Under Article 7 of Dubai Law No. 26 of 2007, a valid lease cannot be ended during its term by the landlord or the tenant acting alone. It ends early only by agreement or on a ground the law allows. The often-quoted "two months' rent" penalty is not in the law or in the standard terms of the unified Ejari contract. It applies only if your contract or a signed addendum says so. If you and the landlord cannot agree, the Rental Disputes Center (RDC) decides.
Who this guide is for
This guide is for tenants in mainland Dubai who need to leave before the contract ends, for example after a job change or a move abroad. It may also help landlords who receive an early exit request.
It is based on Dubai Law No. 26 of 2007, as amended by Law No. 33 of 2008. Some free zones, such as the DIFC, have their own leasing rules. Other emirates have different laws.
Is the two-month penalty a law?
No. Article 7 says a valid lease may not be terminated during its term by one party's will, only by mutual consent or under the law. The Dubai Land Department (DLD) FAQ explains it the same way: termination needs either the consent of both parties or one of the eviction grounds listed in the tenancy law.
The unified Ejari tenancy contract has 14 standard terms. None of them sets an early termination fee. Parties can add "Additional Terms", and many contracts use that space for a break clause, often with a notice period and a fee. That fee is a contract term. Standard term 12 adds that an additional condition will not be considered if it conflicts with the law.
So the real question is what your signed documents say. We found no official source that sets a standard early exit figure for Dubai.
What are my options without a break clause?
| Option | What it involves | Basis |
|---|---|---|
| Agree an exit with the landlord | A signed agreement on the end date, any amount payable, cheques, deposit and Ejari | Article 7 (mutual consent) |
| Transfer or sublet | Only with the landlord's written approval | Article 24; unified contract term 2 |
| Use a break clause | Follow its notice and fee exactly | Your contract's Additional Terms |
| Ask the RDC to end the lease | A claim to terminate a lease in force | RDC fee schedule; Civil Transactions Law Article 738 |
| Leave at expiry instead | Tell the landlord in writing in good time | Article 6; your contract |
On leaving at expiry: under Article 6, if you stay on after the term ends and the landlord does not object, the lease renews for the same term or one year, whichever is shorter. The original Article 14 required 90 days' notice of non-renewal. The amended text refers only to changing the terms. Check your contract for its own notice clause.
As of September 2026, the RDC lists the fee for a claim to terminate a lease in force as 3.5% of the annual rent, with a minimum of AED 500 and a maximum of AED 20,000, plus small service fees. See how to file at the RDC.
What about job loss or other unforeseen events?
The new UAE Civil Transactions Law (Federal Decree-Law No. 25 of 2025, in force from 1 June 2026) allows either party to ask to end a lease because of an unforeseen excuse relating to them (Article 738). The party who ends it must then make good the damage this causes the other party, within the limits recognised by custom.
In 2020, the DLD reported an RDC case under the similar article of the old civil code. A tenant whose employer ended their job because of COVID-19 produced a signed and stamped employer letter. The RDC ended the lease from the date the judgment became final, and ordered the landlord to return the cheques, or their amounts if cashed. That was one case on its facts. How Article 738 applies alongside the Dubai tenancy law is for the RDC to decide in each file.
Negotiation letter checklist
Keep the letter short, polite and dated. Include:
- Your name, the property, the Ejari number and the contract dates
- The reason you need to leave, with proof if you are willing to share it
- The date you propose to hand over the keys
- What you offer, for example a sum, help finding a new tenant, or flexible viewings
- Which post-dated cheques should be returned or cancelled
- How the security deposit will be settled
- Who cancels the Ejari, and when
- A request for the agreement in writing, signed by the landlord or the registered agent
- A reply deadline
Step by step
- Read your contract. Check the Additional Terms and any addendum for a break clause, notice period or fee.
- Work out your dates. Note the contract end date and the date you want to leave. Use the legal deadline organiser.
- Write to the landlord. Use the checklist above and keep proof of sending.
- Get any deal signed. Oral promises are hard to prove.
- Keep paying rent until the agreed date. Stopping payment early can lead to a claim against you.
- Hand over properly. Do a joint inspection and get written proof that the landlord took the property back. The RDC FAQ warns that without proof of return, the lease may be treated as continuing.
- Cancel the Ejari. The DLD "Cancel Tenancy Contract" service is free online and AED 40 plus VAT at a service centre. For a contract that is still active, the service centre route asks for a letter from the owner requesting cancellation.
- Close the money side. Collect returned cheques and the deposit. If the deposit is withheld, see security deposit not returned.
- Use the RDC if talks fail. Start with its amicable settlement service or a claim.
Documents checklist
- Tenancy contract, Additional Terms and any addendum
- Ejari certificate
- Emirates ID
- Copies of all rent cheques, with numbers and dates
- Deposit receipt
- Your exit letter and the landlord's replies
- Proof of the reason for leaving, such as an employer letter, if relevant
- Signed exit or settlement agreement
- Move-out inspection record, photos and key return note
- Final utility bills
The evidence checklist builder can help you index these.
Common mistakes
- Assuming two months is automatic. Check your contract. The law does not set that figure.
- Leaving without a signed agreement. You may still be treated as the tenant.
- Stopping cheques without agreement. A bounced cheque creates a separate problem. See bounced cheques and civil execution.
- Handing over keys with no record. Get written proof of return and a joint inspection.
- Subletting without written approval. This is a ground for eviction under Article 25.
- Forgetting the Ejari. An open contract stays on the system, and the DLD FAQ limits individuals to three residential Ejari contracts.
When to speak to a licensed lawyer
Consider licensed advice if the landlord claims a large sum for the remaining term, if your contract has an unclear break clause, if you want to rely on an unforeseen excuse, if cheques have already bounced, or if the lease is commercial. The free case check can help you set out the facts first, and CaseDaleel can introduce an independent licensed professional only if you choose.
Frequently asked questions
Is there a legal penalty for breaking a lease early in Dubai?
The tenancy law does not set a fixed penalty; any fee comes from your contract or what you agree with the landlord.
My contract has no break clause. Can I still leave?
You can leave by agreement with the landlord, or ask the RDC to end the lease, but you cannot end it alone under Article 7.
Can I leave early because I lost my job?
Article 738 of the Civil Transactions Law allows a request to end a lease for an unforeseen excuse, with compensation for the other party's loss; the RDC decides each case on its facts.
Will the landlord return my post-dated cheques?
Only if your agreement or a judgment says so, so list each cheque in any exit agreement.
Can I cancel the Ejari myself?
For an expired contract on a vacated property, yes; for a contract that is still active, the DLD service centre route asks for the owner's letter requesting cancellation.
Do I need to cancel the Ejari before filing at the RDC?
The RDC FAQ says an Ejari cancellation statement is not required to register a claim.
What if the tenant dies during the lease?
Under Article 27, the tenant's heirs may end the lease, effective 30 days after notifying the landlord or at the contract's expiry, whichever comes first.
Official sources
- Dubai Legislation Portal — Law No. 26 of 2007 (landlords and tenants)
- Dubai Land Department — Frequently asked questions
- Dubai Land Department — Cancel Tenancy Contract
- UAE Legislation — Federal Decree-Law No. 25 of 2025 issuing the Civil Transactions Law
- Dubai Land Department — Proof of dismissal due to COVID-19 a condition for lease termination
General information, not legal advice. CaseDaleel is not a law firm.