Questions & Answers
Questions & Answers
8 available 8 • View allCan the bank deposit my security cheque if I fail to pay 3 loan installments?
9
Q: Hello,
I am 3 months behind on my bank loan with FGB. I have told them that I can pay up 2 months on THURSDAY 2nd Nov 2017. The loan is in my business name and they are threatening to deposit the security cheque of 330,000 Dhs for the outstanding full balance of 250,000 Dhs.
Can they do that? Is that even legal?

Oct 29, 2017
8206
What to expect in a police case due to loan default
10
Q: Hi,
I took a loan from a UAE Bank for AED 450,000, I now have AED 230,000 of the loan outstanding.
Due to delay in my salary, I missed 3 instalments and the bank deposited my security cheque for 600,000 AED and it bounced. My bank filed a case with the police 10 days ago.
I went to issue a visa for my daughter and was informed that I can not complete the application as I have a police case for bounced cheque 10 days ago against me in Qusais Police Station.
I am trying to get refinance from my bank, assuming the refinance doesn't go ahead, kindly advise:
1- When would it be likely to get called to the police station (how many days typically after a case is filed).
2- When called the first time, am I likely to spend time jailed in a police station or can I walk out the same day if I surrender my passport.
3- Will a fine be imposed?
4- If this goes to court, what is the likely sentence?
5- Is my liability to the bank AED 600,000 or 230,000 AED?
I intend to pay in full over 2 years

Oct 11, 2018
9043
Is presenting a security cheque to force contract obligations an illegal act?

2
Q: I sold my company to a purchaser and I had bank loans. We signed a contract with two main conditions:
If he terminates me from Job, he will settle my loans immediately.
By June 27, 2017, he will clear my loans or transfer in his name. If he fails to do so, he will give salaries for the delay period.
He had given me one security cheque. When he didn't meet any of the above conditions, I had to deposit the cheque. After the cheque bounced I made a police complaint.
According to his lawyer, I was not supposed to deposit the cheque because it was just a security cheque. Now they are planning to file a case against me.
Please advise what to do, I don't have a job for the whole past year.


Nov 30, 2017
5784
Possible scenario in case of defaulting on a business loan
0
Q: Dear Ma'am,
I want to take a loan for business purpose, but if my business is no more working and I am not able to pay the monthly instalments, which type of punishment I have to face or what fines?

Mar 19, 2019
760
Defaulting on a business loan and possible cases


1
Q: I have 2 bank loan cases and it’s not a personal loan, it was a business loan. The amount on the cheques is 370k and 490k
But for 1 bank I have paid most of its amount, and according to me, there will be an outstanding amount of 200k.
What will be the consequences if we take the case to the court?



Aug 15, 2019
578
Expected legal actions for defaulting on a bank mortgage
1
Q: I have a property mortgage loan that I have paid for its instalments over more than 3 years without any failure. However, due to my financial situation, I will not be able to pay any more, because my income turned to zero.
I need to know the legal actions they can take against me.

Jun 26, 2019
985
Filing a case and repossessing the property if the client defaulted on an installment
1
Q: I have a mortgage of 1.3m with a bank. It is a lease and the property is registered on my name. At the moment, I live outside the UAE and cannot sell the property because of COVID-19. There is a 40-day delay with payments - 1.5 installment is due.
The bank sent me information to clear the outstanding amount within 1 day or they will start a police case and repossess the property.
Is a 40-60-day payment delay long enough to start a police case and repossess the property?
What can I do to avoid consequences? I can settle the outstanding amount within 15 days.
I plan to sell the property when the borders get reopened.

Jun 21, 2020
845
Should I fight a bank foreclosure in Dubai when the property covers the loan value?

1
Q: Dear Sir/Madam,
I have a loan secured against my property and the bank wants to take the property, which is almost the same value as the loan. However, the bank has initiated legal proceedings in Dubai Courts to obtain a judgment.
Should I contest the case if the value of the property can cover the bank loan?
Do you know how much the court fees typically are?


Feb 20, 2023
176
Legal blog
1 available 1 • View allMortgage of Movable Assets in the UAE: A Wanted Change 2
The UAE has taken a bold step toward legislating the mortgage of movable assets after it was completely regulated by the Civil Code. The Federal Law No. 20 of 2016 Concerning the Mortgage of Moveable Assets, which came into effect 90 days after it was published in the Official Gazette on December 15, 2016, was a welcomed change by lenders after it gave them the ability to secure their debts with movable assets.
Oct 20, 2018
2033
Laws & Regulations
1 available 1 • View allFederal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
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.
Dec 15, 1985
148357

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View allHow can I vacate my tenant if the rental agreement ends before the eviction notice deadline? 0
My Dubai tenant's rental agreement is ending by the end of September 2024 and the completion of 12 months of legally served Eviction Notice is the end of December 2024.
I have two questions:
(a) Can I send a rent increase notice 3 months before as the rent has increased as per the RERA rent calculator?
(b) The second question is, do I have to renew the rental agreement for 3 months (until December 2024) or not?
Thank you.
May 1, 2024
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How can I reach a settlement with the bank for a mortgage of a jointly owned property? 0
I have a jointly owned property in Abu Dhabi. The mortgage was defaulted on as I had to leave the property with my children following an assault by my ex-husband. He left the country in 2018 and never paid the mortgage.
As I was in the country, the bank filed a criminal case against me, and I was sentenced to 3 years. I won the appeal against the bank and then filed another criminal case a few months later in Dubai. Again, I won and paid a fine.
In 2019, the bank started a civil case against me and my ex-husband to have the property repossessed. However, at the time of the purchase of the property, there were no Title Deeds, the bank requires this.
I cannot give them the Title Deeds to sell the property and pay back the amount owed to them as my ex-husband refuses to provide a POA. The bank has filed another criminal case against me only for our jointly owned property.
I wish to resolve this and pay off the bank and receive any money left from the sale. How can I resolve this issue of the Title Deeds?
Oct 4, 2022
285
The procedures for filing for divorce on mutual consent 0
Dear sir/madam,
I am separated from my wife due to compatibility reasons. We got married in the Indian consulate in Dubai on December, 23rd.
We would like to file a divorce on mutual consent as soon as possible. May I get some advice here on the procedures?
Sep 13, 2022
675
My previous employer failed to pay my gratuity. Can I file a case 6 months after resignation? 0
My previous employer failed to pay my gratuity six months past now since I resigned, Is it possible to file a case against him after a 6 months period?
May 31, 2022
1275
Can a real estate agency hold a percentage of a property sale until transfer is done? 0
A real estate agency has signed an MOU stating that a 10% security deposit from the buyer and the seller will be kept in the real estate agency and will be released upon transferring the property.
The transfer of the property was blocked due to the court order.
According to my colleagues, the real estate agency is not a trustee and they are not allowed to have taken my security check in the first place, is this correct?
Jun 28, 2021
1264
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