The Rental Dispute Settlement Center, the judicial arm of the Dubai Land Department, obligated a property owner to return a rental insurance of 6000 dirhams in the interest of a tenant, despite the lease termination.
The center confirmed in its ruling – which “Emirates Today” reviewed – that the landlord delayed the tenant to return the security deposit, which prompted the tenant to file a lawsuit against him.
The Center stressed that the owner or his representative is obligated to return the full security amount in the absence of repairs that require deductions from the insurance amount, during the rental period.
“Dispute Resolution” pointed out that Law No. (26) of 2007 amended by Law (33) of 2008 regarding the regulation of the relationship between landlords and tenants of real estate in the Emirate of Dubai, stipulates that the lessor (the owner) upon concluding the lease contract must collect from the tenant a security to guarantee Maintenance of the property upon the end of the contract period, provided that the landlord is obligated to return this insurance, or what is left of it, to the tenant at the end of the contract.
The center indicated that the subject matter of the lawsuit refers to one of the lawsuits related to the return of the rental insurance, in which the plaintiff (the tenant) requested to return the amount of the rental security from the defendant (the owner), but the owner refused to return the amount or what was left of it, despite the end of the rental relationship between them.
The Center stressed that each of the parties to the rental relationship has rights and duties, and it is the duty of the tenant to preserve the leased property, in case he wishes to collect the entire security amount deposited with the owner or the property manager, except for what is reduced from it as a result of the tenant’s normal consumption, and in case the two parties differ, Therefore, the matter is referred to the “settlement of disputes”, as these deductions are calculated according to the judge’s discretion, and in return the owner or the property manager must refund the full security amounts, provided that the leased property is delivered in the state in which the tenant received it.
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