Host
Good to have you here. For Ali, just before we start, 4001 or the free app—text in now if you have a legal issue that is on your mind. A number of things that we wanted to talk to you about, but just before we go to a quick break in a second, here’s a story that is doing the rounds. I’m wondering, Ali, if you’re seeing this or observing fewer complaints over the number of checks, or if this is something you’re encountering in your day-to-day business. Reports in the newspapers state that more than a third of tenants are paying rent in four checks, but increasingly landlords are accepting rent in multiple checks—perhaps as many as twelve.
Ali Al-Assad
What we’ve noticed, as a trend in the market at the moment, is that when it’s hard for a landlord to find tenants, they tend to be more flexible, offering six or twelve checks. However, when the market is tighter and properties are in high demand, landlords usually prefer fewer checks—sometimes just one or two.
Host
That makes sense, doesn’t it?
Ali Al-Assad
The idea is simple—it’s about supply and demand. If you’re offering a property and you get an offer for, say, AED 100,000 for one check, and the tenant wants to pay in multiple checks, the landlord might agree but ask for AED 120,000 instead. So, when the number of checks increases, the overall rent might go up. But ultimately, it’s up to the parties to agree on the terms.
Host
Is there any legal provision around this, whether to pay by several checks or a single check?
Ali Al-Assad
The idea of payment by checks is a matter of practice, not law. If you go back to the rental laws of Dubai, they state that unless otherwise agreed, the rent should be paid in four equal payments. But there’s no mention of checks specifically—it’s just the way the practice has evolved here.
Host
Interesting. So, it’s more of a customary arrangement than a legal requirement.
Ali Al-Assad
Exactly. It’s become a norm, and checks are generally used as a security measure.
Host
The article we’re referencing quotes a source saying, “It’s good to see a shift in owners’ mentality.” They note that flexible payment terms, like spreading rent over 12 checks, signify a mature property market. But some listeners might be thinking, “I’ve not seen that happen in my case.”
Host
It’s worth noting, years ago, many expats had their rent paid by their employers, often in one or two checks. Now, more people are paying out of pocket and may not have a full year’s rent upfront, making multiple checks a practical solution. If you’ve got a good tenant, does it matter how many checks you receive?
Ali Al-Assad
It shouldn’t, as long as the payments are made. But for some landlords, multiple checks mean less security. In a market where checks are criminally enforceable, landlords feel safer with fewer checks. If a tenant defaults, landlords can take legal action swiftly.
Host
Shouldn’t this move to electronic payments? It feels like checks are outdated in many parts of the world.
Ali Al-Assad
It’s a fair point. Every time we discuss tenancy matters, the question arises: why are we still using checks when the rest of the world has moved on? The simple answer is that in the UAE, checks are a criminal matter. If a check bounces, the issuer faces jail time. This gives landlords significant leverage, making it a preferred system until an equally secure alternative emerges.
Host
That criminal liability creates accountability, but couldn’t the same apply to electronic payments?
Ali Al-Assad
In theory, yes. If we had a secure system for electronic payments that imposed similar repercussions for defaults, it could work. But until then, checks remain the default for securing payments.
Host
And landlords feel reassured by holding checks.
Ali Al-Assad
Precisely. With checks, landlords have a tool they can enforce without much hassle. Without a check, if a tenant defaults on payment, the landlord would need to pursue a civil case, which is slower and more complicated.
Host
What about scenarios where landlords ask for bank transfers instead?
Ali Al-Assad
It’s possible, but landlords often lack the same level of security with bank transfers as they do with checks. If the tenant doesn’t transfer the second payment on time, the landlord must chase them. With checks, the landlord can simply cash them on the agreed date.
Host
That makes sense. Let’s move on to some listener questions. If you have legal queries, text us on 4001 or the free app. Stay tuned for more with Ali Al-Assad from Yamalova & Plewka. Legal Hour continues on Drive Live.
Host
We’re back with the Legal Hour on Drive Live, and our guest Ali Al-Assad from Yamalova & Plewka is here to answer your legal questions. Let’s jump straight into the listener queries.
