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: 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?

Q: I signed an MOU for purchasing a property from the seller. It has now been close to two months, with no progress. The tenant at the seller's property is not allowing time for valuation purposes. And now the seller is saying it's not his problem and is not willing to pay the 10% agreed as per the MOU. There's a specific clause in the MOU as below: "In the event that the 'seller' fails to complete the transfer on the agreed date due to his own act or omissions, then the full deposit will be refunded to the buyer, and also the 'seller' agrees to pay the same deposit amount to the buyer as a compensation for the loss of the said property unless they agreed amicably to different terms or dates."

Q: Dear Sir/Madam, I am a registered broker, and due to some system issues, I'm unable to log in to my broker application. I kept calling the land department, but nobody responded in time. This is why I couldn't extend the MOU, and it expires on Sunday. Will it still be valid on the next working day for transfer if both parties mutually agree? Secondly, how can I activate it if I'm unable to access Dubai Rest? And is activation still required if it expires one day before the transfer?

Q: We have an MOU which states the extension will be ‘thirty (15)’ days. Which date is valid? Fifteen or thirty? It says this in both English and Arabic. We approved an extension request, but did not get a new MOU, and do not see it on any website. Is the 30-day extension automatic, so we won’t get a new document?

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.