KHALEEJ TIMES, Sunday, Sep 12, 2021 | Safar 5, 1443
Can I get a refund on advance rent payment if I end tenancy contract early?
Emirates:
Question: I was staying in a hotel apartment in Sharjah on a yearly contract. I
had paid the year's rent in advance, on the understanding that I would be
refunded the remaining amount if I did not stay in the room for the whole year.
I vacated the room in May and am yet to receive over Dh7,800 that's due to me.
Please advise how I can get the amount.
Answer: Pursuant
to your queries, as you were residing in a rented hotel apartment in Sharjah,
the provisions of Sharjah Law No. 2 of 2007 on Regulating the Relationship
Between Landlord and Tenant in the Emirate of Sharjah (Sharjah Rental Law) and
the Resolution of the Executive Council Number (2) of 2010 of Sharjah (Amended
Sharjah Rental Law) are applicable.
It should be noted that in Sharjah, the tenant may not terminate the rent
agreement with the landlord and the tenancy contract will continue till the end
of the contract period. In the event of early termination of the contract by a
tenant, he/she is obligated to compensate the landlord. This is in accordance
with Article 22 of the Amended Sharjah Rental Law which states:
"Without prejudice to Article 22 of the Sharjah Rental Law:
1. If the lease is for a fixed period, the tenant may ask for termination of
such lease, before the expiration of its period if it is proven by the tenant
that there are unexpected force majeure events that make the execution
impossible;
2. The committee, may if it is content with such force majeure events, terminate
the contract by obligating the tenant to pay compensation to the landlord in an
amount not less than thirty percent (30%) of rental of the remaining period of
the lease contract unless otherwise agreed by parties;
3. The plaintiff shall pay the compensation set out in paragraph (1) above. The
committee shall not instruct to deliver the postdated cheques or advance rentals
to the tenant unless such tenant delivers the leased premises free from anything
and on the date determined by the committee;
4. If the landlord is the one who has asked to terminate the contract, then the
tenant will not be forced to return the leased premises until he receives the
compensation or obtains a sufficient security to be determined by the committee
taking into account the humanitarian conditions.
5. The lease contract terminates legally in case the plaintiff pays the full
compensation mentioned in paragraph (1) above unless otherwise settled by
parties. If the plaintiff fails to pay the compensation in a deadline, then the
committee shall reject the claim and oblige the plaintiff to pay the previous
rentals to the landlord unless they have been paid by the plaintiff through
cheques or rentals under the possession of the defendant (landlord); and
6. Provisions of this Resolution shall apply to all claims where no final
judgement has delivered to them on the date of issuance of this Resolution."
Based on the aforementioned provision of law, if you and your landlord have
agreed in the tenancy contract that advance rent will be refunded for the period
not used by you, then that amount must be refunded. However, if the same is not
in writing, you are obligated to compensate the landlord for early termination
of the rent contract. For more clarifications regarding the said matter it is
recommended that you approach the Rent Regulation Department located at the
Sharjah City Municipality.