Security deposit when a property is sold in the UAE is one of the most practically urgent — and most poorly understood — questions in UAE tenant law. The scenario is more common than most people realise: a tenant is living in a property mid-lease, the landlord sells it, and suddenly the tenant is left wondering who owes them the deposit they paid months or years ago. Is it the original landlord who collected it? The new owner who just took title? Both? Neither, until the lease ends?
The legal answer is clear. The practical reality of enforcing it is where things get complicated — particularly when the original landlord has already spent the deposit, when the sale was completed without disclosing the deposit’s existence to the buyer, or when the new owner takes the position that the deposit is a matter between the tenant and the previous landlord. This 2026 guide explains the law, the chain of responsibility, what each party is legally obligated to do, and the exact complaint and enforcement pathways available to a tenant left holding a deposit dispute after a property changes hands.
The Foundational Principle: A Sale Does Not Extinguish the Tenancy Contract
Before addressing the deposit specifically, the broader legal context must be understood — because the deposit obligation flows directly from the status of the tenancy contract after a sale.
The fundamental principle of UAE tenancy law is that the sale of a property does not affect the existing tenancy contract. The existing tenancy contract remains fully valid and binding between the new landlord and the existing tenant. The tenant’s right to occupy the property for the remainder of the lease term is protected regardless of the change in ownership. The new landlord cannot immediately evict the tenant simply because the property has been sold. MoJ
This principle is codified in Law No. 26 of 2007 on regulating the relationship between landlords and tenants in Dubai, and its equivalent legislation in Abu Dhabi. The apartment can be sold, and there is no legal impediment to selling the property. If the new owner wishes to vacate the rented property, they must send a legal notice in accordance with the law. GOV.SA
The sale transfers ownership — but it also transfers the full burden of the landlord’s obligations to the buyer. The new owner steps into the shoes of the old one, inheriting both the right to receive rent and the obligation to honour every existing contractual commitment, including the security deposit liability.
Who Is Legally Responsible for Returning the Security Deposit?
This is the central legal question, and it has a direct answer grounded in official government guidance.
If the new owner wants to retain the tenants, then the new owner will become the tenants’ new landlord. The new landlord becomes responsible for all of the obligations of the old landlord, including any special terms agreed to in the original lease, and providing tenants with updated contact information and a statement about the security deposit. In addition, the new landlord may not increase the security deposit, but can only increase the rent. Etqan Law Firm
This position — published directly by the Dubai Land Department — is unambiguous: the new owner assumes the deposit obligation as part of assuming the landlord role. The tenant’s recourse at the end of the tenancy is against the new landlord, not the original one who collected the money.
The practical mechanism is equally clear. The security deposit held by the previous landlord should be transferred to the new landlord as part of the property sale transaction. The tenant should be informed of the new payment details for future rent payments. MoJ
In other words, the correct process — legally and in proper conveyancing practice — is: the selling landlord transfers the deposit funds to the buyer at completion of the property sale. The buyer acknowledges the deposit liability in writing to the tenant. The tenant is notified of the ownership change, the new contact details, and confirmation of the deposit amount being held on their behalf.
What the Original Landlord Must Do Before Selling
The original landlord’s obligations upon selling a tenanted property are not discretionary. Proper conduct requires notifying the tenant of the impending sale with reasonable advance notice, disclosing the security deposit amount to the prospective buyer before exchange of contracts, transferring the deposit funds to the buyer at completion, and providing the tenant with written confirmation of the new owner’s identity and contact details.
Failure to transfer the deposit to the buyer at completion does not extinguish the tenant’s right to recover it — it simply creates a dispute between the seller and buyer that the tenant should not bear the consequences of. If the original landlord retains the deposit after the sale without transferring it, both the original landlord and the new owner may find themselves jointly exposed to the tenant’s claim, depending on the terms of the sale agreement between them.
The tenant who discovers the deposit was never transferred should pursue the new owner as the primary respondent — since the law places the obligation there — while preserving documentary evidence against the original landlord in case the new owner disputes liability on the basis that no funds were transferred to them at sale.
What the New Owner Must Do After Purchasing a Tenanted Property
The new landlord is responsible for providing tenants with updated contact information and a statement about the security deposit. Etqan Law Firm This statement is not merely administrative courtesy — it is the new owner’s acknowledgment of the deposit liability they have assumed and serves as the documentary basis for the tenant’s future claim.
The new owner must not demand an increased security deposit from the existing tenant. The new landlord may not increase the security deposit, but can only increase the rent. Etqan Law Firm Any attempt to demand a supplementary deposit payment from an existing tenant after a property sale has no legal basis.
