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: 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: Dear Sir, Please be informed that I contacted one of the real estate agents in Sep 2022 for a purchase of an apartment in Abu Dhabi. MOU signed with seller/agents in Oct 2022. The subject apartment was under lease and a tenant was staying there. I contacted my bank for a mortgage and the bank requested access permission for valuation. However, the agents informed me that the tenant is out of the country. And later once the tenant was back in the country, I requested agents for further permission. After multiple tries, the tenant provided the bank with access for valuation. I had no direct contact with the owner/seller. I paid the bank valuation fee. Once approval came from the bank, I informed the agent. I got a reply that the seller does not wish to proceed with the MOU. Then requested agents to return the agency commission fee, which I paid at the time of signing the MOU. Ever since I am behind the agency to return my amount. However, agents have not yet returned the amount to date. Appreciate your necessary legal advice. Thank you. Regards 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: Dear Sir/Madam, If you have signed Form F with a buyer, can you keep your property on the market and continue to talk to other buyers in case you get a better deal? Is it against the law?

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.