Understanding Article 26 of the Dubai Tenancy Law

A frequent misconception among property owners in Dubai is that once they have successfully evicted a tenant — whether for personal use or sale of the property — they are free to immediately re-lease the unit if their plans change.

This assumption is legally dangerous. Article 26 of Dubai’s Tenancy Law makes clear that eviction comes with strict restrictions on re-leasing. Failure to comply can expose landlords to serious financial liability in the form of compensation claims by former tenants.

Article 26 Explained

Under Law No. 26 of 2007 (as amended by Law No. 33 of 2008):

• If a landlord regains possession of a residential property for personal use, they cannot re-lease it to another tenant for two (2) years from the date of possession.
• For commercial property, the restriction extends to three (3) years.
• The Tribunal may only authorize a shorter period if compelling reasons are presented.

While the restriction is explicitly linked to personal use under Article 25(2)(c), the Rental Disputes Settlement Centre (RDSC) has extended this principle to cases involving eviction for sale. Where landlords claimed sale but then re-let the property shortly after eviction — often at a higher rent — the courts have treated this as bad faith and ordered significant compensation.

Recent RDSC Judgments: Heavy Penalties for Misuse

The following decisions illustrate the Tribunal’s strict stance:

• Case 1 – AED 180,000 Compensation
• The landlord evicted a tenant on grounds of personal use but re-let the property within the same year at a higher rent. The Tribunal awarded AED 180,000 covering relocation expenses and tenant improvements
• Case 2 – AED 200,000 Compensation
• A landlord served an eviction notice citing sale, but instead of selling, re-let the unit. The Tribunal ruled this as misuse of eviction grounds and ordered AED 200,000 in damages.
• Case 3 – AED 53,000 Compensation
• The landlord gave notice for sale, yet re-leased the property soon after eviction. The Tribunal awarded AED 53,000 to the tenant for rent differentials and moving/storage costs.

These rulings confirm that intent matters. The RDC will not tolerate landlords using eviction notices as a pretext to secure vacant possession for higher rents.

Key Risks for Landlords

• Compensation liability: Tenants may claim relocation costs, rent differentials, and damages.
• Loss of credibility: Bad-faith evictions undermine trust and can attract penalties.
• Timeline disruption: New leases may be invalidated if challenged.

Our Guidance at fäm Conveyancing

To protect yourself:

• Ensure your stated eviction reason aligns with your true intention.
• Do not re-let the property within the 2-year (residential) or 3-year (commercial) period unless the Tribunal authorizes it.
• If your intention changes post-eviction, seek legal advice before acting.
• Maintain full documentation to prove compliance in case of disputes.

Final Word

Eviction is not simply about regaining possession; it carries post-eviction obligations. Article 26 is designed to protect tenants and to prevent misuse of eviction rights.

At fäm Conveyancing, we help landlords structure their eviction strategy with clarity, compliance, and foresight — avoiding costly mistakes and protecting long-term ownership value.

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Disclaimer: This article is for general information only and does not constitute legal advice. Please consult a qualified legal advisor for advice tailored to your specific situation.