## Amar Kumar Padhi (Mar 4, 2010)

Hi Folks,
I am having an issue with my landlord. I do not want to renew my Dubai flat contract and informed the landlord about one month before the expiry of the contract. As per the landlord I need to inform my intention of non-renewal before 90 days of contract expiry. Unable to do so forces me to sign the contact for another year! I checked the contract and did find a clause that states this. Does this mean that I do not have any other option but to renew? Aren't there other options such as pay for the remaining 2 months and opt out of the contract? I have already signed a contract for another flat. 

All comments welcome.


----------



## rsinner (Feb 3, 2009)

Amar Kumar Padhi said:


> Hi Folks,
> I am having an issue with my landlord. I do not want to renew my Dubai flat contract and informed the landlord about one month before the expiry of the contract. As per the landlord I need to inform my intention of non-renewal before 90 days of contract expiry. Unable to do so forces me to sign the contact for another year! I checked the contract and did find a clause that states this. Does this mean that I do not have any other option but to renew? Aren't there other options such as pay for the remaining 2 months and opt out of the contract? I have already signed a contract for another flat.
> 
> All comments welcome.


I am presuming you haven't given him the cheques for the next year. Try to talk your way out of it, and if he continues being unreasonable then spirit away. In any case if the "notice" is verbal none of you have any proof
However, his legal recourse will be entirely different if he is an Emirati


----------



## marc (Mar 10, 2008)

Can you get a hold of him. 

You dont have to do anything if you dont want to, just move out...


----------



## Jedi Master (Feb 26, 2010)

Amar Kumar Padhi said:


> Hi Folks,
> I am having an issue with my landlord. I do not want to renew my Dubai flat contract and informed the landlord about one month before the expiry of the contract. As per the landlord I need to inform my intention of non-renewal before 90 days of contract expiry. Unable to do so forces me to sign the contact for another year! I checked the contract and did find a clause that states this. Does this mean that I do not have any other option but to renew? Aren't there other options such as pay for the remaining 2 months and opt out of the contract? I have already signed a contract for another flat.
> 
> All comments welcome.


This is a lesson for everyone of us that we must read properly before signing anything. I hope you'd find a solution soon bro.


----------



## Jynxgirl (Nov 27, 2009)

Good luck. Please post back of the resolution so some lonely soul who ends up in your situation can see how you fared.


----------



## SBP (Jan 4, 2010)

Does your agreement not have similar clause to;

Is it easy to terminate a rental agreement? 

--------------------------------------------------------------------------------

Is it easy to terminate a rental agreement? My agreement says:

"In the event of termination of the Contract by the Tenant, the Tenant agrees to pay a two-months rent as penalty to the Landlord; or alternatively continue paying rent until a replacement Tenant is found. In the latter case, no penalty will be required to be paid by the Tenant."


----------



## Amar Kumar Padhi (Mar 4, 2010)

SBP said:


> Does your agreement not have similar clause to;
> 
> "In the event of termination of the Contract by the Tenant, the Tenant agrees to pay a two-months rent as penalty to the Landlord; or alternatively continue paying rent until a replacement Tenant is found. In the latter case, no penalty will be required to be paid by the Tenant."



Unfortunately no. I have been discussing with some legal advisors and also made a call to RERA. Based on all the inputs I have received, I am not signing the new contract. I will keep you guys posted on what happens. Thanks all.


----------



## SBP (Jan 4, 2010)

Amar Kumar Padhi said:


> Unfortunately no. I have been discussing with some legal advisors and also made a call to RERA. Based on all the inputs I have received, I am not signing the new contract. I will keep you guys posted on what happens. Thanks all.


good luck


----------



## oh! (Feb 24, 2010)

Ok first of all...these clauses normally apply on EARLY TERMINATION...i.e. if you wish to terminate the contract or move out before the original term of the contract matures. This has been happening quite a lot and tenants use this to negotiate a lower rent with their landlord...so most new tenants will find similar clauses in their contract.