If the new owner fails to contact the tenant, fails to provide a deposit statement, or denies knowledge of or responsibility for the deposit, the tenant’s response is to make a written demand — clearly addressed to the new registered owner, referencing the original tenancy contract, the Ejari registration number in Dubai or Tawtheeq number in Abu Dhabi, the deposit amount paid, and the date of payment. This written demand creates the evidentiary record needed for a formal complaint.
The Ejari and Tawtheeq Connection: Why Registration Protects You
Registered tenancy contracts are the jurisdictional key to every formal remedy in this scenario. In Dubai, Ejari registration is the gateway to the Rental Disputes Centre. In Abu Dhabi, Tawtheeq registration is the prerequisite for the Rent Dispute Settlement Committee.
In case a dispute occurs between the landlord and the tenant, it would not be possible to submit a dispute application to the Rent Dispute Settlement Committee unless the tenancy contract is registered with the ADM Tawtheeq system. youssry saleh
For Dubai, Ejari registration performs the same protective function. The Ejari record identifies the registered landlord at the time of the contract, the tenancy terms, and the property — and when ownership transfers, the DLD’s records will reflect the new registered owner. This means the Rental Disputes Centre can identify both the former and current owner when adjudicating a deposit dispute arising from a property sale.
Tenants should verify their Ejari registration in Dubai through the Dubai REST app or through the Ejari portal. In Abu Dhabi, verify through the Abu Dhabi Municipality portal.
When the Deposit Was Never Transferred: The Practical Dispute
The scenario most tenants actually encounter is not a clean legal handover — it is one where the original landlord sold the property, kept the deposit, and the new owner claims they know nothing about it and owe nothing. Or alternatively, the new owner acknowledges the deposit in principle but disputes the amount, or claims deductions the original landlord informally described to them at sale.
In this situation, the tenant’s legal position remains clear: the deposit obligation attaches to the property’s landlord at the time of lease termination. The new owner, having assumed all landlord obligations upon purchase, is the liable party from the tenant’s perspective. Any dispute between the original and new landlord about whether the funds were transferred at sale is a matter between them — the tenant is not a party to that contractual arrangement and cannot be prejudiced by it.
The tenant’s practical steps when facing this dispute are:
First — issue a written demand to the new owner (the current registered landlord) specifying the deposit amount, the date it was paid, the original contract reference, and the Ejari or Tawtheeq number. Demand acknowledgment and confirm the deposit will be returned in full at the end of the tenancy, subject to legitimate deductions only.
Second — if the new owner disputes liability, file a formal complaint. Do not accept the position that the deposit is a matter between you and the previous landlord. The law does not support this position.
Third — simultaneously, preserve your rights against the original landlord by sending a parallel written demand to their last known address and contact details, particularly if the new owner has formally denied all liability. In cases where the new owner genuinely has no deposit funds because the original landlord withheld them, both parties may ultimately be respondents in the dispute process.
Filing a Complaint: Dubai vs. Abu Dhabi
Dubai: Rental Disputes Centre (RDC)
In Dubai, security deposit disputes — including those arising from a property sale — are filed with the Rental Disputes Centre under the Dubai Land Department. The RDC is accessible through the Dubai REST app or through the RDC portal. If you cannot agree with the landlord, file a formal complaint with the RERA security deposit disputes department. Be prepared with your tenancy contract, Ejari registration, move-in and move-out reports, all correspondence exchanged with the landlord, and anything else that supports your position. Expat.com
Filing fees at the RDC are calculated as a percentage of the claim value. The RDC mediation process typically runs within two to four weeks from filing. For a deposit dispute arising specifically from a property sale, include the DLD title deed transfer record showing the new registered owner alongside the standard documents — this establishes who the correct respondent is and eliminates the new owner’s ability to claim they are not the relevant party.
If deductions from a landlord seem excessive or undocumented, you may file a complaint with the Dubai Rental Dispute Settlement Centre within 30 days of vacating. The RDSC typically processes these cases in two to four weeks, mediating between tenant and landlord. Gulf News While the 30-day reference applies to deduction disputes at lease end, a deposit withholding dispute can be filed at any point after the landlord has refused a written demand.
Abu Dhabi: Rent Dispute Settlement Committee (RDSC)
In Abu Dhabi, the equivalent forum is the Rent Dispute Settlement Committee under the Abu Dhabi Judicial Department, accessible through the ADJD portal or in person at Al Nawfal Street, Al Rawdah. The complaint fee is 4% of the claim amount capped at AED 10,000. The Tawtheeq-registered contract is the mandatory prerequisite for filing, as noted in the preceding section.
What Deductions Are Legally Permitted at Lease End Regardless of Who Pays
Whether the deposit is held by the original landlord, transferred to the new owner, or contested between them, the deductions that can legitimately be made from it at lease termination are fixed by law regardless of the ownership situation.
