Signed MOU to buy property, but tenant refuses to leave. Can I cancel?

Dear Questioner,

The ownership of the property is transferred with rent, and there is no harm in that.

You can warn the tenant to vacate that you are the new owner of the property or dictate your conditions to him if you want to rent it under new conditions.

The matter is different if it is stated in the memorandum of understanding that you will receive the property vacant from a tenant.

Can you share the concluded document to inform you correctly of what you should do?

For further inquiries about your topic, you can reach our office or contact us via WhatsApp or email.

Dear Questioner,

Thanks for your inquiry!

Regarding the above, we would like to inform you that, according to UAE law, the MOU (Memorandum of Understanding) is a legally binding document and both parties are obligated to fulfill their obligations as stated in the MOU.

In this case, the MOU states that the property will be vacant on transfer, and it is the responsibility of the current owner to ensure that the property is vacant before the transfer takes place.

If the tenant refuses to vacate the property, the owner should take the necessary legal action to evict the tenant.

In this case, the owner has already filed a case with RDC (Rental Dispute Center) and a hearing date has been given.

If the tenant does not show up for the hearing, the RDC may issue a judgment in favor of the owner, and the tenant will be legally obligated to vacate the property.

As a buyer, you have the right to request the current owner to provide proof that they have taken necessary legal actions to evict the tenant.

If the owner fails to provide such proof, you may have the option to terminate the MOU and claim for any damages incurred.

However, if the tenant vacates the property before the transfer takes place, the MOU can be fulfilled as per the agreed terms.

It is important to note that the transfer of property cannot take place if the tenant is still occupying the property.

In conclusion, it is advisable to communicate with the current owner and discuss the situation. It is necessary to seek legal advice from us to understand your rights and options.

Please feel free to contact us via email or WhatsApp for any further inquiries.

Greetings,

Dear Questioner,

It will completely depend upon the terms and conditions of the MOU.

If the MOU has a particular clause regarding the eviction of the tenant on a particular date which is before the MOU date, then it will be the responsibility of the seller to evict the tenant.

If he can not complete this eviction, then the buyer has no liability to continue with the transaction. We will discuss all the possibilities in detail.

Kindly share your WhatsApp number to proceed further.