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The Rental Disputes Settlement Center serves the purpose of resolving disputes between landlords and tenants. The RDSC holds the sole jurisdiction over all rental disputes and the same is outlined by Article 6 of Decree No. 26 of 13 concerning the Rent Disputes Settlement Center in Dubai. Moreover, the RDSC is responsible for appeals and the enforcement of the judgments under its jurisdiction. To ensure a smooth filing process at the RDSC, it is required to prepare all the legal documents in advance and attend all the necessary hearings
Required Documents:
Fees for Filing a Case at the RDSC
The fees required for registering a case in the RDSC are charged at 3.5% of the annual rent paid in favor of the leased premises and not less than AED 500 or more than AED 15,000 for the financial claims. In the event of eviction or tenancy-related contract renewal, the maximum fee that can be paid is AED 20,000. If a financial claim and eviction claim are being requested, the maximum fees will be AED 35,000. The claims made at the First Instance Circuit take anywhere between one to three months to pass judgment. However, an expert is called upon to study a case which can take up to nine months.
Procedure within RDSC.
The following highlights the process for filing a dispute within the RDSC:
Step 1: Cases are to be first filed with the Mediation and Conciliation Directorate to attempt to reach an amicable settlement within 15 days. If the resolution is successful, it is documented as a court order.
Step 2: If a settlement is not reached, the case will be moved to the First Instance Circuit. The RDSC judgment at the First Instance Circuit will be effective and executable unless an appeal is made. The appeal can be made for lease agreements with an annual rent value above AED 100,000. Once the judgment has been passed, 50% of the award must be paid by the appealing party for the appeal to be accepted.
Step 3: The judgment of the First Instance Circuit may be appealed within 15 calendar days from the date of issuance or the date the defendant was notified of the judgment; otherwise, the First Instance Circuit judgment becomes final and executable. If the First Instance Circuit judgment is appealed, litigation before the Appeal Circuit usually takes one to two months. The Appeal Circuit judgment is final and executable.
Step 4: After receiving the executable judgment, an execution file can be opened. A period of 15 days is provided for the defendant to comply with the judgment. The enforcement procedures of the judgment, including eviction procedures, will commence following the lapse of 15 days from the date the tenant is notified of the judgment.
The RDSC serves as an all-inclusive medium for resolving rental disputes between property owners and tenants in Dubai. By reviewing the jurisdiction and the various procedures involved in filing a case with the RDSC, parties can ensure that they undergo an unencumbered and smooth process which would increase the likelihood of a favorable outcome.
For any legal queries or information, contact ask@tlr.ae or call us on +971526443004
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