This one’s from a listener planning to buy a villa. They’ve asked, “Some houses I’m considering are tenanted, and the previous owners have already given the tenants a one-year eviction notice. When I become the new owner, do I need to give a fresh eviction notice, or does the existing one still stand?”
Ali Al-Assad
If there’s a proper legal notice already served by the current owner stating that the property is being sold, that notice remains valid. When you take over as the new owner, you don’t need to serve another notice. However, this assumes the notice clearly states the reason for eviction is the sale of the property, and that the 12-month notice period extends beyond the expiry of the tenancy contract.
Host
That’s good to know. Another question, this time from Kartik. “I’ve been asked to pay a contract renewal fee by my real estate agent for my tenancy contract. Is this legal?”
Ali Al-Assad
It depends on the contract you have with the agent. If they’re assisting with the renewal, it’s considered a service, and they may charge for it. However, if you have no agreement for such charges in writing, you’re not obligated to pay. Often, agents request fees in the hope tenants won’t challenge them. If you’re confident, you can simply refuse or negotiate a lower fee.
Host
Good advice. Next, we have a question about bounced checks. A listener asks, “Why is a bounced check treated as a criminal offense in the UAE, especially if someone loses their job and can’t pay? It’s not intentional.”
Ali Al-Assad
That’s a common question. In the UAE, checks are treated like currency. If you issue a check, it’s as though you’ve handed over cash. A bounced check is viewed similarly to issuing counterfeit money—it undermines trust in the financial system. Even if the default wasn’t intentional, the law sees the bounced check as a breach of that trust. This has been a long-standing practice here, providing security for transactions.
Host
Do you think that approach will ever change?
Ali Al-Assad
It’s possible. As we discussed earlier, transitioning to a secure electronic payment system could reduce reliance on checks. However, for now, checks remain a cornerstone of financial security in the UAE.
Host
Here’s an interesting one from a listener whose landlord isn’t responding. They’ve said, “I gave my landlord notice to vacate, but they live outside the UAE and haven’t replied to my calls or emails. What can I do?”
Ali Al-Assad
If your landlord isn’t responding, don’t hand the keys to the building’s security or management team—this is a common mistake. Instead, file an application with the Rental Dispute Center (RDC). Provide proof of your attempts to contact the landlord and evidence you’ve fulfilled your obligations, like clearing your DEWA bills. You can then deposit the keys with the RDC, which will issue a receipt confirming the handover. This receipt protects you from any further rent claims.
Host
What’s the fee for this process?
Ali Al-Assad
It’s approximately AED 170. It’s a small cost that can save you significant hassle down the line.
Host
That’s really useful information. Next, a listener asks, “My landlord is refusing to lower the rent even though similar properties in the area are cheaper. What are my options?”
Ali Al-Assad
Unfortunately, landlords aren’t legally required to reduce rent, even if market rates have dropped. However, you can try negotiating. Explain that you’re considering moving to a more competitively priced property, and see if the landlord is willing to meet you halfway. If they value you as a tenant, they might agree to a reduced rate to avoid losing you.
Host
Makes sense. Let’s take one more question. This listener says, “I’m in a three-year commercial contract with no early termination clause. How can I cancel the contract, and will there be penalties?”
Ali Al-Assad
Without an early termination clause, you’re bound by the contract unless the landlord agrees to release you. If they refuse and you proceed to terminate unilaterally, the landlord can claim damages for the remaining contract period. It’s best to negotiate and try to reach a mutual agreement. Sometimes offering to find a replacement tenant or paying a settlement fee can help.
Host
Great advice as always, Ali. Thanks for answering all these questions.
For our listeners, if you have more queries, text us at 4001 or use the free app. Ali Al-Assad from Yamalova & Plewka, always a pleasure having you on the show.
Ali Al-Assad
Thank you. It’s always great to be here.
Host
And that’s all for today’s Legal Hour on Drive Live. Stay tuned for more discussions on Dubai Eye 103.8.
