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 Lawyers, I signed a Form F with a buyer for the sale of my house as we were planning to leave the country. The contract was signed about a month ago, but the handover is not until August. Due to personal circumstances changing, we are no longer leaving Dubai and would like to cancel Form F. The Form F contract stipulates that we have to pay the buyer 10% of the purchase value. The real estate agent is now claiming that we also have to pay the buyer's real estate commission and the conveyancing fee. Our understanding is that the 10% penalty is the only penalty. Which is correct, and what are the next steps to dispute this? Also, is there any way to dispute the 10% itself under the law due to personal circumstances changing?

Q: Dear Sir/Madam, I am a seller. I have signed Form F, but now I want to back out. What options do I have to avoid paying the 10% penalty?

The provisions of this Law supersede articles (2) and (11) of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.

This Law establishes interim property register in which sale contracts, off-plan sales, and other off-plan legal dispositions of real property are registered prior to inclusion in the property register maintained by Dubai Land Department.

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.