A Detailed Guide to Transferring a Tenancy Contract in Dubai

If you live in Dubai or are thinking about renting a property, you might have heard of the term “tenancy transfer contract”.

Perhaps you’re thinking about taking over someone else’s lease, or you need to add or change your name on a current rental agreement, or maybe you’re renewing and want to switch to new terms.

No matter the situation you may find yourself in, it’s essential to know how tenancy transfers function in Dubai, what your rights and responsibilities are, and if transferring a tenancy contract is a better choice than just renewing or signing a new one (remember that not knowing is not an excuse in case you falter).

This guide will help you understand everything: the reasons for transferring, the legal steps involved, the costs, the advantages and disadvantages, other options to consider, and what factors can help you decide if transferring is the right choice for you.

Table of Contents

What Does It Mean to Transfer a Tenancy Contract in Dubai?

To understand what it means when people talk about transferring a tenancy contract, let us start by understanding what a tenancy contract in Dubai is.

In simple terms, a tenancy contract in Dubai is a lease agreement between a landlord and a tenant.

It is registered under a system called EJARI, which is managed by the Dubai Land Department.

In other words, transferring a tenancy contract means changing the current agreement so that a new tenant takes over from the existing one (or shares it with them), while the landlord stays the same.

In some cases, the landlord may change (which means that someone else is in control of the property).

What Would Make Someone Transfer a Tenancy Contract?

Here are a few typical situations:

The current tenant has to leave early, and another person is interested in taking over the rest of the lease.

A tenant wants to sublet or transfer their lease (if permitted) and have someone else take over their responsibilities.

A family member or roommate should be added or take on the role of the main tenant.

A lease is coming to an end, and the current tenant chooses to pass it on to someone new instead of renewing it themselves.

Main Advantages of Transferring a Tenancy Contract

There are a few reasons why transferring a tenancy contract in Dubai might be attractive:

Reduced Initial Expense

If the original tenant has paid a big part of the rent already (like with post-dated cheques) and you take over for just the remaining months, you might be able to start the contract with less money upfront than if you signed a brand new lease for the whole term.

Lower Chance of Rent Increase

If the contract you’re transferring is still active and the rent was set a while back, you could skip paying the higher market rate that would come with starting a new lease in today’s market. This is really useful when rents are going up.

Less Time Required

You might like a shorter lease instead of a full one-year commitment. In that case, you can move into the property for the rest of the contract.

To make it short, it means you wouldn’t have to commit to a one-year contract, which of course, will save you a significant amount of money.

Quick Move-In Choice

If the property is already occupied and ready, you might be able to move in faster than if you were waiting for a new lease to be negotiated, especially if the current tenant is moving out, the deposit is cleared, and the landlord is on board.

Possible Advantages in Negotiation

If you’re a new tenant, you can discuss better terms, like lowering the deposit, covering certain fees, or asking the landlord to handle maintenance, especially if you’re moving with the landlord’s approval and the market is good for tenants.

Legal Framework and Main Requirements to Transfer a Tenancy Contract in Dubai

Here’s a legal framework and main requirements:

Signing Up for Tenancy Agreements

In Dubai, it’s necessary to register tenancy contracts using the Ejari system. Even a transferred contract needs to be updated on the Ejari system to ensure the tenancy contract is valid and enforceable (in case of disputes).

Basic Rights of Tenants and Landlords

According to Law No. 26 of 2007 (which governs landlord-tenant relationships in Dubai), neither party can end a valid tenancy contract on their own unless specific legal conditions are met, which may entail both the landlord and tenant to be in unison so that there are and disputes.

If the property changes hands, the rental agreement stays in effect with the same terms.

The landlord needs to send a written notice by registered mail at least 90 days before the contract ends if they want to change the rent or end the tenancy.

Conditions for Transfer

The laws address general tenancy, but transferring the tenant’s name or assigning the lease relies on the landlord’s approval, the original tenancy agreement, and whether subletting or assignment is permitted in that agreement.

Lots of landlords or management companies ask for a formal “assignment of tenancy” form or some internal approval before they can register the change.

Ejari Update

After changing the tenant’s name, make sure to update the Ejari to show the new tenant’s information.

If you don’t do this, it might be hard to set up utilities like DEWA, or you could have a disagreement when the lease ends.

