Dubai Lawyers: July 2020

Sunday, July 12, 2020

Breach of Real Estate Contract

Buying or selling real estate is a serious business. It involves a lot of money and a valued property. Thus, it is essential to talk to a legal consultant in Dubai to know how to put legal safeguards in place.

A real estate contract provides protection for both the buyer and seller. It is a binding agreement between two parties regarding the transfer of a home or property. The deal needs to meet specific requirements to be valid - the purchase agreement must be in writing, contain an offer and an acceptance, the purpose must be legal, and there must be an exchange of things of value (money for the property).

A breach of contract occurs when one of the parties to the contract fails to perform any of the stated terms. Upon signing the contract with the buyer, it’s reasonable to expect that all responsibilities will be fulfilled. But a buyer can break a contract for a myriad of reasons, mainly if the cost of going through the contract is more than the cost of penalties for breaching it. It’s best to be prepared by finding the right lawyer in Dubai who can help you understand the process.

Here are some ways that a breach of real estate contract by a buyer can occur:

● The buyer fails to obtain adequate financing before the closing date.

● The buyer is unable to sell their current home before closing on the new home, and therefore cannot go through with the purchase.

● The buyer fails to deliver the deed of the property correctly.

ARE YOU IN A LEGAL DISPUTE? OR WONDERING IF YOU HAVE GROUNDS TO FILE A LAWSUIT?

Check out some informative articles that may help you:

Motei and Associates has the finest real estate lawyers Dubai has seen, offering disputes resolution and general corporate, commercial transactional services. Give them a call today at +971 4 435 5959.

Sunday, July 5, 2020

COVID-19: The impact on real estate

The landlord and tenant relationship, as well as the negotiating positions of either, can often be tested by external factors, with the current pandemic being a prime example. It’s the best time to consult property lawyers in Dubai. The measures executed to diminish the spread of COVID-19 virus have plunged the real estate sector into uncharted waters. Rentals have been impacted by the closure of restaurants, shops, bars, and other public establishments. Commercial properties are no exception due to the 'work from home' initiatives and curfews implemented.

Tenants are going through significant changes in their job and salary status. As a result, landlords are being bombarded by requests and demands on rent relaxations, waivers, and discounts. This leads to questions like, ‘Do landlords have to postpone or decrease rental payments due to COVID-19?’. Considering the setbacks in business or employment, 'Can tenants terminate tenancy contracts immediately without penalty?' There are key legal considerations when it comes to amending lease arrangements. Any real estate lawyer in Dubai will point out these policies:

Can tenants apply force majeure to excuse them from paying rent?

Tenants can refer to their lease for a force majeure clause. It stands for the proposition that the tenant’s obligations to pay rent under the contract can be excused when a “force majeure” makes such liability impossible, impracticable, or illegal. Force majeure is often thought of as an ‘act of God’, a natural occurrence like an earthquake or hurricane, or a particular circumstance beyond reasonable control.

If this clause exists in the lease, both parties will have to review the precise wording to understand whether the pandemic falls within the contractual definition. Only then can it excuse the non-payment of rent. In the absence of a force majeure clause, both parties might have to consider invoking a statutory provision. The UAE Civil Code provides various articles that deal with force majeure and unforeseen events, including Article 273, 294, and 782.

ARE YOU IN A LEGAL DISPUTE? OR WONDERING IF YOU HAVE GROUNDS TO FILE A LAWSUIT?

Check out some informative articles that may help you: