Q: There was an MOU. The initial agreement was cancelled. They are asking for hefty fees to be paid and then they will release the escrow cheque… A: It is better to send an official email or letter to the developer mentioning your concern. If you want to cancel the contract, you have to file a case…

As per your query, there are certain aspects to look at: 1. How was the cheque financed? 2. Was the sale and purchase agreement signed by the buyer? If it was not signed, then how the bank or the financial institution issued the cheque for the escrow account? 3. Do you have Oqood in your name? Is the property registered in the interim register? 4. On what basis the charges are relived in order to release the cheque? If you want to cancel the property, you have to abide by the contract and the clauses. Also, you have to see what is the stage of the development? Is there any job loss or income reduction? Why do you want to release the cheque? Is the title deeds with the bank? In any case, it is better to send an official email or letter to the developer mentioning your concern and if you want to cancel the contract, you have to file a case, in order to settle after you send the legal notice for cancellation. However, everything is hypothetical and unless we see the proper documents, nothing can be given as opinion. Please contact us via phone or email for further assistance.

Escrow cheque recovery when the contracts are not signed

Questions & Answers

Questions & Answers

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Restitution of down payment after cancellation of the booking

Q: Hello! I bought an apartment in Dubai 1 month ago from a developer and the owner is [------]. A few days ago, the agent called me to say that there are some problems with the building named studio 101 and if I want to cancel my booking to come to the office. I went to the office and I signed the cancellation form. After a day, I found out that they closed the office so I went to DLD to file a complaint. I did and now nobody knows what happen or where my money is. I paid AED 120000 down payment and I was about to start paying monthly according to the payment plan. I want to mention that when I paid the down payment they gave me a receipt but never told me if the money went to the escrow account where they were supposed to go. Can someone help me, please? How do I get my money back?

May 7, 2019

1520

Action against the developer for violating the rules of escrow account

Q: Hi, What action do I take if a developer has accepted cheques from me (towards my 30% off-plan payment plan) that were made payable to the company (and not payable to the specific escrow account for the developer's project I am buying from)? Is this illegal and voids my SPA contract with the developer? Thanks for your advice.

Apr 20, 2020

1702

Rescinding a property reservation agreement and getting refund

Q: I have purchased a property in Dubai in Dec 2017 by putting a 30% deposit of the purchase price to the Developers account and received the reservation form and receipts only. However, I still do not have the SPA or OQOOD as of Aug 2018. The developer has been saying the SPA templates have been getting delayed at DLD. Per the reservation form, I have an upcoming payment in Sep 2018, however, I do not want to pay this as I still don't have the SPA or Oqood which is my legal document and there is no escrow account per DLD website. What is my legal position here and how can I get this resolved or can I get refunded given there is no contract as yet? Please guide

Sep 20, 2018

4401

What are the rules for opening and withdrawing from an off-plan escrow account?

Q: Dear Lawyers, Could someone share or let me know the rules and procedures for withdrawing money from an off-plan escrow account, the requirements for withdrawal, and the requirements for opening an off-plan escrow account?

Sep 24, 2024

279

Laws & Regulations

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Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development in the Emirate of Dubai

This Law applies to developers who sell units off-plan in real estate development projects in the Emirate of Dubai and who should receive payments from purchasers or financiers towards such real property units to the special escrow accounts.

May 6, 2007

11343

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.

Aug 14, 2008

4822

Law No. (9) of 2009 Amending Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai

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.

Apr 12, 2009

3113

Khaled Mahmoud Shibl

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Can the landlord request the tenant to pay the chiller in the middle of the contract?

I live in Dubai Marina, and the landlord claimed that according to new Dubai Land regulations, the chiller now has to be paid by the person occupying the apartment. Even though my contract says that the landlord should pay the chiller, they want to implement this mid-contract. I understand that the terms upon renewal will be renegotiated, but on what grounds can they implement the change mid-contract? Does a new DLD regulation precede a tenancy contract? Moreover, I am receiving a disconnection notice from the chiller company due to non-payment. What can I do if this happens? Please advise.

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Can I travel with a non-paid telecom bill in the UAE if my visa is canceled?

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Does the new property owner have to sign a new contract with the tenant?

Hi, I'm a new landlord of the property which is already rented. Kindly advise, do we have to sign a new tenancy contract with the tenant for the remaining period? And who will pay the cost of Ejari?

Feb 16, 2023

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Cleaner's resignation with 30-day notice in incomplete contract

Hello, Good afternoon! My friend works as a cleaner for a cleaning company and she now wants to resign with a 30-day notice. However, she has not completed the two-year contract and has only served for 16 months. Additionally, she has not taken any vacation leave. The sad part is that when she signed the offer letter, she did not receive a copy of it and only signed it. I would be very grateful if you could let me know if she would have to pay or if her boss has the right to not accept the resignation if the notice period mentioned in the offer letter is more than a month. Her boss has not provided her with any kind of proof that she can use in the future if anything happens.

Feb 13, 2023

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The ownership of a code of a web application

Hello, I represent a tech-based marketplace company registered in a Freezone, in the UAE. This is in regards to the UAE's law regarding the ownership of code when there is no clause mentioned in the agreement. One of our products (web application) is being developed by an agency in the UAE. While we do have agreements in place, there is no clause regarding ownership of code. In the situation mentioned above, I've heard that the ownership of code either goes to the author or the agency that employed the author. Is this true? Your assistance and help would be of great help.

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