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Dubai Rental Disputes Centre Affirms Lease Annulment Before Move-In for Contract Misrepresentation

The Dubai Rental Disputes Centre (RDC) has established a judicial principle permitting landlords or tenants to annul a lease agreement before tenancy begins if deception is proven. The ruling relies on Articles 170 through 173 of the UAE Civil Transactions Law regarding truthful mutual consent. A legal expert noted that the decision restores contracting parties to their pre-signing status once deliberate misrepresentation is established.

Issuing authority
Dubai Rental Disputes Centre
Jurisdiction
Dubai, United Arab Emirates
Publication date
October 29, 2026
Effective date
October 29, 2026
Stage
Final rule
Official source
news.google.com
Illustration: A modern desk in a bright Dubai real estate office with a signed lease document, a set of apartment keys, and an architectural model of
Illustration

The Dubai Rental Disputes Centre (RDC), the judicial authority under the Dubai Land Department that resolves tenancy conflicts, announced a new judicial principle on October 29, 2026, allowing rental contracts to be annulled prior to property handover if deception is proven, Emirates 24|7 reported.

The ruling followed a case that was initially dismissed at first instance but overturned on appeal by the RDC's General Authority. The Authority determined that the circumstances met the criteria for deception under Articles 170, 171, and 173 of the UAE Civil Transactions Law, ruling that the agreement must be annulled and both parties restored to their pre-signing legal positions before tenancy implementation begins.

Awatif Al Khouri, senior Emirati advocate and founder of Awatif Mohammad Shoqi Advocates and Legal Consultancy, stated that the principle reinforces the legal requirement that valid contracts depend strictly on truthful and mutual consent. She noted that either the landlord or tenant is entitled to seek annulment if it is proven that the other party deliberately concealed or misrepresented critical information to induce signing.

To prevent disputes, the legal expert highlighted that parties can proactively verify counterparties before signing agreements, including utilizing the Rental Good Conduct Certificate issued by the RDC to review tenancy backgrounds.

Sources

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