Q: Hi, What if the buyer backs out in the purchase of a property after the internal MOU drafted by the seller was signed? There was a clause stating the security deposit will be returned upon full payment. Form F from the DLD was not yet signed. In this case, can we still get the 10% security deposit or not?

Q: If Form F of a property states that a property is tenanted to a certain date, and the date is incorrect, does the buyer have a claim to withdraw from the sale? Essentially, I was told in writing that the tenant would "leave" the property by a certain date. The actual notice was served to the client after the date of Form F being served, meaning that the tenant will be in the apartment for a further 12 months. Do I have a right to withdraw as a buyer and have my deposit cheques returned?

Q: I am going to buy a property through an agent in a registered company. Just before signing an MOU and giving a 10% cheque, we came to know that the owner is not here and the stated name in the MOU is the holder of POA (power of attorney). What should I do in this situation? With whom to sign the MOU and under whose name is the cheque to be given? They put the name of the POA holder but the title deed has the name of the owner. Should we ask for POA and get it verified? How to verify it?

Q: Hi I have signed the MOU Form F since July 2023 and we prepared all the papers and the loan from my end on 23/8/2023. When I went to DLD for the transfer, the seller had registration issues and asked for some papers to be provided as the property is under the company not an individual. Since that time, we have kept renewing the MOU every month in the hope of finalizing but I am not seeing any progress. So I am asking about legal action as I already got a bank mortgage and started paying as well but not seeing any progress from the seller. So I need to ask the following: 1. If my MOU expired on 20.11.2023, can I file a complaint on 20 or after a couple of days like 23? 2. What will happen in terms of 10%? Will it be returned and what about the fees paid to the bank like mortgage fees, evaluation, and cancellation of loan? Will the EMI payment be compensated by the seller? 3. What is your advice? Thanks

Q: Hello, I signed a contract Form F with the seller through an agent on 1st Aug 2023. He was supposed to finish the transfer on 16th October but he did not do the transfer. The property was 90% completed at the time of making the contract and he assured us that in one month he would finish the property. I sent him the legal notice on 16th Oct 2023 which is the last date of the MOU. After the date of expiry of the contract, he is demanding more money. We agreed verbally on the new price but still, he avoids making a new MOU. He puts all the clauses in his favor removing the main clause that if he backs out, there will be no penalty.

Q: Hello, A buyer of my property has refused to proceed after signing the MOU. Form F indicates the penalty type as "NO." Am I entitled to a deposit cheque or compensation? I have already rejected other buyers and came to Dubai for the deal, but the buyer is not answering the phone.

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.