When must a landlord in Dubai refund my security deposit?
Deposit clauses in the leases Fahm reads often leave the refund date, the deductions and the inspection to the landlord alone. The Dubai Tenancy Law ties the deposit to one purpose and one refund point; the Civil Transactions Law says who pays for maintenance in the first place.
What the deposit is for
Article 20 of the Dubai Tenancy Law lets the landlord take a security deposit when the lease is signed, to ensure the maintenance of the property at the end of the lease, on condition that the landlord undertakes to refund the deposit, or what remains of it, to the tenant when the lease expires. The deposit is therefore tied to maintenance at expiry and to a refund at expiry; a clause that uses it for other sums, or that sets no refund point, adds to what the article provides.
Who maintains the property
Under Article 705 of the Civil Transactions Law the lessor must keep the leased property fit for its intended use and carry out the necessary repairs during the term according to custom, unless otherwise agreed. If the lessor delays after notice, the lessee may get the court's leave to do the repairs and deduct the cost from the rent, and may carry out urgent or minor repairs without leave. A deposit clause that charges the tenant for repairs the lessor owes reverses this default; the article does allow the parties to agree otherwise, so the wording decides.
Standard-form leases
Where the lease is a form the tenant could not negotiate, Article 223 lets a court modify unfair conditions in a contract of adhesion or exempt the adhering party from them, and voids any agreement to the contrary. Deposit terms that let the landlord's own technician decide deductions with no timetable are the kind of condition this article is used for.
Questions
- What can a Dubai landlord use the security deposit for?
- To ensure maintenance of the property at the end of the lease; the landlord must undertake to refund the deposit or its remainder at expiry (Article 20).
- Who pays for repairs during the lease?
- The lessor, under Article 705 of the Civil Transactions Law, unless otherwise agreed; the lessee may do urgent or minor repairs and, with court leave, deduct the cost of overdue repairs from the rent.
- Can a court change a one-sided deposit clause?
- In a contract of adhesion, Article 223 lets the court modify unfair conditions or exempt the adhering party from them.
Articles on this page
- Article 20Dubai Tenancy LawCited in Fahm reportsThis article allows a landlord to take a security deposit from the tenant when the lease is signed.
- Article 705Civil Transactions LawCited in Fahm reportsThis article sets out the landlord's duty to maintain the leased property so that it stays fit for the use intended, and to carry out all necessary repairs during the lease term in line with custom, unless otherwise agreed.
- Article 223Civil Transactions LawCited in Fahm reportsThis article deals with unfair conditions in a contract of adhesion, meaning a contract whose terms one side effectively had to accept as offered.