By Mohamed Ghanem
Lawyer I LLM I Lecturer I Speaker I DIAC Arbitrator
September 11, 2024
In a ruling issued yesterday by the Rental Dispute Center in Dubai, it was decided to terminate the lease contract due to heavy rainfall and flooding of the property, based on Article 738, Paragraph 1 of the Federal Civil Transactions Law, which stipulates that the tenant may terminate the contract if its execution causes clear harm to life or property. The reason for termination stated in the ruling reads as follows: “The leased property must be in a condition that poses a serious danger to the health of the tenant or those living with them, which, in the present case, is evidenced by the heavy rainfall and flooding.”
This ruling is consistent with the center’s established precedent, which, although Dubai’s rental laws do not allow for the unilateral termination of a lease during its term by either the landlord or tenant—Article 7 of Law No. 26 of 2007 regulating the relationship between landlords and tenants in Dubai stipulates that if the lease contract is valid, it cannot be terminated unilaterally by the landlord or tenant during its term except by mutual agreement or in accordance with the provisions of this law.
Therefore, without mutual consent or legal provisions, the contract cannot be terminated. However, the Rental Dispute Settlement Center has been creating exceptions to this general principle to achieve justice and balance in the rental relationship. Examples include the termination of lease contracts under the theory of extraordinary circumstances and unforeseen events, such as rulings issued by the center terminating lease contracts due to the dissolution of the tenant company or the COVID-19 pandemic. The latest application of this is the termination of a lease contract if its execution causes clear harm to life or property, as in the case of heavy rainfall and flooding. For more details please feel free to contact us at
Alghanem Legal Consultancy info@alghanemconsultancy.com 00971509292705 Rental Disputes Center (RDC) مركز فض المنازعات الإيجارية بدبي Dubai Real Estate fäm Properties Dubai IEREI. AE Scott Hutton Shahram Safai