Questions & Answers
Questions & Answers
3 available 3 • View allIs an MOU still legally binding to parties after its expiry?




3
Q: Dear Sir/Madam,
We are at the final stages of the process, with our MoU expiring while waiting for the NOC. All cheques have been issued and shared.
In the MoU, we have a couple of additional conditions regarding the seller's obligation to obtain the NOC and a penalty of 10% for defaulting on either side.
If the seller decides not to continue with the process and not renew the MoU, does the expired one still legally cover the buyer?





+1
Feb 19, 2024
912
If I wait until the MoU expires, will the apartment purchase auto-cancel?


1
Q: Hello, Legal Advice Middle East
I am writing to seek your advice on my ongoing process of buying an apartment in Dubai Marina. I have signed an MoU with the seller, it is valid until 21 May 2024.
I have done the valuation process but the result was not reaching the selling price at all so I couldn't proceed with the mortgage. In good faith, I was seeking another way and was willing to conduct a 2nd valuation and pay for it again, and still, the result came out unfavorably again for the 2nd valuation.
This means I cannot get the mortgage from the bank at 80% of what I am hoping for. Therefore, I would like to ask the seller to either sell the apartment to me at the valued rate or cancel the MoU altogether and not proceed with the sale.
My questions: Can I just wait for the MoU to expire on 21 May without doing anything?
Would this cancel the MoU automatically if it's reached expiration?
Can the seller sue me and get the 10% deposit cheque amount?
What would you suggest I do in this case?



Apr 26, 2024
547
Can the MOU with the property buyer be extended after expiry without my approval?
2
Q: Hello,
I have signed an MOU without any deposit and the MOU expired today. The broker and buyer did not turn up to close the deal and the MOU expired today.
I spoke to another broker but he said that while raising Form A, it's showing Contract F exists.
Earlier it was showing to him Active Contract F exists but now after the expiry of the MOU, it is showing that Contract F exists.
How can this expired MOU be still effective?

Jul 12, 2023
1276
Laws & Regulations
2 available 2 • View allLaw No. (9) of 2009 Amending Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 2
The provisions of this Law supersede articles (2) and (11) of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.
Apr 12, 2009
3140
Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 1
This Law establishes interim property register in which sale contracts, off-plan sales, and other off-plan legal dispositions of real property are registered prior to inclusion in the property register maintained by Dubai Land Department.
Aug 14, 2008
4853

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