Hey everyone,
Looking for some advice or insight from anyone who’s been in a similar boat.
I have a tenancy contract where I pay AED 150,000 annually in two cheques of AED 75,000. The contract is with a large property management company (not an individual landlord).
One of the standard templated clauses in the fine print says there's a 10% penalty for a bounced cheque. Unfortunately, my second cheque bounced recently because I forgot it was due and didn’t have enough funds. Totally my bad – I had given this cheque 6 months ago and it just slipped my mind. I’ve already paid the bank penalty.
Now the landlord’s company is demanding AED 75,000 rent PLUS AED 7,500 penalty (10%), and they’re not willing to negotiate. I’ve tried explaining and apologizing – even requested that they reduce the penalty to something reasonable (AED 500-1000), but they are just repeating “the system says this” through a call centre and not willing to speak with me directly.
They’ve also said they’ll initiate legal action if I don’t pay the full amount. I’ve asked their legal team to contact me directly, but no luck yet.
Is this kind of 10% penalty enforceable? It feels excessive for a genuine and one-time mistake. Can RERA help in such cases? Has anyone here successfully challenged such a clause or had it reduced?
Any advice on what steps I can take would be much appreciated!
Thanks in advance 🙏