property owner
property owner

The Rental Disputes Settlement Center, the judicial arm of Dubai Land Department, obligated a tenant to pay 567,000 dirhams, which he requested through the "performance order" mechanism.

 

The center detailed in the reasons for the ruling that the rental dispute occurred between a real estate company and a service center, as the tenant wrote to the owner a check amounting to 567 thousand dirhams as rental value, and it became clear that there was no balance for him, as the center obligated him to pay the amount within five days.

"Performance order"

The Rental Dispute Settlement Center in Dubai confirmed that it is permissible to claim the tenant for the value of rental arrears, by adopting the "performance order" mechanism in force in the Civil Procedures Law.

He explained that the "performance order" mechanism, which is concerned with financial claims, could prevent the landlord from entering into different levels of litigation, in addition to the possibility of obtaining rent arrears within days, indicating that it is a step indispensable for filing a case because of rent arrears.

He pointed out that the grace period for payment, according to that mechanism, would be within five days, provided that the returned checks were of more than 10,000 dirhams, pointing out that the mechanism depends on informing the lessee of the need for payment to avoid moving to the litigation stage.

The Center emphasized that the owner, with this mechanism, would have saved himself a lot of time, effort and money, especially since his use of this mechanism will save what is paid in exchange for the litigation fees specified in the law at 3.5% of the value of the financial claim, and the lifting of the "performance order" will result in The interest of the landlord in the event that the order reaches the actual dispute, if the tenant continues not to pay after activating the "performance order".

Performance Order procedures

The center indicated that the procedures of the "payment order" begin with opening a file, with bringing the required documents, which are: a passport, or the Emirates ID of the owner and the lessee, and a copy of the bounced check, along with a bank report on the reason for the check being returned.

He pointed out that the “payment order” exempts the owner from notifying the tenant via registered mail or the notary of his arrears, but it does not allow him to file an eviction lawsuit. Arrears from the rent without the use of notice whose steps take a lot of time and effort on the part of the landlord.

He indicated that this mechanism is in force in the Civil Procedures Law, as the bylaw of Federal Law No. (111) of 1992 regarding the Civil Procedures Law issued by Cabinet Resolution No. (57) of 2018 stipulates that it is an exception from the general rules in filing a case. Taking the path of the “performance order”, if the creditor’s right is established in writing, in what is required to accept the “performance order”, that the creditor assigns the debtor to fulfill within a period of at least five days by any of the means of advertising specified in the bylaw. The assignment of fulfillment is less than what is required in the petition for issuing a payment order, and for the creditor to submit an electronic or completed paper petition attached to the debt bond and evidence that the request for a “performance order” has been raised.