How to make the seller hand over the tenant's security deposit to the buyer upon completing a sale?

Dear Client,

Regarding the transfer of tenants' security deposits in Dubai real estate transactions, while there's no strict legal requirement for the seller to hand over the deposit to the buyer, it's typically managed by the parties involved, including agents or brokers.

Since the broker committed to following up with the seller for the deposit but hasn't done so, I suggest contacting them to inquire about the status. If needed, consider legal legal consultation from me to ensure your rights are protected.

Please feel free to reach out for further assistance.

Best regards,

Abdul Wahied

According to a normal tenancy contract, the landlord will be responsible for the security deposit.

In the above situation, you have come into the position of the landlord by purchasing that property.

So the seller has the responsibility to provide you with the security deposit as well. Furthermore, it will be specifically mentioned in the SPA or MOU as well.

If you want to ensure that we will review the agreement or if you want to discuss more with us share your WhatsApp number.

This should be clarified at the time of sale when the parties were aware that there was a tenant.

Now the tenant will expect a refund of the deposit from the new buyer. Perhaps you should send a formal notice to the seller.

From Nikhat Sardar Khan

Dear Questioner,

In response to your query, it is important to note that in accordance with the prevailing real estate laws of Dubai, upon the legal conclusion of a sale, the buyer assumes the position of the landlord.

Consequently, the new buyer is typically responsible for reimbursing the security deposit in accordance with the terms outlined in the tenancy contract.

Regarding the transfer of the security deposit between the seller and buyer, it is common practice for the deposit held by the landlord (seller) to be transferred to the new landlord (buyer) upon the completion of the sale.

This transfer is typically documented within the sale agreement. We recommend verifying this arrangement within the sale agreement in consultation with the broker and/or seller to ensure clarity and adherence to the agreed-upon terms.

Should you require further assistance or clarification regarding this matter, please do not hesitate to reach out.

Best regards,

Adv. Abdul Haq

Legal Consultant

Maryam Alyassi Advocates and Legal Consultants

According to UAE law, the seller is responsible for transferring the security deposit to the buyer upon completing the sale.

This is typically done through the broker or real estate agent involved in the transaction. The broker should follow up with the seller and collect the deposit on behalf of the buyer.

If the broker has not fulfilled their responsibility, the buyer can directly contact the seller and request the transfer of the security deposit.

If the seller refuses to transfer the deposit, the buyer can file a complaint with the Dubai Land Department or seek legal assistance to resolve the issue.

It is important to note that the security deposit should be transferred to the new owner within 14 days of the sale completion.

If this does not happen, the buyer can also request compensation for any damages or losses incurred due to the delay in receiving the deposit.

In summary, the seller is responsible for transferring the security deposit to the buyer and the broker should facilitate this process.