Q: Hi, I had signed an MOU to buy an apartment. I had the following clause in the MOU: "This sale purchase contract is subject to the final approval from the Buyers Banks" My mortgage has been rejected by one bank. While I was processing my mortgage with another bank the MOU expired and the seller is not willing to extend the MOU. Can I claim my deposit check back from the agent? Thanks, Dinesh

Q: Dear all, I am writing to you regarding a property sale breach of contract. I signed a Memorandum of Understanding (MOU) as the buyer of a mortgaged property in Dubai. The purchase I am making is also through a mortgage. However, the seller only cleared the mortgage on the property he is selling to me after I received the final offer letter from the bank for the mortgage I applied for, based on the documents I submitted. The seller signed the MOU to sell a mortgaged property and provided the documents to support this. However, my bank has declined the disbursement because the details have changed without prior notification or explanation. In order to complete the transfer, I have to reapply for a mortgage. The seller has refused to extend the MOU, and a new title deed has to be issued according to the new details of the mortgage-free property. How can I best deal with this situation, since the MOU has expired and everything was done on time from my side? Thank you!

س: يخطط بائع العقار لتسوية الرهن العقاري الخاص به مع مصرفه قبل بيع العقار لي. بعبارة أخرى، أخبرني البائع أنه يريد الذهاب إلى مصرفه، وسداد الرصيد المستحق، ثم انتظار خطاب تأكيد تسوية الرهن العقاري من قبل البنك. ما هي المدة التي تستغرقها هذه الإجراءات عادةً في دولة الإمارات؟ هل يحدث أي تأخير من جانب البنوك؟

Q: This was my initial question: My brother and I applied for a mortgage loan for a property from a bank and we signed Form F with the real estate agency back in March 2024. However, during this process, we both lost our jobs, and thus the mortgage wasn’t approved and Form F expired. We also informed the real estate agency of such circumstances as to why we won’t be moving ahead. Yesterday, we were both along with the real estate agency given a legal notice to pay the 10% deposit which was contracted in Form F. However, this already expired and the real estate agency has gone missing along with the agents we were dealing with. The owner says the same that he wasn’t informed about it and will continue with the case.  Now even after our reply to the legal notice, the owner has filed a lawsuit and there is now a court date online. What would be the best way to proceed and how can we make this lawsuit go away? It is causing us a lot of stress.

Q: Hi, I need some guidance regarding a property transaction that is not progressing as expected. My broker initiated a manual Memorandum of Understanding (MOU) between me (the Buyer) and the Seller, with an expiry date of 01/02/2025. Within this period, I successfully arranged the bank mortgage, property evaluation, and NOC. However, the broker started giving excuses, such as the seller being hospitalized. Later, the broker attempted to arrange a Power of Attorney (POA). However, after that, they started ignoring my messages and calls. It now seems like they no longer intend to proceed with me, and the MOU has already expired. Meanwhile, my bank EMI has already started, and I have paid two monthly installments. The broker is still unresponsive. I have raised multiple complaints through DLD RVS against the broker, but the response has been very slow and unsatisfactory. I’m feeling stuck and financially burdened. Please advise

Q: Hello, My buyer keeps delaying the purchase of my property. First, he took 2 weeks to register the DEWA. Then he delayed the handover until the 14th of April. On the 12th of April, he disclosed that he was selling his own apartment and would have the money by the 16th or 17th of April. Now he wants an extension on the MOU, which expires on the 20th of April. He has shown me bank cheques from his buyer, but he won't let me cash the 10% deposit and wants to give a new cheque dated 30th April for the full handover. In that time, I've paid for an NOC (1,050 AED), NOC renewal (525 AED), bank liability letter (65 AED), and service charges (2,600 AED). If the sale doesn't complete by the 23rd of April, I'll have to pay another 1,050 AED NOC charge and 65 AED for a new bank liability letter. My buyer doesn’t have the money for a non-refundable deposit. I asked for a deposit now to extend the MOU. How can I take him to court in DIFC, and what are the fees involved to get the deposit?

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.

The provisions of this Law apply to the mortgage of real roperty as security for debt. It makes no difference whether the debt is secured by a charge over the whole of the property or over an undivided interest therein or by right in rem or personal right over a property marked as sold off-plan.