Q: I signed an MOU for buying a property that is already evaluated and the mortgage paperwork was started by the bank. The seller found excuses for health issues to fulfill the signing required liability letter and buyout documents. The MOU will expire on 23/03/2024. I will request the seller to extend the MOU due to being non-collaborative in providing the documents. "Should this agreement be determined for a non-performance or negligence of any terms of this agreement by the seller, or for any reason attributable to the seller, the seller understands and agrees that the buyer has the right to obtain the security deposit amount. The buyer shall not be entitled to take any further recourse against the seller for any compensation of damages/losses that exceed this amount. The seller shall deliver copies of the SPA, floor plan, statement of service charges, and Title Deed. " If the seller refuses to extend the MOU, do I have any right to claim any compensation due to increased pricing on the market? T.

Q: I decided to purchase a penthouse in Abu Dhabi. I signed an MOU with the seller through a broker. The seller had a mortgage obligation with the bank. The mortgage amount was slightly higher than the transaction amount. According to the terms of the MOU, I paid off the seller’s mortgage to the bank, covering the purchase amount, while the seller paid the remaining balance. Sometime after my payment, the broker sent me a Mortgage Release document confirming that the penthouse no longer had any encumbrances. Next, the seller was supposed to obtain the NOC, after which we would go to the municipality to transfer the title. However, the seller has not obtained the NOC! According to the broker, the seller is disputing the amount assigned to him for payment by the management company and seemingly intends to sue the company. It has already been three months since my payment! The broker says that the seller is willing to sign a court document that would ensure my guarantees. Is this true?

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."

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.

Provisions of this Law supersede articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai. 

The provisions of this Law apply to real property leased out in the Emirate of Dubai, including vacant and agricultural lands, but excluding hotel establishments and real property provided by natural or legal persons as accommodation to their employees at no charge.

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.