Month: January 2018

Duties of a Property Broker in UAE

Being a Property Broker in the UAE is effectively being the middle man between the buyer and the seller in relation to change of ownership of a fixed asset (a property)

As per property laws of UAE, the duties and responsibilities of a broker include:

a- Verify if the property title deed is genuine
b- Keep a record of all transactions with supporting documentation
c- Not be a part of or facilitate any transaction that is against the law
d- The broker and the developer are governed under a contract that should be registered with the DLD
e- The broker may take copies of the documents relating to the property for the transaction
f- Confidentiality
g- As per trusteeship rules, act as a trustee on behalf of the client
h- Carry out due diligence to ensure the developer is in good standing and is registered with the DLD
i- In the event of a breach of contract, as per law the broker should give up fees or claims
j- Where more than one broker is engaged, they are to be held jointly responsible for the transactions unless otherwise specified

Extradition Requirements in UAE

Extradition is the process of handing over the person to a country where he or she was involved in an illegal activity.

In order for a person to extradited from one country to another, the act the person is accused of must be considered a crime both in the country requesting the extradition and in the country the accused is in currently.

The process involves signing an agreement between the countries for the person to be extradited. This is done via Interpol by issuing what is known as a ‘Red Notice’. A common misconception is that Interpol track down and arrest individual but, this is not the case. If a red notice has been issues, the accused can be detained pending an extradition application. Only once the extradition application has been approved can a person be sent to the country that made the request.

Clearly the issue of a red notice via Interpol can only be for crimes of a serious nature including fraud and counterfeit. There have been cases publicized even last year where red notices were requested illegally. UAE Banks, for example, cannot legitimately request a red notice to a European country for a bounced cheque. This is because bouncing a cheque is not considered a crime in Europe. Incidents were reported where the requesting bank illegally changed the crime from ‘bouncing a cheque’ to ‘fraud’. Although the accused were arrested, they were not extradited as it was demonstrated during the extradition application that the request was not valid.

Limited Liability Manager in a UAE Company

The formation of a Limited Liability Company in UAE is the widely used and adapted method by expat as it gives them ownership of 49% in a local business partnership.

The manger in a limited liability company can be appointed for a specified length of time or for an unlimited time. The appointment is to be made and governed under a memorandum of association(although at times can also be determined via a side bar agreement).

A general manger has the authority to take any action or decision in the best interest of the company. If it is stated in the memorandum of association that the manager cannot be removed then the only way to apply for his dismissal is to hold a vote with the shareholders to do so. It is important to note that the manager will still be held responsible and liable for his actions as the GM even after his or her removal.

In the event a third or external party files a complaint or case regarding any illegal or fraud the general manager can be held liable in his personal capacity.

Law of Intellectual Property in Dubai

Intellectual property refers to every and any creation of the mind. That could be an artistic work of literature or music, a symbol or design, a word or phrase or even a newdiscovery or invention.

Under UAE law,the creator of something has absolute rights over it. This means that it cannot be publicly distributed or used without the explicit approval of the owner. Anyone who does use that property without the owner’s permission could face fines from AED 20,000 to AED 50,000, up to two months’ jail, or a combination of both.

In the case of non-profitable organizations (like public libraries where literature is distributed for free) there are limitations to the extent of applying the same intellectual property rights (specifically regarding public service). This does not dissolve all elements however and in the event of a serious breach, the ‘owner’ has the right to file charges.

Any change to intellectual property made without the consent of the owner is illegal and only the owner has the right to determine how his intellectual property is publically distributed or used.

This is an important point to note, even where permission is granted, as altering or changing any element of that intellectual property could have serious legal consequences.