Misuse Of Eviction For Sale In Dubai: Landlords’ Limits And Tenant Rights

By Author: Kaden Boriss
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Eviction on the ground of property sale is a narrowly defined exception under Article 25(2)(d) of Dubai Law No. 26 of 2007. Landlords can only evict tenants if there is a genuine intention to sell the property and the tenant is given at least 12 months’ notice through notary public or registered mail. Any other use of this eviction right, such as transferring property by gift or re-leasing immediately after eviction, is considered unlawful and constitutes abuse of rights under Article 106 of the UAE Civil Transactions Law.

Case Overview: Landlord Misuses Eviction for Sale
In a recent decision, the Dubai Rental Dispute Resolution Centre (RDSC) ruled in favour of a tenant who was wrongfully evicted. The landlord had issued a legal notice citing intended sale of the property. The tenant vacated the premises in good faith, but the property was not sold, instead ownership was transferred by gift and subsequently re-leased.

The court emphasised that eviction for sale must serve its legal purpose, and any diversion from this -- like re-leasing or gifting the property -- amounts to misuse of eviction rights.

Legal ...
... Principles Applied
The Committee applied established jurisprudence from Dubai courts, highlighting key points:

Eviction for sale is an exception, not a general right to terminate tenancy.

Abuse of rights occurs when a landlord exercises eviction to gain benefits unrelated to sale.

Tenants who vacate based on such notices suffer both material and moral damage.

Compensation may include financial losses (higher rent, brokerage, relocation) and psychological distress.

This aligns with Article 106 of the UAE Civil Transactions Law, which protects individuals against actions where rights are exercised unlawfully or in a way that causes disproportionate harm.

Tenant Compensation for Misuse of Eviction
The RDSC ruled that the tenant was entitled to full compensation, which covered:

Increased rent for alternative accommodation

Brokerage commissions and relocation costs

Moving expenses

Moral damages due to loss of stable housing and forced displacement

The court reiterated that compensation must be proportionate to the harm suffered, following UAE judicial standards.

Implications for Dubai Landlords
This ruling sends a clear message to Dubai landlords:

Eviction for sale cannot be used as a pretext to vacate tenants without selling.

Landlords must demonstrate a genuine intent to sell and follow through with the transaction

Failure to do so can lead to civil liability, including compensation for material and moral damages.

Courts will scrutinise the substantive intent behind eviction notices, not just their formal compliance.

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