Subsequent to the contract’s termination, the landlord is obligated to return the security deposit or the remaining portion thereof to the tenant. It is important to note that comprehensive cleaning and painting of the interior walls upon the tenant’s departure is typically the responsibility of the owner, as it is a customary practice and not the tenant’s obligation. youssry saleh
Legitimate deductions include: property damage beyond normal wear and tear, unpaid rent, outstanding utility bills that were the tenant’s contractual responsibility, and outstanding service charges where the contract assigns this obligation to the tenant. The landlord must refund the deposit or the balance thereof to the tenant upon expiry of the rent contract. It is the responsibility of a tenant to maintain a rented apartment in good condition, except for reasonable wear and tear. Mondaq
Normal wear and tear — scuff marks, minor paint fading, small nail holes, carpet flattening from normal use — cannot be deducted. A new owner who attempts to deduct these costs, or who inflates deductions because they were not present during the tenancy and cannot accurately assess what was pre-existing, is acting outside their legal authority.
The best protection against disputed deductions in any scenario — but particularly where ownership has changed hands during the tenancy — is a thorough, timestamped photo and video record of the property’s condition both at move-in and at move-out, signed by both parties wherever possible.
For tenants navigating connected disputes about unpaid rent claims, service charge obligations, or eviction notices arising from a property sale, Wirestork’s guides on rental disputes in the UAE and eviction of tenants in Dubai cover those adjacent legal issues in full.
Can the New Owner Evict You to Avoid the Deposit Obligation?
Some tenants worry that a new owner might manufacture grounds for eviction to avoid returning the deposit. The law addresses this clearly.
The new owner can ask the tenants to evacuate the property if the new owner, or the new owner’s relative, wants to live in the property — but the new owner must ask the previous landlord in writing. Etqan Law Firm Even personal use eviction requires formal written notice served through the correct legal channels and cannot be immediate — it must comply with the notice periods prescribed under the relevant emirate’s tenancy law.
An eviction that is timed to coincide with a deposit dispute, or that lacks a legitimate legal basis, can be challenged before the RDC in Dubai or the RDSC in Abu Dhabi. A tenant who successfully contests an unlawful eviction also preserves their deposit claim. The two proceedings can run simultaneously. For the specific legal framework governing travel bans that can sometimes arise from unresolved rental disputes, Wirestork’s guide on UAE travel ban on rental disputes provides useful context for tenants who are also managing immigration-related concerns.
Key Takeaways
- Under UAE law, the sale of a property does not affect the existing tenancy contract — the new owner inherits all of the original landlord’s obligations, including the security deposit liability.
- The Dubai Land Department has expressly confirmed that when a new owner retains the tenant, they must provide the tenant with a statement about the security deposit and assume full responsibility for returning it at the end of the tenancy.
- The correct process at sale is for the original landlord to transfer the deposit funds to the buyer at completion. If this did not happen, the dispute is between the seller and buyer — the tenant’s claim is against the new owner as the current registered landlord.
- The new owner cannot demand an increased security deposit from an existing tenant after purchasing the property.
- Tenants must have a registered tenancy contract — Ejari in Dubai, Tawtheeq in Abu Dhabi — to access the formal dispute resolution process. Verify registration before any dispute escalates.
- Deposit disputes arising from a property sale are filed with the Rental Disputes Centre in Dubai (through the Dubai REST app or rdc.gov.ae) or the Rent Dispute Settlement Committee in Abu Dhabi (through adjd.gov.ae). Include the DLD title deed transfer record to establish the correct respondent.
- Legitimate deductions at lease end are limited to damage beyond normal wear and tear, unpaid rent, and outstanding utility or service charges — these apply regardless of how many times the property has changed hands during the tenancy.
Conclusion
The law is clear and the institutional guidance is explicit: when a property is sold with a tenant in residence, the new owner assumes the deposit obligation. It is not a matter for the tenant to negotiate with the former landlord after the fact, and it is not a grey area that ownership change creates ambiguity around. The deposit attaches to the landlord role — and when ownership transfers, so does the liability.
The practical complications arise not from legal ambiguity but from failures in the sale process: original landlords who do not transfer deposit funds to buyers, new owners who purchase without due diligence on outstanding deposit liabilities, and conveyancing transactions that treat the deposit as invisible. None of these failures alter the tenant’s legal entitlement — they simply determine who ends up in a dispute with whom to satisfy it.
A tenant whose deposit is at risk because their landlord sold the property should act proactively: get the new owner’s details from the DLD or ADM records, issue a written demand immediately acknowledging the deposit and confirming it will be returned at lease end, and — if the new owner refuses to engage — file with the RDC or RDSC without delay. The registered tenancy contract, the original deposit receipt or cheque record, and any communication about the sale are sufficient to establish the claim.
