Dubai’s Rental Disputes Center (RDC) has clarified an important protection for parties entering rental agreements: where legally significant deception is established, a lease may be annulled even before the tenancy begins.

What the decision means for Dubai leases

The RDC’s General Authority considered a dispute in which a landlord learned troubling information about a prospective corporate tenant after a lease agreement had been signed. The ruling confirms that a contract is not necessarily beyond challenge simply because the parties have signed it. The facts must support a legal claim of deception, and the relevant requirements of the UAE Civil Transactions Law must be met.

Why the rental agreement was challenged

According to reporting by Khaleej Times, the landlord discovered that the company had been involved in earlier rental disputes and judgments concerning unpaid amounts on properties taken for subletting. Concerned about the company’s ability to meet its obligations, the landlord sought to annul the agreement before handing over the property.

Although the initial claim was rejected, the matter was reviewed by the RDC’s General Authority. It determined that the circumstances met the legal grounds for deception under Articles 170, 171 and 173 of the Civil Transactions Law and ordered that the agreement be annulled, with the parties returned to their previous positions.

How to check a rental counterparty

Landlords and tenants can carry out additional checks before committing. As reported, the RDC’s free Rental Good Conduct Certificate, accessible through the Dubai REST app, provides information on rental-related judicial cases and judgments. It can help flag issues that warrant further discussion or professional advice.

Practical steps before signing

• Confirm the identity and legal capacity of the other party.

• Review rental terms, payment commitments and any subletting arrangements in writing.

• Keep records of representations and supporting documents exchanged during negotiations.

• Seek qualified legal guidance promptly if a material misrepresentation emerges.

Important: Annulment is not automatic whenever a disagreement arises. Whether deception justifies relief depends on the evidence, the applicable law and the competent authority’s determination.

Source: Reporting by Hind Aldah, Khaleej Times, published 29 October 2026. Read the original report.