Questions & Answers - Legal Advice Middle East

Joint mortgage

Q: My wife and I are purchasing a property in Dubai which we will own jointly as per our wish. Our bank -- which provides the 75% financing -- requests that the loan should be in the name of myself and my wife jointly. Is it a regulatory requirement or could I go with a loan in my name only? (as monthly revenues comes from me and I would like to protect my wife) Also, the bank wants us to have a joint bank account. Is it a regulatory requirement or can we continue to use our existing separate bank accounts, one for me, one for her (both with the same bank)? Thanks.

What takes priority: contractual agreement or law?

Q: I purchased a commercial shop and seller left Dubai immediately after that. There`s loan with the bank in name of shop. 1. Fed Law No.18 of 1993 CL 47(1) says that the person upon whom the title to the business premises has devolved shall remain liable for the debts, if the creditors of such debts submit a statement thereof within the said prescribed period and........ 2. Clause 47 (3) says: Furthermore, the disposing party shall remain liable for the debts related to the business premises and which have arisen prior to the notification of the disposal unless he is discharged therefrom by the creditors. What is the difference between the two? Our sale agreement CL 8 says First Party (seller) bears all obligation owed by the Sold shop in favour of others including rents, wages, salaries, fees, taxes, fines .... and all other expenses related to the Shop until the date of registration of sale with the competent authority. What takes priority, sale agreement or Fed Law and who has liability for the loan?

What to do if your new employer withdrew the employment offer

Q: I got an employment offer from one of the construction companies from Dubai after the personal interview. I signed the employment offer which I received through email and sent back. Now, after 20 days, they withdrew this offer as per their management decision. I am working in Qatar and I already resigned from my job, and next week I have to leave Qatar. I don`t know what to do. Is there any chance to claim it legally?

Bail application

Q: How to get bail in a cheating case if the online prosecution bail request is rejected?

Termination of tenancy upon expiry of the rental period

Q: I want to vacate my flat when the contract expired. I have a flat in Dubai, I rented the flat last year in August through estate Agent, as I am not living in UAE but in the UK. I am not familiar with the real estate Law in UAE if I intend to give notification to the tenant to vacate the Flat in August when the contract expired. But Tenant informed me that they will not leave, and they have the right to stay 2 years! And they`ve gone deal with RERA regulations! The tenant was giving several times wrong cheque... Have really the tenant such right and what about the Landlord? Thanks.

The cost of drafting a Shareholder's Agreement

Q: How much would it cost to create shareholders agreement for a startup in Dubai?

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Fake university degrees

Q: Over 2 years ago I was awarded degrees from a university in the USA based on my experience. As the process continued I suspected they were fake so I tried to stop the process. In the last 2 weeks I am receiving calls from people claiming to be from Foreign Affairs and Ministry of Education in Abu Dhabi saying I am in trouble and the call always ends up with the university demanding money to complete the attestation process. I do not want these degrees and have never used them. If I report this to the UAE Authorities, will I get myself in trouble? I am worried.

Recovery of small amount from the debtor

Q: We had rented out 2 x ISO tank containers to a local company in Dubai, who used it for transportation and storage of White Spirit and/or Ethanol. The rent rate was US$13/tank/day and they stopped paying for many months. After repeated emails, and constant pressure and personal visits, they returned the ISO tanks in damaged condition. Now the total unpaid rent, transportation cost and damage cost, is approx. AED 25,000 total. What is my legal remedy? What are my options? Will it be worth it to litigate? What is your advice? Thanks.

Mediation as a way to resolve legal issues

Q: I am a tenant in a commercial building in Bur Dubai. My neighbor has put her medical clinic signboard on the outside wall, right outside our door, while the wall is completely within our designated area. I have spoken to the management company in the building, and they do not want to get into any complication, so they are simply avoiding and ignoring. The medical clinic patients mistake our shipping company as a clinic and enter, and because of this signboard, my office looks like a clinic from outside, and is very unprofessional for a logistics/shipping company. What should I do? I agree it is a small matter, and I`m willing to compromise and allow my neighbor to have half the wall, but right now its quite unfair on us and I want a resolution to this. Kindly advise.

Arrest in GCC countries for debts in the UAE

Q: I have 3 bank debts in UAE and they already filed the case against me. Is there any possibility that arrest will happen in any other GCC countries? Right now I am working in Qatar.

Enforcement of rental contract in case of its early termination

Q: Our tenant has requested an early termination of their contract on our property in Dubai. The agreement provides for a penalty of two months on early termination. However, the real estate agent managing the property on our behalf is unwilling to pursue this with the tenant. Further, they are refusing to give us a pro-rata refund of the management fee. How can we enforce the contract with the tenant in regards to the early termination penalty and what rights do we have to recover a proportion of the management fee?

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Basis for indemnity payment calculation in Bahrain

Q: How to calculate indemnity payment? My salary is directly banked into HSBC Bahrain monthly which includes my basic pay, housing allowance and transportation. The question is if the indemnity payment calculated based on the amount banked into account or only on basic salary? I have been working with this consultancy firm since 2008 and they recently gave me termination letter (one month notice). What is my entitlement for settlement?

Eviction of tenant due to non-payment of rent

Q: Dear all, Do you have a model of eviction letter for non-payment of rent? How to notify the tenant?

Non-disclosure agreement

Q: I am in the process of setting up my consulting firm in the UAE. I will be using the services of freelancers abroad. I have few questions, I will be getting the freelancers to sign an NDA. What I am unsure about is in the NDA do I only state the following: "This letter and the relationship between the Recipient and Hedsor Advisory shall be governed by, and construed in accordance with, the laws of the United Arab Emirates and any disputes arising in connection with the letter shall be settled before Dubai Civil Courts". If an issue arises where an individual has breached the terms of the NDA and they live abroad, is the case heard in the country the individual is residing in or Dubai where the business is? Is the above wording suffice or do I also need to mention the laws and courts of the country where they reside? Is generic NDA sufficient or do I need to get a custom one drawn up? Regards, Alia

Social allowance in Bahrain

Q: What is the social allowance that need be added to the basic salary to arrive at indemnity salary ref. article 47 of the Bahrain labor law?

Early termination of employment

Q: Dear Sir / Madam, I am working as Project Manager in a consulting firm. At the end of January, our client requested some of the firm`s PMs to be replaced, including me. In order to keep a clean record, I agreed with my company to give them my resignation for family reasons, with a 3 months notice period as per my contract. The resignation was given on 20 January and the last working day would be 20 April. Last Thursday (9 Feb), my company requested an earlier termination, in order my replacement to arrive at work. I accepted their request and when I went to the head office, I was informed that they are not willing to compensate me for the rest of my notice period, until 20 April. Since the amount is equivalent to salaries of 2 months and 10 days, I seek your legal advice on how to deal with that. Best Regards