Month: June 2017

cheque-blog

Cheques

There has been much discussion relating to the issue of cheques in the UAE, particularly when related to security cheques. Historically, this has been a bone of contention for many where security cheques have been banked where the drawer would contest that it was done so correctly. A cheque can be made ‘conditional’ meaning specific requirements should be met before it can be encashed. If the drawer fails to fulfill any of the required conditions then he or she won’t be able to encash the cheque (note of caution, it will be valid after its due date). Below are some points you should know about cheques,

1- According to new rules, cheques are valid for 3 months from the date of issue.

2- The period to register a ‘bounced’ cheque complaint can be upto 5 years beginning from the day the drawer issued it to the beneficiary.

3- If the holder of the account signs his cheque and leaves it blank for the amount to be drawn and the due date to be entered, they are tacitly authorizing the beneficiary to fill those details in as required.

4- The person signing a company cheque is legally responsible for its validity even after he or she leaves the company.

5- Alteration of cheques is strictly forbidden by banks to avoid fraud.

6- In the event not enough funds are available in the account for the amount of an issued cheque, a request can be made to pay the remaining partial amount to the beneficiary

7- The cheque, if bounced can be considered a criminal act. This includes insufficient funds in the account, deliberately writing the cheque in such a way as to make it invalid, making an order to the bank not to make a payment or issuing a cheque from a closed account.

8- If you lose any of your cheques, you should use the stop payment facility offered by the banks to avoid issues arising from anyone misusing them.

property-blog

Laws relating to Property in UAE

The relaxation of the law allowing expats to purchase property and resulting boom in property demand and prices in the mid ‘noughties’ was shortly followed by the infamous 2008 collapse of the market. The subsequent cautious recovery highlights the complexity of UAE property law and the requirement to exercise buyer caution more widely appreciated.

According to UAE law, you may buy a property from a developer ‘off-plan’ by paying a 10% to 15% down payment with the balance payable over a period determined either by milestones in development or even, in some cases after the completion and handover of the project. It is imperative you ensure that the developer you are committing to is registered with the Dubai Land Department and that any payments are made to an escrow bank account.

Understanding the documentation involved and what rights and protection it offers all parties varies depending on the quality of that documentation. Make sure you fully understand the commitment and expectations before signing these documents.

If you choose to employ the assistance of a broker in making a purchase (or indeed if one is forced upon you by the developer), you will need to clarify that they are registered with RERA. You can do this by asking to see their ID card or simply visit the Land Department for verification.

Another important document in a property transaction is the Sale and Purchase Agreement which will form the ‘contract’ of your commitment to purchase as well as the parameters and commitment for the developer to build and deliver the project.

Ensure that the agreement clearly outlines and determines the date for completion of the project, actual milestones to be reached to trigger any payments and the penalties and exit clauses if these are not met. You will also need to understand which court is authorized to hear any dispute should future problems arise.
As purchasing a property is one of life’s ‘major’ purchases, please engage the assistance of professional legal counsel to protect your investment.