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Frequently Asked Questions
Q1: Who is responsible for returning my security deposit if my landlord sold the property while I am still living there?
The new owner is legally responsible. Under UAE tenancy law, the sale of a property transfers all landlord obligations to the buyer, including the security deposit liability. The Dubai Land Department has confirmed this explicitly: when a new owner retains the existing tenant, they become responsible for all obligations of the original landlord, including providing the tenant with a statement about the security deposit. The correct process at sale is for the original landlord to transfer the deposit funds to the buyer at completion. If this did not happen, it is a matter between the seller and buyer — the tenant’s legal claim is against the new owner as the currently registered landlord.
Q2: What if the new owner says the deposit is not their problem because they never received it from the previous landlord?
This position has no legal basis from the tenant’s perspective. The deposit obligation attaches to the landlord role, and when the new owner assumed that role upon purchase, they assumed all associated liabilities. Whether the original landlord transferred the funds at sale is a conveyancing matter between seller and buyer. The tenant cannot be prejudiced by a failure in the sale process they were not party to. Issue a written demand to the new owner as the current registered landlord, and if refused, file a complaint with the RDC in Dubai or the RDSC in Abu Dhabi. The DLD title deed transfer record establishing the new owner’s identity is a key document for the complaint.
Q3: Can the new owner demand an additional security deposit from me after purchasing the property?
No. The Dubai Land Department has explicitly confirmed that a new landlord may not increase the security deposit after purchasing a tenanted property. The deposit amount agreed in the original tenancy contract is fixed for the duration of that contract and any renewal thereof. Any demand for a supplementary deposit payment from an existing tenant after a property sale has no legal basis and can be refused without any consequence to the tenant’s occupancy rights.
Q4: How do I find out who the new registered owner is so I can make a written demand?
In Dubai, you can search the property’s registered ownership through the Dubai REST app using the property’s Ejari contract details or the plot number, or by visiting the Dubai Land Department directly. In Abu Dhabi, the Abu Dhabi Municipality’s property registration records are accessible through the ADM portal. You can also request the information through a formal inquiry to the relevant land department if you have your tenancy contract and Tawtheeq or Ejari registration number. Once you have the new owner’s registered contact details, your written demand is formally addressed to them as the current landlord of record.
Q5: What documents do I need to file a deposit dispute arising from a property sale?
For Dubai’s RDC: your Ejari-registered tenancy contract, Emirates ID and passport copy, the DLD title deed transfer record showing the new registered owner, your original deposit receipt or the cheque stub showing the deposit payment, all written communications with both the original and new landlord about the deposit, and any move-in condition report or photo evidence. For Abu Dhabi’s RDSC: your Tawtheeq-registered contract, same identification documents, equivalent ownership transfer record from ADM, deposit payment evidence, and all communications. In both cases, any written statement from the new owner denying deposit liability is itself useful evidence establishing that a genuine dispute exists.
Q6: What legitimate deductions can the new owner make from my deposit when I eventually leave?
The same deductions that any landlord can lawfully make: property damage beyond normal wear and tear, unpaid rent outstanding at the time of departure, utility bills that were your contractual responsibility and remain unpaid, and any service charges contractually assigned to you that are outstanding. The new owner cannot deduct for normal wear and tear, for painting and comprehensive cleaning which are the owner’s responsibility on departure, or for pre-existing damage that was present before your tenancy began. Document the property’s condition thoroughly — timestamped photos and video at both move-in and move-out — particularly given that the new owner may not have been present during your tenancy and may attempt to attribute pre-existing damage to you.
Q7: Can the new owner evict me to avoid returning the security deposit?
A new owner cannot evict a tenant without valid legal grounds and the prescribed notice period, regardless of any deposit dispute. Valid grounds under Dubai Law No. 26 of 2007 include personal use by the new owner or their first-degree relative — but even in that case, formal written notice through the correct legal channels is mandatory and must comply with the notice period requirements. An eviction that lacks a valid legal basis, or that appears timed to coincide with a deposit dispute, can be challenged before the RDC in Dubai or the RDSC in Abu Dhabi. A successful challenge to an unlawful eviction preserves the tenant’s deposit claim simultaneously.
Martin Walbourgh is an online marketing strategist with over 17 years of hands-on experience in performance marketing, reputation management, and programmatic advertising. Currently serving as Director of Strategic Partnerships at Wirestork, Martin has built a career helping online brands recover lost revenue and strengthen their digital presence — working with notable names including H&M, Skagen, and Strauss.
A Forbes contributor and alumnus of the London School of Economics, Martin’s expertise spans SEO, brand marketing, lead generation, performance marketing, and online reputation management.
