
How to File a Mutual Early Exit Settlement for a Dubai Tenancy
File one signed Dubai settlement: the agreed end date, the money the parties wrote, each unused cheque, the deposit line, and who starts the Ejari cancellation.
Rental operations notes from the IziRento team. Not legal advice.
Key takeaways
A mutual early-exit settlement is the signed Dubai paper that ends one tenancy before the term: the agreed end date, the money the parties wrote, each unused cheque and who returns it, the deposit balance, and who starts the Ejari cancellation. Article 7 of Law No. 26 of 2007, not replaced in 2008, states no fee and bars one side from ending a valid lease alone. If the contract is silent, record only what these two parties wrote, including none.
File one signed settlement on this tenancy: the end date both sides agree, the money those two parties actually wrote, each unused cheque and who returns it, the deposit line, and the name of the person who starts the Ejari cancellation. Ejari is Dubai’s tenancy registration. A message that the tenant is leaving is not that paper. Neither side may end a valid lease alone during the term.
Article 7 of Law No. 26 of 2007 is the tenancy rule. Law No. 33 of 2008, issued in Dubai on 1 December 2008, replaced other articles and left Article 7 in place. A valid lease ends early by mutual consent or as that law provides. Article 7 states no fee and no number of days. The Dubai Land Department says that if the agreement has no early-termination provision, the period is a matter of discussion and agreement; otherwise both sides honour the term.
Disclaimer: IziRento is operations software, not legal advice. Local tenancy rules vary; check a qualified adviser for binding decisions.
One signed settlement for this exit
Article 7 does not require a notary, and it sets no fee. The signed settlement is still the paper that belongs with the contract. Replaced Article 4 of Law No. 33 of 2008 says that leases governed by the law, and any amendments, are registered with the Real Estate Regulatory Agency (RERA). A new end date is an amendment for that rule. A chat is not that record, and signing this page does not register the amendment.
The Ejari cancellation checklist is the document pack for the registration. The twelve-month notice is the recovery paper for own use, a sale, or works, served through a Notary Public or by registered mail. A mutual exit does not use that notice. The ninety-day letter is for a renewal or a rent amendment.
The deposit line here is the balance for this exit. The receipt register keeps the running balance. The handover inspection, the DEWA clearance, and the building move permit stay separate. DEWA is Dubai Electricity and Water Authority. Unused cheques for this exit are listed here; the full cheque schedule is the other register. Break wording that was already signed sits on the addendum.
Where the money line comes from
Read the signed lease and any addendum first. If that wording already states a figure or a notice method, copy it onto the settlement. If it states neither, the Land Department FAQ does not supply a fee or a number of days. Any notice period is then for the two parties to agree. The line is only what these two parties wrote, including none. If they do not agree, the term stands.
Some explainers treat one or two months’ rent, or 30 or 60 days, as a common clause. It is not a sum to add when this contract is silent. If the contract does not provide a pro-rata refund of unused rent, the settlement does not calculate one. A template that still cites the 1985 civil code is out of date. Federal Decree-Law No. 25 of 2025 repealed that code and took effect on 1 June 2026.
An English compilation of that decree, not the Official Gazette, says in Article 232 that a valid contract is not revoked, modified, or rescinded except by mutual consent, litigation, or a provision of law. It states no fee, and it does not replace Dubai’s Article 7.
The signed lease or addendum already states a figure or a notice method
- The figure already written in that clause
- The notice method already written in that clause
- Rent through the agreed end, if the lease already requires it
- Any amount the signed wording does not contain
- A refund date the signed wording does not contain
The contract states neither a figure nor a notice method
- Only the money these two parties wrote for this exit
- None, if that is what they agreed
- The original term, if they never agree to an early end
- A penalty the contract does not state
- A notice period or a pro-rata refund the contract does not provide
The lines once that source is chosen
The end date is a calendar day both sides agree. “Next month” in a message is not a date, and it is not the twelve months in the replaced Article 25(2). That article is a recovery notice served through a Notary Public or by registered mail. The money still due, and what each side releases, is whatever that source already states.
