Q: This is to report that I paid a 10% security cheque of the property value as agreed upon & accepted by the owner to sign the MOU/FORM F. But the real estate agent told us that there is some technical issue while generating the MOU document with land and need to update the title deed. As I have a pre-approved bank loan, the real estate agent informed me to proceed with property valuation and confirmed meanwhile the documents will also get updated with DLD. After waiting for almost 2 weeks when we asked to generate MOU, the agent told the seller to back out & wants to sell at a higher price. It was delayed by the broker & seller for not signing the MOU/Form F & backing out after almost a month should be considered unlawful. As agents, they should secure the rights of both parties, in this case, where I was not at fault as the buyer, and the agent took their own time to find a new buyer at a higher price. How can we take action against them?

Q: Dear sir/madam, I signed an MOU to purchase a property. The MOU was signed by the POA holder of the seller on hard paper. We have been following up with the seller agent and he was keeping us up to date for nearly a month that the NOC is in progress. Last week when the MOU period expired, the agent informed us that the POA issuer has decided not to sell as he has another offer. I asked the agent about the MOU and the agent said MOU has no value as it is on paper and not in the Dubai Rest application. Questions: Can I enforce a paper-based MOU (Form F)? Or due to new rules, it is no longer valid and we made a mistake? The MOU was for one month and it is about six weeks since we signed the MOU. Appreciate any advice!

Q: Hello, We have signed an MOU in Dubai to purchase a property. The property is under 3 names (Mother, and her two sons, both minors). The MOU has been signed by the mother 3 times (as co-owner, and then as a legal guardian of her two kids). She then went to court to ask the judge for authorization to proceed with the sale for her kids. Should this have been done prior to signing the MOU? The case has been rejected by the judge since there was no specific clause/condition in the MOU for obtaining approval from the judge. Is the seller, at least the mother, liable for the penalty of not being able to complete the transfer due to her own actions as stipulated in the MOU (10%)? Thanks a lot.

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: Hi, I have a situation where I signed an MoU and gave my security deposit to the seller's agent. However later, the bank valuation of the property is lower than the selling price. On my MoU, it has a clause that “the buyer has a right to cancel/negotiate if the bank valuation is not the same as MoU.” I tried to negotiate, however, we didn't agree on the price so I asked to cancel. Now the agent is threatening me that they will not cancel the MoU and that will deposit my cheque. Later I also came to know that the person I am dealing with is not the same person whose name is mentioned as a broker in the MoU. The agent I am dealing with is constantly messaging me with threats. I decided not to speak to him and instead, I wrote an email to the broker whose name is mentioned on the MoU but received no response. I am on a very tight timeline as I need to vacate my apartment in 3 weeks, I found another unit but I don't know if I can pursue this while the initial MoU still not canceled. Please, I need advice.

Q: We signed an MOU in December'23 and it expired on the 9th of Feb. The buyer has got the manager's cheque ready but there is a long delay from the developer's end in issuing the NOC. We are getting better offers now for our property and we don't want to extend the contract. Can we do that or we cannot refuse to extend?

Q: I signed an MOU for buying a property that is already evaluated and the mortgage paperwork was started by the bank. The seller found excuses for health issues to fulfill the signing required liability letter and buyout documents. The MOU will expire on 23/03/2024. I will request the seller to extend the MOU due to being non-collaborative in providing the documents. "Should this agreement be determined for a non-performance or negligence of any terms of this agreement by the seller, or for any reason attributable to the seller, the seller understands and agrees that the buyer has the right to obtain the security deposit amount. The buyer shall not be entitled to take any further recourse against the seller for any compensation of damages/losses that exceed this amount. The seller shall deliver copies of the SPA, floor plan, statement of service charges, and Title Deed. " If the seller refuses to extend the MOU, do I have any right to claim any compensation due to increased pricing on the market? T.

Q: Dear Sir/Madam, I am a seller. I have signed Form F, but now I want to back out. What options do I have to avoid paying the 10% penalty?

Q: I made an offer and signed Form F for a property purchase. My decision was based on the property assessment as an End Unit and its capacity to extend the living room to my requirements. The two agents (buyer and seller both from the same agency) confirmed that a living room extension was possible at a fee payable to Emaar. I was ok with the fee. I made an offer based on this information and signed the Form "F" prepared by the agents. Later upon receiving the CAD drawings, it was noted that Emaar would not give NOC as the living room walls were structural. I am an end user and I can't accept this unit for the rest of my life as it doesn't meet my needs. I want to get out of this Form "F" as my agent misled me (doesn't matter if intentionally or unintentionally). The problem is agent is rewarded 2% for misleading me and I am facing a penalty of 10%. it is only 3 weeks into the deal and 5 weeks till signature. Can I get out of this legally and agent find a new buyer for the seller?

Q: Hi, I need some guidance regarding a property transaction that is not progressing as expected. My broker initiated a manual Memorandum of Understanding (MOU) between me (the Buyer) and the Seller, with an expiry date of 01/02/2025. Within this period, I successfully arranged the bank mortgage, property evaluation, and NOC. However, the broker started giving excuses, such as the seller being hospitalized. Later, the broker attempted to arrange a Power of Attorney (POA). However, after that, they started ignoring my messages and calls. It now seems like they no longer intend to proceed with me, and the MOU has already expired. Meanwhile, my bank EMI has already started, and I have paid two monthly installments. The broker is still unresponsive. I have raised multiple complaints through DLD RVS against the broker, but the response has been very slow and unsatisfactory. I’m feeling stuck and financially burdened. Please advise

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.