If I wait until the MoU expires, will the apartment purchase auto-cancel?

Dear questioner,

The basis of this transaction and its termination is the contract-F or MOU. Therefore, we need to review it to assess the possibility of termination.

According to your information, the property valuation is lower than the actual sale value, which is a valid point for termination.

However, we need to confirm this after review. If you need our assistance in reviewing it, please share your WhatsApp number.

Dear Questioner,

Thank you for reaching out to me regarding your ongoing process of buying an apartment in Dubai Marina. I understand the complexities involved in your situation and I'm here to provide you with guidance.

Regarding your questions:

- Waiting for the MoU to expire:

While the MoU is valid until 21 May 2024, simply waiting for it to expire without taking any action may not automatically cancel the agreement. It's essential to review the terms outlined in the MoU to understand the conditions for termination or expiration.

If the MoU does not specify automatic cancellation upon expiration, it's advisable to communicate your intentions to the seller in writing before the expiration date to ensure clarity on the status of the agreement.

- Seller's ability to sue for the deposit:

The seller's ability to sue for the 10% deposit cheque amount would depend on the terms outlined in the MoU. Typically, MoUs include provisions regarding the consequences of breach or non-performance by either party.

It's crucial to review these provisions to assess the potential legal implications of canceling the agreement.

However, if you have valid reasons, such as the inability to secure financing due to valuation discrepancies, it may provide a basis for negotiating a mutually acceptable resolution with the seller.

- Suggested course of action:

In this case, I would recommend initiating a dialogue with the seller to discuss the challenges you're facing in securing financing and the implications it has on the transaction.

You can propose alternative solutions, such as renegotiating the purchase price based on the valuation results or mutually agreeing to terminate the MoU. Open communication and negotiation are key to resolving such issues amicably and minimizing potential legal disputes.

I understand the importance of resolving this matter promptly, and I'm here to provide you with the necessary legal guidance and assistance.

Please feel free to reach out to me via WhatsApp or phone to discuss your options further and schedule a consultation.

Dear Questioner,

According to Article 2 of the UAE Civil Code, the parties to a contract are free to agree on its terms as long as they do not violate public order or morals. Therefore, the terms of the MoU will govern the relationship between the parties.

In this case, the MoU has a specific expiration date of 21 May 2024. If the parties do not take any action before this date, the MoU will automatically expire and the parties will no longer be bound by its terms.

However, if you wish to cancel the MoU before the expiration date, you will need to reach an agreement with the seller. You can propose to the seller to either sell the apartment at the valued rate or cancel the MoU altogether.

If the seller agrees to either of these options, you can then proceed with the necessary steps to formalize the agreement.

If the seller does not agree to your proposal, they may have the right to sue you for breach of contract. This will depend on the specific terms of the MoU and whether it includes any provisions for cancellation or termination.

In any case, it is advisable to seek legal advice from a lawyer in Dubai who can review the terms of the MoU and advise you on the best course of action. They can also assist you in negotiating with the seller and formalizing any agreements reached.