Questions & Answers
Questions & Answers
4 available 4 • View allRight of the seller to claim the deposit from the buyer for breaching the MOU



5
Q: Hello,
I have signed an MOU where the buyer failed to complete the transaction as per the date of transfer plus the extension. Thus, the MOU expired. I have requested from the agency the 10% deposit cheque signed by the buyer.
They refused to give it to me and requested an extension without any penalties or price increase despite the market appreciation by 10%. What can I do to get the cheque legally from them?
I am already in a big issue because I already bought a bigger unit having in mind that my unit is sold. They are asking for an MOU extension but the prices went up and I request the fair price as per the market and they are refusing to pay the increase.
Appreciate it if somebody can provide me with feedback on these two points:
1- Can the agency hold the cheque and not give it to me? Aren't they violating the law here?
2- What can be done in this case and what would the next steps be?
Thanks in advance,
Regards,




Apr 4, 2021
2630
Can the seller force the broker to pay security deposit if the buyer breaches the MOU?
2
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?

Apr 12, 2023
788
Can the buyer get the security deposit if backs out in a property purchase MOU?

3
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?


Nov 8, 2022
1703
I entered into a MOU to sell my apartment and the buyer changed his mind. How to claim deposit?
0
Q: I entered into an MOU to sell my apartment but unfortunately, my agent didn’t collect the security cheque from the buyer’s agent at the time of signing the MOU.
Two days later, the buyer changed his mind and wanted to cancel the deal.
Now in this situation:
How can I claim the security deposit amount from the buyer?
Will it involve any legal process?
If yes, then how long does it take and how much does this cost?
Should I just cancel the deal with the buyer and move on with selling my apartment to another buyer?

Mar 6, 2025
74
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2 available 2 • View allOnline POA and Other Notary Public Services in the UAE 28
With the introduction of the new procedures for obtaining a power of attorney (POA) remotely in the UAE, after it was mandatory to appear in person in front of the notary public as a global rule to ensure the identity and intention of the person requesting a POA, we put between your hands this brief guide for how you get it done.
Jun 8, 2021
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Protecting Your Real Estate Brokerage Firm 3
Did you know that 225 establishments were fined approximately AED 77 million for flouting AML regulations? About, 50 entities’ operations and licenses were put on suspension in 2023-Q3 for failing to register in the goAML system. That’s alarming! Out of the said numbers, many were real estate brokerage firms.
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Laws & Regulations
4 available 4 • View allBylaw No. (85) of 2006 Regulating the Real Estate Brokers Register in the Emirate of Dubai 4
This Bylaw regulates the Real Estate Brokers Register in the Emirate of Dubai. No person may engage in real estate brokerage activities in Dubai unless he is licensed by the competent entities and entered in the register, which is maintained by Dubai Land Department.
May 30, 2006
4937
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
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.
Dec 15, 1985
148521
Decree No. (56) of 2009 Establishing a Special Tribunal for the Settlement of Cheque Disputes Relating to Real Estate Transactions 0
This Decree establishes a special tribunal with exclusive jurisdiction to settle complaints related to dishonoured cheques which are issued by a purchaser and made payable to a real estate developer, or those cheques issued by those with usufruct rights or with long-term leasehold rights.
Nov 1, 2009
899
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
33058

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