How long was your contract for...did you utilize the entire tenure because if you have, then the contract is over, going even a day over it requires a new contract...unless there is automatic renewal. Check for that in your contract. I really don't think any landlord would be stupid enough to put an auto renewal clause in the contract because at the beginning of a new contractual year, a new payment/cheque(s) is due.


----------



## Amar Kumar Padhi (Mar 4, 2010)

oh! said:


> How long was your contract for...did you utilize the entire tenure because if you have, then the contract is over, going even a day over it requires a new contract...unless there is automatic renewal.


Yes I will be utilizing the entire tenure and have cleared all the payments. I will be leaving the premises well before the expiry. There is no auto-renewal clause in the contract. The only bugging clause is this one -

"If the Tenant is not desirous of renewing the lease contract, he shall advise the landlord in writing at least (90) days prior to the expiry date of the lease contract, otherwise he shall be bound to pay the rent value in full."

Thanks!


----------



## SBP (Jan 4, 2010)

Amar Kumar Padhi said:


> Yes I will be utilizing the entire tenure and have cleared all the payments. I will be leaving the premises well before the expiry. There is no auto-renewal clause in the contract. The only bugging clause is this one -
> 
> "If the Tenant is not desirous of renewing the lease contract, he shall advise the landlord in writing at least (90) days prior to the expiry date of the lease contract, otherwise he shall be bound to pay the rent value in full."
> 
> Thanks!


Does that not mean you pay the 3 months rent for the notice period?


----------



## Amar Kumar Padhi (Mar 4, 2010)

Yes that is what I did argue at the landlord office, but they kept on saying that it means one full year. If the situation aggravates, then RERA will stand as the final authority to sort this out. I am being patient at this stage and awaiting the landlords final decision. After that, I will take a call whether to file a dispute with RERA.


----------



## oh! (Feb 24, 2010)

SBP said:


> Does that not mean you pay the 3 months rent for the notice period?


I hope so...otherwise I would seriously suggest you go and wring the neck of the agent who got you into this sneaky little contract...I mean majority will not be sure 90 days before hand whether they want to stick around or shift the house...I mean what about those poor people who lose their job and have just one month before their residency expires..and they don't get a job and eventually have to pack up and leave...this clause is a sure recipe for disaster...for the tenant. 

Sorry that this learning for all comes at your expense but get hold of your lawyers try to work out a way that this payment penalty thingy only applies to the 90 days. Or else you can simply try to appeal to the softer side of your landlord. You can even offer to renew the contract...for 60 more days, if he disagrees, then he is rejecting contract renewal...well I hope it is this easy.

Best of luck anyways, hope you come out of it unscathed and this forum be attending a nice house warming at your new place


----------



## Amar Kumar Padhi (Mar 4, 2010)

SBP, yes what you mentioned is exactly the point I raised at the landlord's office, but they kept on saying that the clause means for the full year and not just 90 days. As per legal discussions, I came to know that all such disputes can only be settled by RERA. This will require either parties to file a case with them.



oh! said:


> ...otherwise I would seriously suggest you go and wring the neck of the agent who got you into this sneaky little contract...I mean majority will not be sure 90 days before hand whether they want to stick around or shift the house...even offer to renew the contract...for 60 more days, if he disagrees, then he is rejecting contract renewal...


Oh!, yes you are right. I did offer to pay for additional two months to get out of the lease but the landlord's office is deaf on this. I even paid a personal visit to them to discuss other alternatives. Only thing they keep saying - renew for one year no opiton. As mentioned by other members on this forum, they are just not ready to talk it out and arrive at an amicable solution.


I am being patient at this stage and awaiting a response from the landlord. I have gone ahead and given them in writing that I will not be renewing the contract and am vacating the premises before the expiry date. Based on their feedback, I will take a call whether to knock on RERA doors. Will keep you guys posted. Thanks.


----------

