The Cancellation Of Rental Agreement is a critical document used in the United Arab Emirates when both parties mutually agree to terminate an existing lease before its natural expiration, or when documenting the formal end of a tenancy. This document is essential in the UAE real estate market, where rental relationships are strictly regulated by local laws and RERA guidelines. It provides legal protection for both landlords and tenants by clearly documenting the agreed terms of termination, including final settlements, property handover requirements, and mutual release from future obligations. The agreement must comply with UAE Federal Laws and local emirate-specific regulations, particularly in Dubai where it needs to align with Law No. 26 of 2007 and subsequent amendments. The document is typically registered with relevant authorities and may be required for Ejari cancellation processes.
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1. Parties: Identification of the Landlord and Tenant with their full legal names, Emirates ID numbers, and contact details
2. Background: Reference to the original tenancy agreement including its date, property details, and Ejari registration number
3. Definitions: Key terms used in the agreement including 'Termination Date', 'Property', 'Original Agreement', and 'Security Deposit'
4. Termination Agreement: Clear statement of mutual agreement to terminate the lease and the effective termination date
5. Final Settlement: Details of all financial settlements including rent, security deposit return, and any outstanding payments
6. Property Handover: Conditions for returning the property, including inspection requirements and key return process
7. Release and Waiver: Mutual release from future obligations and claims related to the tenancy
8. Governing Law: Confirmation that the agreement is governed by UAE laws and Dubai Municipality regulations
1. Utility Disconnection: Include when coordination of utility disconnection and final bill payments needs to be addressed
2. Maintenance Obligations: Include when specific repairs or restoration work needs to be completed before property handover
3. Early Termination Fees: Include when the cancellation occurs before the natural end of the lease term and penalties apply
4. Forwarding Address: Include when future correspondence or security deposit return requires tenant's new address
5. Third Party Notifications: Include when there are requirements to notify building management, RERA, or other authorities
1. Property Inspection Report: Checklist documenting the condition of the property at the time of cancellation
2. Settlement Statement: Detailed breakdown of all financial settlements including rent, deposits, and any deductions
3. Original Tenancy Agreement: Copy of the original rental agreement being cancelled
4. Ejari Cancellation Form: Official form for cancelling the Ejari registration
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