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Abu Dhabi: Unable to recover full rental deposit due to change of ownership, what should I do?

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Dubai: While paying a deposit when signing a new tenancy agreement is standard practice in the UAE, what if you can’t get it back when you move out of your apartment or villa? A Gulf News reader from Abu Dhabi wrote to share his experience and ask about his rights.

He asked: “I was a tenant with a leading real estate agent for five years. For the first three years, the property was managed directly by the owner (individual) and later the ownership passed to a financial institution. A property management company paid AED 3,000 as a security deposit and later when it was transferred to new ownership I paid an additional AED 2,000 as a security deposit as it was a requirement.

“I held a Tawtheeq (registered tenancy agreement) which mentioned a total of Dh5,000 as a security deposit for the new title. However, after moving out of the apartment, they refused to pay the original Dh3,000 as that was what I paid To the former landlord, they will only refund Dh2,000.

“My question is – how can I get a full refund? I’ve been talking to the new owners and they advised me to go to the owners to get the Dh3,000 back. How did they get it after I vacated the property Bringing this up? I re-signed with them twice and they never brought it up.”

Gulf News questioned Ahmed Elnaggar, managing partner of law firm Elnaggar & Partners, who said: “In my opinion, the financial institution defaults not to refund the full security deposit to the tenant. By acquiring the property, it accepts all of its responsibility.

“Furthermore, as the tenancy contract was renewed twice, it was mentioned that the deposit was AED 5,000, the financial institution has confirmed that they are aware of the deposit and they should be refunded in full. The questioner should file a case with the relevant committee in Abu Dhabi to obtain the balance and claims and interest, as well as legal and court costs. Such amounts shall be paid by the financial institution at the conclusion of the case.”

As the tenancy contract was renewed twice, it mentioned that the deposit was AED 5,000, the financial institution has confirmed that the deposit is known and they should be refunded in full.

– Ahmed Elnaggar, Managing Partner, Elnaggar & Partners

How to file a rental dispute case in Abu Dhabi

The Rent Dispute Resolution Board is part of the Abu Dhabi Judiciary Department (ADJD) and in order to file a lawsuit you will need to visit the Enjaz Centre first. The Enjaz Center is ADJD’s client happiness center, offering services such as typing and filing cases, receiving court judgments in non-criminal cases, proving transactions, entering court service data, and notarizing public transactions.

If you want to file a rent dispute case as a tenant, you will need to come to the Centre with the following documents and details:

1. Register the lease contract (Tawtheeq)
2. Landlord name, mobile number and address.
3. Your Emirates ID and address details.

According to the ADJD Call Center— 02 6512222 – Once you have submitted the necessary documents and details for your complaint, you will receive the ADJD’s case number within 24 to 48 hours.

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