Q: Hello, Legal Advice Middle East I am writing to seek your advice on my ongoing process of buying an apartment in Dubai Marina. I have signed an MoU with the seller, it is valid until 21 May 2024. I have done the valuation process but the result was not reaching the selling price at all so I couldn't proceed with the mortgage. In good faith, I was seeking another way and was willing to conduct a 2nd valuation and pay for it again, and still, the result came out unfavorably again for the 2nd valuation. This means I cannot get the mortgage from the bank at 80% of what I am hoping for. Therefore, I would like to ask the seller to either sell the apartment to me at the valued rate or cancel the MoU altogether and not proceed with the sale. My questions: Can I just wait for the MoU to expire on 21 May without doing anything? Would this cancel the MoU automatically if it's reached expiration? Can the seller sue me and get the 10% deposit cheque amount? What would you suggest I do in this case?

Q: Dear Sir/Madam, Form F was signed between the seller and the buyer; however, the seller did not proceed with the transaction, resulting in its failure. The contract stipulates that if the seller breaches the deal without reason, they are obliged to pay a fine of 10%. Can I, as the buyer, take legal action?

Q: Hello, Legal Advice ME I am writing to seek your advice on my ongoing process of buying an apartment. I have signed contract F, which is valid until 15 Aug 2024. My plan was to buy it financed by a mortgage. I got my pre-approval and signed the contract, then passed it to the agency to complete all needed paperwork. The agency took over with the bank, and then I found out that the apartment, although not a hotel, is listed as a hotel apartment on the title deed. The bank said processing this would take a very long time. I applied with a different bank, again all pre-approved, but as soon as they found out about the property type stated on the title deed, they said they cannot finance it. My questions are: - If the first bank is unable to process all the paperwork on time, will the contract be automatically canceled? - Can I cancel the contract based on the fact that I was not made aware of the property type stated on the title deed before signing the contract? Would I get the 10% deposit back?

Q: Dear Lawyers, I have verbally agreed on the sale price of a property I wish to buy. What happens if I sign the MoU, deposit my 10% security, and the finance falls through, or the bank undervalues the property, meaning I’d need a larger deposit? Can I get it written into the MoU that for such reasons I will not be liable to lose my deposit or cover agents' fees, and would this be legally binding?

Q: Hello, I'm about to buy a property in Dubai on the secondary market and have some questions. The agent sent me a link to the Real Estate Brokerage Contract with the following note: A 10% deposit cheque will be given to our agency under the seller's name for the XX apartment. It is non-transferable without consent from both parties and will be returned only by judicial order in case of a dispute. Is it legal to hand over a physical deposit cheque to the agent under the owner’s name before signing Form F, with the mentioned note? If I give this cheque before signing Form F, will I get it back if I change my mind? My rights are not protected here if the owner changes his mind before signing Form F. I tried to verify the title deed ownership on the DLD site, but it shows "Records not found." The agent said this happens sometimes because the owner didn't update their details two years ago when they bought the property, and everything will be validated at the trustee office. Is this correct, or should I insist on updating the details to see validation on the DLD site?

Q: Hi, I wanted to purchase a 2-bedroom apartment in JVC Dubai. I gave a 10% security deposit cheque to the seller. The price mentioned in the MoU is very high compared to other similar apartments in the same building. The bank’s valuation also came in very low. Since the valuation is much lower, how can I terminate the MoU and get my cheque back? The MoU ends on 1st October 2024. One of the articles in the MoU states: In the event that the Buyer fails to make the payments as agreed or fails to complete the transfer on the agreed date due to his own acts or omissions, the Seller has the right to terminate this agreement and retain the deposit, provided that the termination is due to a violation of the agreed terms, unless both parties agree amicably to different dates. I need help urgently.

Q: Hi, I went to see an apartment, and the property agency asked for a 1,000 AED security deposit to block the apartment. They told me I would receive a receipt for the payment. Before giving the money, I asked for a sample contract to review the cancellation terms, and it stated: "Applicable Cancellation Policy: If canceled or modified up to 14 days before the date of arrival, no fee will be charged." After one day, due to a change in plans, I requested a cancellation and demanded my 1,000 AED back, as the cancellation was well within the 14-day period. The agency refused and is not refunding my money. Please advise!

An interview-format article covering the topic of contracts in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.