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FAQ: Can a financial leasing (lease-to-own) contract be terminated, and property repossessed, when the lessee defaults on payments?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Answer: Yes. The law permits termination if the lessee commits a material breach, such as defaulting on rental installments.

Legal Basis:

Article 20 of Federal Decree-Law No. 32 of 2023 on Finance Lease

Relevant case law:

Case No. 26 of 2025 / Dubai Court / Real Estate