We signed an MOU and it expired before the developer granted NOC. Can we refuse to extend?

Dear Questioner,

Thanks for your enquiry.

Regarding the above, we would like to inform you that, according to UAE law, an MOU (Memorandum of Understanding) is a non-binding agreement that outlines the basic terms and conditions of a potential transaction between two parties.

It is not a legally binding contract and does not have the same legal weight as a formal contract.

In this case, since the MOU has expired, you are not legally obligated to extend the contract or sell your property to the buyer.

However, it is important to communicate your decision to the buyer in a timely and professional manner.

You may also consider offering the buyer the opportunity to match the better offers you have received for your property.

If the buyer has already issued a manager's cheque, you may need to return it to them or negotiate a mutually agreeable solution.

It is always advisable to join us at the office to seek legal advice in such situations to ensure that your actions are in compliance with UAE laws and regulations.

Please do not hesitate to contact us for any further enquiry by phone or email.

Greetings

Yes, you can refuse. But before that, you have to review the termination clauses.

If you want, we will review and advice accordingly to exit from this MOU.

Share your WhatsApp number for further discussion.