أسئلة وأجوبة
A buyer is delaying the property purchase. Can I take legal action through DIFC Court?
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?
Dear Inquirer,
Thank you for your message!
Based on the situation, your buyer’s repeated delays and refusal to release the 10% deposit may amount to a breach of the Memorandum of Understanding (MOU), especially if time is of the essence in the agreement.
You may be entitled to claim compensation for your losses, including fees you’ve already incurred. Filing a case with the DIFC Courts or the Dubai Courts, depending on the jurisdiction mentioned in your MOU, is possible, but it requires careful legal review of your contract and evidence.
To assess your legal options and initiate proceedings to recover your dues or enforce the MOU, we recommend booking a consultation with us. We can also assist in representing you throughout the legal process.
You may sue the buyer in the Dubai International Financial Centre (DIFC) if they fail to comply with the terms of the memorandum of understanding, make the required payment, or cause an unjustified delay.
You must file a formal complaint with the court or the DIFC Dispute Resolution Committee.
Legal fees associated with filing a lawsuit depend on the type of case and the amounts in dispute.
For assistance, please contact us by phone or WhatsApp at [---------].
Dear Questioner,
Thank you for your message!
Based on what you’ve shared, the buyer is continuously delaying the transaction and now requesting an extension of the MOU without offering a non-refundable deposit, while you've already incurred several costs.
1. Key Points:
a. MOU Enforcement:
If the Memorandum of Understanding (MOU) was signed and includes clear timelines, obligations, and penalties, you may be entitled to claim damages or retain the 10% deposit if the buyer fails to complete.
b. Legal Action (DIFC Court):
You may consider filing a case in DIFC Small Claims Tribunal (SCT) only if:
- The MOU is governed by DIFC law, or
- The transaction or one of the parties has agreed to DIFC jurisdiction.
If not, the case would generally fall under Dubai Courts or Dubai Real Estate Court (depending on the property location and the MOU terms).
c. Legal Fees in DIFC SCT:
For claims up to AED 500,000, you can file in the Small Claims Tribunal (SCT). Filing fee is 5% of the claim amount (minimum AED 500, maximum AED 20,000).
Proceedings are in English and are generally quicker and more straightforward.
2. Your Options Now:
If the buyer fails to complete by the MOU deadline, you may:
- Cancel the deal, retain the 10% deposit (if the MOU allows), and
- Claim for your actual costs (NOC, service charges, etc.)
If the buyer refuses to pay or delays further, we can file a legal case to recover losses and enforce the MOU.
Please send me a copy of the signed MOU so I can review it and confirm if DIFC has jurisdiction, and advise you on the next legal steps.
Best regards,
Mohammed Salah
Legal Consultant
Hello,
Yes. In Dubai, the Form F (Sales and Purchase Agreement, often part of the MoU) is legally binding once signed by both parties.
Even private MoUs are enforceable if signed and clear in terms, especially if timelines and deposit terms are defined. If you go to court (DIFC or Dubai Courts), you can claim the 10% deposit as per the MoU, if it states it’s forfeitable in case of default.
You can also claim compensation for actual costs you’ve paid (NOC, service charges, etc.), and possibly terminate the agreement and relist the property.
For further assistance, kindly share your WhatsApp number.
Dear Client,
Thank you for outlining the situation regarding the repeated delays by your buyer in completing the purchase of your property.
I understand the financial inconvenience this has caused, especially with the additional costs you have incurred for NOC renewals, service charges, and other related fees.
Here are your options and the recommended course of action:
1. Final Written Notice:
I recommend issuing a formal, written notice to the buyer referencing the Memorandum of Understanding (MOU) and clearly stating that, due to repeated delays and failure to provide a non-refundable deposit, you will be compelled to take legal action if the transaction is not completed by the agreed deadline.
Include a summary of your incurred expenses and request immediate settlement or a firm commitment with a non-refundable deposit.
2. Legal Action in DIFC Courts:
If your property is located within the DIFC or your MOU specifies DIFC Courts as the jurisdiction, you may initiate a claim for recovery of the deposit and any additional damages.
- Court Fees: The DIFC Court fee is typically 5% of the claim value, with a minimum of USD 1,500 (approximately AED 5,500).
- Required Documentation: You will need to submit the MOU, evidence of your expenses, and all communications with the buyer demonstrating their delays and non-performance.
3. Alternative Jurisdiction:
If your property is not within the DIFC and there is no jurisdiction clause in your MOU, you may need to file your claim with the Dubai Property Court, where the maximum court fee is AED 40,000.
4. Next Steps:
- Send a final demand to the buyer as outlined above.
- Prepare all supporting documents, including the MOU, proof of expenses, and correspondence.
- If the buyer fails to comply, proceed with filing a claim in the appropriate court.
Should you require assistance with drafting formal notices or initiating legal proceedings, please let me know. I am available to support you through each step of the process.
Best regards,
