Q: Hi, I hired a real estate agent from Dubbizle Abu Dhabi. We reached a consensus of AED6,500/- commission for his services. Once I liked the property, I gave AED5,000/- cheque as security. Later, after signing the tenancy contract I gave cash AED5,000/- to him. As AED1,500/- was pending, I didn't take the cheque back. Later from the landlord, I got the information that he took an extra commission of AED5,000/- from the landlord as well by telling him that we are relatives and he is not charging any commission from me. So the landlord increased the rent by AED5,000/- and once the payment was made to the landlord (single payment by my employer); landlord had already given AED5,000/- to the agent. Later the agent called me to ask for remaining AED1,500/-. At this time I said 'no' as he has already made a double commission. I forgot about the cheque. Today I received a message from my bank that the cheque has been encashed and AED5,000/- has been deducted from my account. What are my options now?

Q: Good Afternoon...... Can I write "Security Cheque" on the face of the Cheque? What legal protection does it give me from the landlord or from the bank? Will the bank honour the security cheque across the counter or when it presented in clearing?

Q: I paid my landlord in cash 10 days in advance and he still deposited my rent cheque. My perfect AECB score maintained for 9 years is ruined. How can AECB be reversed and compensated if AECB cannot be corrected? The cheque value is AED 16,250 and I have sufficient evidence + receipt from the landlord.

In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.

An interview-format article covering the topic of loans and bounced cheques in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

As the civil and commercial transactions in the UAE have been growing rapidly, and due to replacing cash with other financial instruments such as cheques for big amounts of money, this had caused some hiccups at times leading to criminal and civil consequences on the person who defaults on fulfilling obligations.

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.

The provisions of this Federal Decree-Law No. 50/2022 Issuing the Commercial Transactions Law, known as the "New Commercial Code" governs commercial transactions in the United Arab Emirates. The New Commercial Code repeals the previous UAE Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law.