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Are you a landlord or a tenant facing a Rental Dispute in Dubai? Do you know that Dubai has established a robust system for managing rental disputes through the Rental Disputes Settlement Centre (RDSC)? This centre aims to streamline & expedite the resolution of rental conflicts, ensuring social & economic stability within the real estate sector.
Legal Framework and Establishment
Decree No. (26) of 2013 was issued by His Highness Mohammed bin Rashid Al Maktoum. It draws on several foundational laws, including:
Federal Law No. (5) of 1985 (Civil Code of the UAE)
Federal Law No. (11) of 1992 (Civil Procedures Code)
Various local laws and decrees related to real estate, judicial processes, and rental disputes.
Key Provisions
Article 3 says that the primary objective here is to create a specialised judicial system for rental dispute in Dubai, ensuring quick and efficient resolution processes to support sustainable development & stability in Dubai’s rental market.
Article 6 sheds light ok jurisdiction. The RDSC has exclusive jurisdiction over:
1. Rental disputes between landlords and tenants, including in free zones.
2. Appeals from decisions subject to appeal.
3. Enforcement of RDSC decisions and judgments.
It excludes disputes in free zones with their own tribunals, disputes from lease finance contracts, and long-term lease disputes governed by Law No. (7) of 2006.
Under article 7, RDSC comprises a judicial sector and an administrative sector. The judicial sector includes:
Mediation and Conciliation Directorate
First Instance Division
Appellate Division
Judgment Enforcement Directorate
The administrative sector provides technical and administrative support.
Procedure for Resolving Rental Disputes at the Rental Disputes Settlement Centre in Dubai
Step-by-Step Guide
1. Registration of Dispute:
• The first step is to register the rental dispute with the Rental Disputes Settlement Centre (RDSC). Both landlords and tenants can initiate this process.
• A fee is charged for the registration, determined by the relevant resolution of the Chairman of the Executive Council.
2. Mediation and Conciliation (Article 10):
• Once registered, the dispute is initially referred to the Mediation and Conciliation Directorate.
• This Directorate aims to amicably settle disputes within 15 days from the date the parties first appear. This period can be extended by the supervising judge.
• When the parties settle, they document it in a settlement agreement, which the supervising judge signs and approves, giving it the force of a writ of execution.
3. First Instance Division (Articles 13 & 16):
If mediation fails, the First Instance Division handles the dispute, with tribunals formed by experienced judges and legal experts.
The tribunals must determine the dispute within 30 days from the date of referral, extendable as per the rules and procedures.
Judgments issued in disputes with a value less than AED 100,000 are final and not subject to appeal, except under specific conditions such as jurisdictional errors or concealment of evidence.
4. Appeals (Articles 14, 17 & 18):
Judgments from the First Instance Division can be appealed to the Appellate Division within 15 days from the date of the hearing or from the date of service of judgment for absent parties.
To appeal, the appellant must deposit half of the judgment amount unless otherwise decided by the chairman of the RDSC.
The Appellate Division comprises tribunals formed by judges and experts. Their judgments are final and not subject to any form of appeal.
5. Enforcement of Judgments (Article 21):
• The Judgment Enforcement Directorate of the RDSC enforces final and irrevocable judgments.
• The RDSC can seek assistance from the Enforcement Department of the Dubai Courts to enforce its judgments.
6. Fees and Costs (Article 23):
• The Chairman of the Executive Council determines the fees for registering claims and other services provided by the RDSC through a resolution.
• Local Order No. (1) of 2004 currently stipulates the existing fees, which will continue to apply until new resolutions are issued.
Conclusion
The establishment of the Rental Dispute in Dubai Settlement Centre marks a significant advancement in the real estate sector, providing a streamlined, efficient, and specialized mechanism for resolving disputes.
For further guidance on rental disputes and related legal matters, contact experienced Dubai lawyers or reputable law firms in Dubai. They will navigate the complexities of the RDSC and protect your rights.