Questions & Answers
Can the seller force the broker to pay security deposit if the buyer breaches the MOU?
Hi.
I would like to ask a question regarding the real estate property sale agreement.
We are brokers and we had a client who wanted to buy a property in the UAE. The seller was selling it for 2.1M and the buyer agreed to that price and they both signed the MOU.
In the MOU there's an article mentioned that the buyer and seller must each submit a security deposit cheque amounting to AED 100,000 that we the broker will keep and be returned to both after a successful transaction.
And there is another article stating that if ever any of the parties cancel or withdraw from the agreement period which is 15 working days, then the security deposit will serve as a penalty and then be disbursed to the broker and the damaged party.
In this case, the BUYER didn't give us a security deposit cheque and then he canceled after a few days.
Now the SELLER is pursuing a legal case against the broker and the BUYER and the buyer is not responding to calls or emails.
What are the legal cases for this?
The broker must sue the Buyer for the cheque and oblige them to deposit the cheque.
It remains the broker's responsibility since the broker is the escrow for these two cheques and the responsibility shall still be open until the cheques are delivered.
A separate claim against the buyer must be initiated or the 100k will fall into the broker's debit.
