Questions & Answers
Real estate matter in the UAE
We are from the UK and our broker found a buyer for a property. The MOU was agreed and had an expected transfer date and expiry date. The MOU stated that the buyer will prepare for NOC and the take transfer of the property during the period we are in Dubai.
We arrived in Dubai during the agreed dates. The buyer did not prepare the NOC in advance but only after we arrived leaving insufficient time for the NOC to be completed. The buyer did give us a small cash advance on the sale which we still hold. On the day of the transfer, the buyer claimed they had an emergency and were not available to complete the process. We had to return to the UK.
However, the buyer and broker are now expecting us to return to Dubai to complete the process. However, due to health restrictions we can not do this easily.
Are we as sellers obliged to return and complete the transfer? Has the MOU effectively expired? Are we entitled to the buyer's deposit? Can the MOU be terminated?
Thank You.
At the time of real estate transaction an interim MOU is signed between the parties where all the parties have certain rights and obligations to complete this transaction smoothly, we had not perused that legal document and are unaware of the terms mentioned therein. However, we understand that this MOU can be still effective and if the date is expired it can be changed further by both the parties with mutual consent.
In this specific case, it seems that buyer has violated the term of agreement putting a space for the seller to be entitled to the advance he received as an initial amount. The disputed matter can be referred to relevant regulatory authority to find an amicable solution.
I would suggest the questioner send the copy of MOU at info@pmealc.com to enable us to formulate a precise legal opinion on this matter.