How to Transfer a Tenancy Contract in Dubai

This is how the process usually goes, along with some helpful tips and things to keep an eye on:

Get the Landlord’s Approval

The first step is to get the landlord’s okay. You will need them to agree to the change of tenant, whether that means replacing the old tenant or adding you together with them.

You might need to meet with the landlord or property manager and get a written confirmation.

Cross-check the Original Contract

Take a good look at the current tenancy agreement and check if there are any rules about transfer, and how much time is left on the lease.

Check if the rent has already been paid with post-dated cheques and see if you need to give new ones.

Make sure you agree to the terms of the current tenant

If you’re stepping in for someone who’s already renting, make sure to find out which deposit you can get back, what payments have already been made, how much rent is still owed, and if you’ll be taking on any of those responsibilities.

Create a Transfer Agreement

It’s a good idea to create a simple agreement between you, the current tenant, and the landlord.

This should include the transfer date, how to handle the deposit, the remaining lease term, and who is responsible for the rent.

Update the Ejari Contract

Go to a Real Estate Services Trustee Center or use the Ejari online portal to update the rental agreement with the new tenant’s information.

The documents you’ll need include: the original tenancy contract, the Emirates ID of the new tenant, and a power of attorney if it’s needed.

Cover Any Registration or Service Charges

You’ll need to pay a fee to register or update your tenancy contracts. The DLD’s published data states that it costs AED 100 to register a contract through the app, along with additional knowledge and innovation fees.

Update Your Utilities & DEWA Account

After you register your tenancy, make sure to transfer or update the electricity and water (DEWA) connection and any other utilities (like Du or Etisalat, gas, etc.) under your name.

If there are any unpaid bills by the previous tenant, make sure that it is sorted out (even before you settle in) to prevent any problems that may arise.

Secure Receipt & Contract Archive

Keep all copies of the updated tenancy contract, the Ejari registration certificate, receipts of payment, and any exchange of letters or emails confirming the transfer of your tenancy contract.

These will protect you at the end of the lease or if disputes arise.

Which Is Better: Transfer vs. New Tenancy Contract?

Now that you know how the transfer works, let’s look at whether a transfer is the better choice or if signing a brand new contract fits your needs better.

Option A: Transfer the Existing Contract

Advantages:

Rent may be lower than what is currently offered for new leases.

You will not need to start the entire lease negotiation over again.

Drawbacks:

The remaining time on your contract could be limited, so you might have to renew it soon.

You take on current obligations (checks, payments) and need to check the status of deposits.

The landlord can raise the rent when you renew your lease if the market has changed.

Some older contracts might have guaranteed problems (like maintenance and amenities) that a new contract would address.

Option B: Sign a New Tenancy Contract

Advantages:

A full term is usually 12 months or longer.

New terms, maybe a better deposit or cheque setup.

Chance to discuss better terms or a more favorable payment arrangement.

Drawbacks:

Rent is probably going up to match the current market rates.

There might be more negotiation, which could mean a longer wait before moving in.

If the market goes down, you might end up paying more than you need to.

How to Choose the Best Option for Tenancy Contract Transfer

If you’re looking for a temporary solution or come across a transfer that’s much cheaper than the usual rent, then transfer could be a good opportunity.

If you’re looking for stability throughout the entire term, with new lease terms and reduced inherited risk, a new contract might be the better choice.

If the remaining time on the transfer is quite short (like just a few months), you could find yourself renewing at a higher rent soon, so consider the overall cost carefully.

Look at the market: is the current rent significantly higher than the rent in the transferred contract? If that’s the case, transferring can save you money. If the rent is roughly equal, the advantage is smaller.

Assess the property’s condition: older agreements might show the property’s previous state; a new contract could indicate recent improvements.

Always check the landlord’s reputation, their history of service, and the state of the amenities. When a contract is transferred, you still have the same landlord and possibly the same conditions for services.

Key Questions to Consider Before Transferring or Signing a New Contract

Is the landlord officially approving the transfer in writing?

How many months are left on the current contract, and is it worth taking over the remaining term?

What post-dated cheques or payments has the current tenant made, and will you be taking those over or starting anew?

How much do I need to deposit? Will I get any part of the previous deposit back, or will you need to pay the full deposit again?

Are there any maintenance problems, service fees, or unpaid bills for the property?

Is the current contract registered correctly with Ejari? Is the registration certificate current?

When it’s time to renew, will the contract automatically adjust to the current market rate?

Have the utilities (like DEWA, etc.) been transferred? Do you have any big unpaid bills?

