Offer And Deposit To Resolve A Dispute Between Landlords And Tenants

Intro

By filing an “Offer and Deposit” motion with the Dubai Land Department (DLD), you can contest a rent increase if your landlord increases it above the rental index cap. 

The tenant may deposit it through DLD by making an online “offer and deposit” motion per the terms of the prior rental agreement if the landlord refuses to accept it. After a court hearing at DLD’s Rental Dispute Settlement Centre (RDSC), if you prevail, DLD will pay your landlord’s rent.

You can, thus, contact DLD and use the “offer and deposit” service if you disagree with your landlord’s rent increase and he won’t accept the rent you are currently paying.

The Landlord Must Give A 90-Day Notice Before Increasing the Rent.

First and foremost, at least 90 days before the lease’s expiration, the landlord must provide you with information about any rent increase.

Unless otherwise agreed by the parties, a minimum of 90 days before the lease’s expiration date is required for the landlord to provide the tenant notice of his desire to alter any of the lease’s terms or increase the rent.

What Does An “Offer and Deposit” Motion Mean?

Under a legal motion known as “Offer and Deposit,” the tenant may deposit the rent by the terms of the prior rental agreement using postdated checks. The number of checks must also follow the previous rental agreement’s requirements.

The RDSC in Dubai has introduced the “Offer & Deposit” option, which enables the tenant to apply with the Judge of Urgent Matters to compel the landlord to sign a new lease on the same terms as the old one if the parties cannot agree to a rent increase.

‘Offer and Deposit’ Procedure

1. Check to See If the Increase Is Permitted.

When your lease is up for renewal, and your landlord has informed you that your rent will go up, you should check the Real Estate Regulatory Agency’s (RERA) rental index to determine if the rise is within the calculator’s tolerances.

2. Emailing Your Landlord Should Be Done.

You must email your landlord and tell them that you will only pay the amount specified in the lease agreement if the rent rise exceeds the maximum permitted by the rental index.

3. Sort Your Documents.

All the paperwork needed to apply for the service must be in your possession before starting the “offer and deposit” process. The following papers must accompany the tenant’s motion:

• The old lease.
• The tenant’s new lease.
• The keys to the property and the new lease checks.
• The parties’ correspondence reiterates the landlord’s viewpoint (if any).
• It’s important to remember that all paperwork must be filed in Arabic or be legally translated into Arabic.

4. Bring Out An “Offer and Deposit” Motion.

Through DLD, You have two options for paying the rent: by visiting a Real Estate Services Trustee in person or online by creating an account on the DLD website, dubailand.gov.ae.

Cost

The Online Services cost is as follows

• The “offer and deposit” charge is Dh50
• fast-track notification is Dh52.50.
• A Dh10 knowledge fee
• Innovation fee: Dh10 

Total: Dh122.50

Whereas if you use a Real Estate Services Trustees Center, the fees are Dh130.