On the deposit line, record the amount held and the balance these parties agreed. Article 20, in the English text, says the landlord refunds the deposit or the remainder upon expiry of the lease. The Arabic text says the deposit, or what remains of it, is returned when the contract ends. Arabic prevails, and neither wording is a number of days. Article 21 says the tenant returns the property as it was received, except ordinary wear and tear or damage beyond the tenant’s control. A dispute goes to the tribunal.
What the signed page records
Agreed end date
Write the calendar day both sides agree.
Money still due, and the releases
Record rent through the agreed end if the lease already requires it, any further amount from the signed break wording or from what these two parties wrote (including none), and what each side releases.
Deposit line
Record the amount held and the balance these parties agreed to return. The line has no refund date.
Unused cheques
For each unused cheque, record the number, the date, the amount, and who returns it. State that those cheques will not be presented for rent after the agreed end.
Who starts the Ejari cancellation
Name the person who starts the Ejari cancellation, and write residential or commercial on that line. A residential contract can be cancelled during the term when both agree. A commercial contract, on the Land Department’s answer, is limited to the cases listed there: the lease has expired, the trade licence is cancelled, the company relocates, the trade licence is frozen, or the Rental Disputes Center orders cancellation. Both parties agreeing does not cancel a commercial contract.
Both signatures
Both parties sign, and the page is stored on the tenancy. If they cannot agree the date, the money, or the releases, stop.
An unused cheque is listed and handed back. The Central Bank cheque note, in force for these rules from 2 January 2022, says that issuing a cheque without sufficient funds is no longer the old criminal case, apart from cases the law still lists. That change is not a reason to leave the cheque off the page.
If the tenancy already has a sub-lease, Article 8 says that sub-lease ends when the head lease ends, unless the landlord expressly agrees to extend it. If this settlement names a replacement tenant, Article 24 on the same page still requires the landlord’s written consent unless the lease says otherwise. That consent is a line here, not a new lease.
If the two sides cannot agree, stop. Article 738 of the 2025 code, in that English compilation, lets either party request termination for a supervening excuse, with damage limited to what custom recognises. That path is not mutual consent, and custom does not fix an amount. A claim at the Rental Disputes Center is a separate matter.
The signature leaves the registration alone
The cancel service is separate from this page. While the contract is still active, that service asks for the owner’s letter. The signature here names who starts the request. It does not end the registration.
What this page does not do
Signing does not cancel the Ejari registration, serve the twelve-month notice, or set a refund day. It is not a dispute claim and not a hardship request. Both parties agreeing does not cancel a commercial tenancy. The unused cheque is listed and returned; the page does not instruct the bank to stop it.
The page is ready when it shows the end date, the money these parties wrote, including none, each unused cheque and who returns it, a line that the cheque will not be presented for rent after that date, the deposit balance, and who starts the Ejari cancellation. A fee, a penalty, or a deadline is on the page only when they already wrote it. If they have not agreed, stop. IziRento stores the signed file on the tenancy. It does not sign it, bank a cheque, or cancel Ejari.
Keep the signed settlement on the tenancy
The workspace holds this signed file with the tenancy. It does not negotiate the exit or cancel Ejari.
Start a workspaceFAQ
What if the contract has no break clause?
The term stands unless both sides agree something else. The settlement records that agreement, including no extra money. It does not invent a penalty.
Does this settlement replace the Ejari cancel file?
No. It names who starts the cancellation. The registration is a separate service, and an active contract is not cancelled by the signature alone. The document list belongs on the Ejari cancellation checklist.
Where do unused cheques get noted?
On this settlement: number, date, amount, and who returns each one, plus a line that those cheques will not be presented for rent after the agreed end. The running cheque schedule is the other register.
File one signed Dubai settlement: the agreed end date, the money the parties wrote, each unused cheque, the deposit line, and who starts the Ejari cancellation.
Sources
Next steps
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This material is for information only and is not legal advice.