The Rental Disputes Center, the judicial arm of the Dubai Land Department, has obligated a real estate property owner to refund the security deposit amount of AED 6,000, to a tenant, despite the expiry of the lease.
In its verdict perused by “Emarat Al-Youm”, the RDC confirmed that the landlord had delayed the tenant in refunding the security deposit, prompting the tenant to file a lawsuit against him.
The RDC stressed that the property owners or their representatives were obliged to refund the full amount of security deposit in the absence of repairing works requiring deductions from the amount of security deposits during the tenancy term.
Law No. (26) of 2007 amended by Law (33) of 2008 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai, stipulates, ‘when entering into a Lease Contract, a Landlord may collect from the Tenant a security deposit for the purpose of maintenance of the Real Property upon the expiry of the Lease Contract. The Landlord must refund this deposit or the balance thereof to the Tenant upon expiry of the Lease Contract.”
The RDC narrated that the subject of the claim referred to one of the lawsuits concerning the refund of security deposit. The plaintiff (tenant) requested a refund of the lease security deposit amount from the defendant (the owner), but the latter refused to refund the amount completely or the remaining thereof, despite the end of the leasehold relationship between them.
The RDC emphasised that both parties of the rental relationship have rights and obligations. For the tenant has to look after the leased premises, if he wishes for a full refund of the security amount deposited with the owner or property manager, except for wear and tear of the tenant's normal use. In the event of a dispute, the matter shall be brought to the Rental Disputes Center for the cost to be calculated pursuant to the Judge's discretion. The owner or the real estate manager must refund the full amount of the security deposit, provided that the leased premises is handed over in the same condition as received by the tenant.