Dubai's Rental Disputes Center (RDC) has set a new precedent allowing a lease agreement to be annulled even before it takes effect, if deception during the negotiation process is proven. The ruling is based on Articles 170, 171 and 173 of the UAE Civil Transactions Law.
The case involved a landlord who, after signing a lease with a company, discovered the tenant had prior unpaid rental obligations, court judgments and even an arrest warrant linked to rental disputes. The landlord sought to cancel the agreement before handing over the property. The request was initially dismissed, but on appeal to the RDC's General Authority, the contract was annulled and both parties were restored to their pre-contract positions.
The ruling confirms that legal protections remain available even after a lease is signed but before it is implemented, provided the relevant legal conditions are met. The RDC has urged landlords and tenants alike to obtain a free Rental Good Conduct Certificate before signing any agreement, a document that allows either party to review the other's rental-related judicial history and assess potential risks in advance.
The decision comes as Dubai's rental market continues to see strong demand, with legal experts noting that such precedents could further strengthen confidence in the emirate's residential and commercial leasing sector.