Can you sub-let or assign the contract?

Is the property in good shape? Are you going to take charge of the improvements?

How is the neighbourhood, landlord, building maintenance, and community overall?

If I’m signing a new lease, what will the total cost be for the entire term, including rent, deposit, agent fees, Ejari, and so on?

Have you gone through all the terms and conditions, like cancellation rights, renewal, and notice periods?

Common Mistakes to Avoid While Tenancy Contract Transfer

Some people think they can just take over a contract automatically, without needing the landlord’s approval or updating the Ejari. That could be dangerous.

Not checking the deposit history – You could end up paying rent or post-dated checks without knowing if the previous tenant’s deposit has been refunded or credited.

Not paying old bills – Unpaid bills from the previous tenant (like DEWA and service charges) can lead to delays in transferring or create liabilities.

Be careful with shorter lease terms. If you take over a lease with just a few months left, you might have to renegotiate for a higher rent soon. Make sure to consider the total cost of the remaining term and any potential renewal.

Not updating your Ejari can weaken your rights and make it harder to set up utilities.

Don’t underestimate the renewal rent. Even if you have a transferred contract, the landlord might increase the rent to match current market rates when you renew. It’s best to ask about this beforehand.

When making a payment, it’s important to have everything in writing. Make sure there’s a signed contract, and that it’s in the landlord’s name as shown on the title deed.

By avoiding these mistakes, your transfer or new tenancy will go more smoothly and avoid surprises down the road.

Practical Tips for a Smooth Transfer or Lease Signing

Request a walk-through inspection with the landlord or current tenant, and make sure to point out any damage or maintenance concerns.

When you can, opt for post-dated cheques instead of paying a large amount in cash; this is a usual practice in Dubai.

Make sure to receive and keep the Ejari registration certificate in a safe place.

Make sure to set up or transfer utilities like DEWA and internet before you move in.

Get to know the community fees and service charges for the building.

Make sure to have everything documented, any extra conditions, maintenance responsibilities, early exit terms, or rent adjustments.

Set aside money for the security deposit, and check what will happen to any leftover deposit from the previous tenant, if there is one.

Inquire about the renewal process and how the rent review works in the contract, so you have a clear idea of what to anticipate at the end of the term.

Let your landlord know about your move-in and ask for meter readings and condition records.

For transfers, please ask for the original contract, the landlord’s approval letter, and a signed assignment agreement. Please update the contract name to Ejari as soon as you can.

Is it possible to transfer a tenancy contract without getting the landlord’s approval?

No. You need the landlord’s approval for a proper transfer. If it’s missing, the contract might not be legally valid, and the Ejari registration could either fail or be considered invalid.

If I move into a transferred tenancy and the contract ends in two months, what will happen?

You’ll need to either talk to the landlord about renewing your lease (maybe at a higher rent) or find a new place to live. Make sure to look at the remaining term and renewal terms before you decide to commit.

If I take over a contract with some months left, do I have to pay the full annual rent?

No. You should only take over for the remaining months and pay the rent based on how many months are left, unless you come to a different agreement with the landlord and the previous tenant.

Is it possible for me to sublet the property after I take over the contract?

It really depends on the original agreement and whether the landlord agrees. Subletting without permission could violate your contract.

When can I move in after the transfer?

After getting the landlord’s approval, updating the contract, updating Ejari, and transferring the utilities, you can move in. The schedule might change based on how well things are organized.

Is it less expensive to transfer than to sign a new contract?

The true worth comes from looking at the rent you’ll pay (adjusted for the remaining time plus the renewal agreement) compared to what you’d spend on a new one-year lease. If there’s not much difference, signing a new one might give you better value.

Conclusion

Transferring a tenancy contract in Dubai can be a good decision, but it’s not an easy fix. It has its own challenges and possible risks that you need to handle with care.

It’s important to approach this like any big rental choice: do your research, know how much time is left on the lease, look into the rent and renewal details, get the right paperwork, and make sure everything is registered properly.

If you know how long you plan to stay, and feel okay with the property’s state and the landlord, then going in for a tenancy transfer can help you save money.

If you’re looking for a new beginning, a longer lease, and complete control right from the start, signing a new tenancy agreement could be the way to go.

No matter which way you go, be sure to have the facts, keep copies of all your documents, and know exactly what you’re getting into. This helps you progress with assurance and steer clear of unexpected issues later on.

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