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?

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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.

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Sunday, June 7, 2020

Rules on Wills for Non-Muslims in Dubai

After the approval of Will registration for non-Muslims in 2016, legal consultants in Dubai have been reminding their clients to register their Wills to protect their assets. Wills are crucial legal documents that contain the plans of testators regarding their assets and their beneficiaries.

Almost 8 million expats are residing in the UAE who have either set up their business in the country or invest in property to call it their home. This is why the government and the Dubai International Financial Centre (DIFC) courts recognized the need to establish an innovative legal solution for non-Muslim residents or investors.

Many expats fail to put measures in place to protect their families and their assets. All it takes is to appoint legal firms in Dubai specialized in drafting Wills to arrange the proper legal documents not just for your benefit but for your loved ones as well.

Here are the rules on Wills for non-Muslims you should know:

Asset distribution. The presence of a Will ensures that your assets are distributed as per your instructions. Many expats are unaware that in the absence of a Will, the UAE courts are obligated to apply the Sharia Law when it comes to the distribution of your moveable and immoveable assets. This will make the transferring of your assets after death costly, time-consuming, and filled with legal complexities for the person you left behind.

As per Sharia Inheritance Law, the distribution of assets shall be towards legal heirs and descendants, who may be composed of parents, siblings, spouse, children, and grandchildren. As for non-Muslims, they are given the option to choose not to apply the Sharia Inheritance Law in terms of the distribution of their assets.

divorce in UAE

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Monday, June 1, 2020

Real Estate Litigation in Dubai, UAE

Property lawyers in Dubai readily provide help to clients facing problems with residential and commercial real estate transactions. Rentals for commercial properties continue to be in demand as the preferred arrangement for business accommodations in the Emirates. Due to the high volume of transactions, the UAE government has implemented measures to regulate tenant-landlord relationships. Unfortunately, litigation can still arise.

Real estate litigation is a tool used by, and against, buyers and sellers, landlords and tenants, and real estate brokers and agents. It can happen to just about anyone; whether one is buying a home or renting a commercial space, each transaction has the potential to end in a lawsuit. Thus, it would be best if you had an experienced property attorney who understands the real estate laws in Dubai to help you make informed choices and avoid litigation.

Here are the three most common causes for real estate litigation according to legal firms in Dubai:

1. Failure to disclose a defect on the property

Real estate renters or buyers are expected to do their due diligence in inspecting a property they want to rent or purchase. But there are also certain disclosure requirements. Landlords are obligated to disclose defects in a property such as a mold problem, leaks, poor construction, non-permitted additions, and more. If renting or buying a party can prove that the seller or agent is aware of the defect and fails to disclose it before closing, it can be grounds for a lawsuit.

2. Breach of contract

In every real estate transaction, the terms and conditions associated with the sale are disclosed in the contract. It covers the details related to title clearance, assets included in the transaction (appliances, furniture, etc.), closing date, financing, and more. Failing to comply with the terms outlined in the agreement can be grounds for litigation. For claims of breach of contract, the wronged party must prove that they have fulfilled their contractual obligations while the other party has not. The wronged party may demand compensation for any losses incurred as a result of the breach.

Are you in a legal dispute? Or wondering if you have grounds to file a lawsuit?

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Saturday, May 16, 2020

How do I file for divorce in UAE?

According to reports in UAE daily newspapers, divorce rates in the UAE are amongst the highest within the region. In Dubai alone, 1,129 divorces took place in 2016 - more than three per day. The figure is even more alarming for Emiratis, who make up less than one-fifth of the population but account for over one third of all divorces.

Reasons for the high rates of divorce in the country may include:

marital infidelity
poor communication
job loss or financial strain
social media
religious and cultural differences
other ways of thinking about marriage
generational change and unrealistic expectations

The Sharia Law in the UAE

The Sharia law governs Islamic marriages. If both husband and wife are Muslims and residents in the UAE, Sharia/UAE law will most likely be applied to their divorce. The same is likely if the husband is a Muslim and the woman is a non-Muslim.

On the other hand, if the parties wish to have the law of their home country applied, they may petition for this before the court. Article 1 of the Federal Law no. 28 of 2005 for Personal Affairs governs divorce proceedings in the UAE. Lawyers in UAE base their approach and consultation on this article. Article 1 state that relevant parties may ask to apply their own laws to personal status matters. The article also grants that the law of the state of which the husband is a national at the time the marriage is contracted shall apply to the effects on personal status and the effects with regards to property resulting from contracting of the marriage.

Law firms in Dubai have to have knowledge of the respective home country laws. Whenever the law of the parties' home country fails to cover an aspect of the divorce procedure, the courts hold discretion to apply the UAE law. In these particular cases consulting an attorney in Dubai is best way forward, especially if child custody is involved.

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Tuesday, May 5, 2020

Renewing Tenancy Contract in Dubai? Here are Rules You Need To Know

Dubai is known to offer a wide selection of amazing residential options from villa communities to reasonably priced apartments. So, it comes to no surprise that people all over the world choose to establish a new home in the commercial capital.

Nevertheless, property lawyers in Dubai do encounter disagreements between tenants and landlords on matters related to renewal of leases. Thus, the government has provided strict regulations addressing tenant’s rights and concerns.

The renter and landlord are required to abide by the Real Estate Regulatory Agency (RERA) Dubai Rental Law. This decree was passed in order to regulate the relationship between the two parties. A tenancy contract is a document containing all crucial information regarding your rented property. It is usually valid for one year, after which they can be renewed for another year.

Any property attorney would suggest paying enough attention to the laws governing the contract to avoid uncomfortable situations later on. Here’s what you need to know:

1. 90 days’ notice

Both the tenant and landlord are required to give the other party a 90-days’ notice for non-renewal of tenancy contract, unless otherwise agreed. As per RERA index, this rule also applies if the landlord wants to increase the rent. Not giving a notice beforehand means the landlord cannot increase the rent.

In the event that both parties do not serve any notice within the allowable time frame, then the contract is automatically renewed. If this is the case, the contract should follow the same rental price and conditions as stated in the previous year.

2. 12 months’ notice

To evict a tenant upon expiration of a contract, the landlord must provide a 12-month written notice prior to the eviction date, sent through registered mail or notary public. This applies if the landlord is planning to sell or use the property for personal reasons, or for reasons concerning first-degree relatives.

If the landlord wishes to end the contract before the stated expiration, he can do so with conditions according to Article 25, clause 1. The valid reasons being - the tenant not paying the rent due, or the tenant is caught subletting the property. The landlord must submit the notice via the notary public or registered mail, and state one of the reasons.

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Sunday, March 15, 2020

Why Expo 2020 is Good for New Businesses in Dubai?

If you’re one of the millions planning on a company formation in Dubai, here’s why you should mark October 20, 2020 on your calendar.

The booming city of Dubai is set to host Expo 2020, which would be a first for the Middle East, Africa, and South Asia region. More than 200 nations, organizations, businesses, and institutions are expected to participate in this once-in-a-lifetime entrepreneurial celebration.

The World Expo, officially known as International Registered Exhibitions, is one of the oldest and biggest events in history. It is organized every five years and welcomes every country in the globe to showcase the best of what they have to offer. This year, it will run from October 20^th, 2020 to April 10^th 2021 and will be open seven days a week.

Will the upcoming Expo 2020 boost new businesses?

Business setup consultants in Dubai think so! It is believed that around 80% of participants will bring business delegations, host unique business programs and look forward to enhancing global trade. This will provide the opportunity of a lifetime for start-ups and international conglomerates alike.

With Expo 2020 expecting to attract up to 25 million visitors in just six months, it will shift UAE’s tourism industry to the next level. This is an amazing chance for new businesses to connect with potential customers face-to-face and build relationships.

Dubai being chosen as the host for the global gathering also speaks volumes. It only proves that the commercial capital has been considered an international player and specialist in tourism, hospitality, and retail. This exposure alone could boost other sectors of the market as well, including new businesses.

The Expo site which covers 4.38 square km will become District 2020 after the event and will feature office and residential spaces, cultural attractions, parks and leisure amenities. These improvements will add lasting value to the region and give new businesses a boost.

An event of this scale will also bring in a surge in employment. Expo 2020 is estimated to create more than 270,000 new jobs in the UAE in order to cater to millions of visitors. This gives new businesses access to a far greater pool of skilled workers and opportunities to hire the best of international talents.

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