Dubai’s Rental Disputes Center (RDC) has established a new judicial principle confirming that landlords and tenants may seek to annul a tenancy contract, subject to legal requirements, even after it has been signed and before its implementation begins, if deception during the contracting process is proven.

The judicial principle is based on the provisions of the UAE Civil Transactions Law and confirms that legal protections for contracting parties may apply even after an agreement has been signed and before its implementation begins, provided the required conditions are met.

Dubai’s Rental Disputes Center is the specialised judicial authority responsible for resolving disputes between landlords and tenants in the emirate. Gulf Business +1

What does this decision mean for landlords and tenants?

Under this judicial principle, if one party to a tenancy contract is found to have deceived the other by concealing material information or providing misleading information, the affected party may seek to have the contract annulled, provided the legal requirements are met.

The decision is intended to protect the rights of landlords and tenants and increase transparency in rental transactions.

Annulment means that a contract is declared legally invalid. In the case that formed the basis of this decision, the judicial authority ordered the parties to be restored to the positions they held before the contract was signed.

The case that led to the decision

The judicial principle emerged from a case in which a landlord, after signing a tenancy contract with a company, discovered the tenant’s litigation history in cases involving unpaid rental obligations.

According to Dubai’s Rental Disputes Center, the landlord discovered before handing over the property that the tenant company had previously faced multiple lawsuits and court judgments for failing to pay amounts owed on properties it had leased for subletting to third parties.

It was also found that several arrest and summons orders had been issued against the company’s manager in cases involving rental obligations, bounced cheques and late payments.

Dubai’s Rental Disputes Center did not disclose the name of the company.

After learning of this history, the landlord, concerned that the tenant would fail to meet its contractual obligations, sought to annul the agreement before it took effect and before the property was handed over.

Initial rejection followed by annulment on appeal

The landlord’s application was rejected at the initial stage, but the case was subsequently reviewed on appeal by the General Assembly of Dubai’s Rental Disputes Center.

After examining the details of the case and determining the legal nature of the events, the panel found that the circumstances constituted deception in the formation of the contract under Articles 170, 171 and 173 of the UAE Civil Transactions Law.

The tenancy contract was therefore annulled, and the parties were ordered to be restored to the positions they held before it was signed.

The ruling confirms that when deception is proven and the legal requirements are met, a tenancy contract may be challenged and annulled even before its implementation begins. Al Khaleej +1

Free checks of landlords’ and tenants’ litigation records in Dubai

Dubai’s Rental Disputes Center said landlords and tenants may check the other party’s case history and court judgments relating to rental disputes before signing a contract.

The checks are available through the Rental Good Conduct Certificate service on the Dubai REST app and the official website of Dubai’s Rental Disputes Center.

The service allows users to review the other party’s rental-related litigation history in the centre’s system before accepting contractual obligations, enabling them to make a more informed decision about entering into an agreement.

The service is free, and the requested information is provided instantly. Rental Good Conduct Certificate +1

Focus on transparency and background checks before signing tenancy contracts

The new judicial principle established by Dubai’s Rental Disputes Center shows that signing a contract does not necessarily prevent a party from seeking its annulment when deception is proven, and that legal protections may apply before the contract’s implementation begins.

However, the mere existence of a dispute or the provision of inaccurate information does not automatically invalidate a contract. An annulment ruling depends on proof of deception and satisfaction of the conditions set out by law.

The decision also highlights the importance of checking the other party’s rental and litigation history, verifying the accuracy of the information provided and understanding legal obligations before signing a tenancy contract.