CONTEXT
In Dubai rental relationships, rent is most commonly paid by post-dated cheques. When a cheque is returned by the bank due to insufficient funds, the landlord has three procedurally distinct options for recovery, each with different legal functions, costs, timelines, and applicable scenarios.
This FAQ compares the three available procedures and identifies which option is most appropriate depending on the landlord's objectives and the circumstances of the default.
LEGAL BASIS
- Dubai Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants (Tenancy Law), as amended by Law No. 33 of 2008
- Dubai Decree No. 26 of 2013 Establishing the Rental Disputes Centre (RDC)
- Federal Decree-Law No. 50 of 2022 on the Commercial Transactions Law — Article 667 (dishonoured cheques as executory instruments)
- Federal Decree-Law No. 42 of 2022 on Civil Procedures — Articles 212, 233–238, 319, 324 (execution proceedings and enforcement measures)
Key principle: under Federal Decree-Law No. 50 of 2022, a cheque returned due to insufficient funds is treated as an executory instrument equiva...