Timely revision of rental contracts triggered by pandemic can help both parties
Regulating the relationship between tenant and owner both in the commercial and residential sectors is of prime importance to support the economy
Dubai, UAE, September 1st, 2020: Abdulla Alawadi & Associates, one of UAE’s oldest and prestigious law firms, has been busy solving rental dispute cases during this current pandemic on behalf of its clients who are either tenants or property owners. The law firm believes that the timely revision of the rental contracts with the right level of understanding between the parties in question will help them mitigate the risks and challenges caused by the pandemic.
Covid-19pandemic had a massive impact on the rental sector, which eventually fell into the ‘force majeure’ category. The other challenge that emerged during this scenario was regulating the relationship between tenant and owner both in the commercial and residential sectors.
“We all are passing through a very unprecedented situation and none of us ever expected this to pose such a serious threat to our industries. The turbulence caused by the pandemic has impacted several businesses, individuals and owners across all industries. We have been closely following all businesses and legal developments and its subsequent impact on industries, thus preparing all stakeholders in the struggle against the pandemic. Based on several cases that we have solved on either side; we feel that both parties should understand each other’s situation and amicably move forward to tide over the current period. This can be done by revising the tenancy contract that is mutually a win-win situation for both the parties involved,” stated Adv. Abdulla Alawadi, Founder and Chairman of the law firm.
“While there were many challenges that surfaced due to Covid-19, the real and serious ones were basically the possibility of terminating the contractual relationship between the parties. This meant that companies and other commercial establishments would have to incur huge economic and financial losses.On the other hand, another serious concern was in the residential sector where individuals were terminated from their jobs and they were not able to pay their rents on time. Tenants affected by salary reductions and job cuts were looking to downsize and move to more affordable locations, added Adv. Abdulla Alawadi.
A recent judgment by Dubai's Rental Dispute Centre (RDC) confirmed that leases can be terminated in two cases, one of them is the occurrence of force majeure or emergency circumstances. This was a new rule that came into existence during the pandemic. Furthermore, there were several ‘cheque bounce’ cases that were recorded during that time and which further led to a disruptive imbalance in the contractual relationship between tenants and owners. Therefore, all existing rental dispute resolution centers in the UAE were required to form reconciliation committees to resolve such issues during the pandemic.
“During this phase, Abdulla Alawadi & Associates was able to extend its services and provided sound legal advice in all matters related to rental disputes, both to tenants and owners. The firm represented many institutions and individuals before the judicial authorities for rental disputes, across the country and helped them solve the situation. As per the corporate policy, the firm also provided both parties to the rental relationship a sound and documented advice as per the applicable laws, before proceeding with any judicial process,” stated Hesham El-Samra, Senior Associate – Litigation.
“Our firm is committed to support people facing any similar challenges, as an owner or a tenant, due to this unprecedented situation, and provide assistance inswiftly resolving the cases within this domain,” concluded Hesham./
About Abdulla Alawadi & Associates:
Founded by Adv. Abdulla Al Awadi in 1998, the firm has grown to become one of the most prestigious law firms in the region, excelling in litigation before UAE Courts. The firm has solved over 5000 plus cases over the last two decades is well represented by a team of lawyers with a wealth of industry experience across 13 industry sectors. For more information please log on to https://abdullaalawadi.com/.
Prem A. Ramachandran
White Water Public Relations