500,000 AED fine or jail time for tenants who write rent cheques to the wrong party


Tenants issuing cheques in the names of anyone other than the property owner might face a big fine and possibly a jail sentence.

The Dubai Land Department (DLD) has taken some hard measures in order to ensure the rights of both property owners and tenants.

Law No (2) of 2003 which regulates the lease of property in the emirate mandates that all cheques must be written out to the property owners, and not property management companies. 

The circular came after a number of reports from property owners about management companies taking rental cheques in their own names and failing to pay the landlords on time. 

The Land Department issues guidelines for all property management companies to follow: 

  • All staff must be licenced, and all properties managed must be registered with Ejari. 
  • Management companies are not allowed to receive any rental cheques or payments in the name of the company. Cheques and payments must be in the name of the landlord. 
  • Any party which does not comply to the regulations set by the Dubai Land Department will be subjected a fine not exceeding 500,000 AED, and possibly a jail sentence.

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