Question: I am planning to purchase a property in Dubai directly from the owner, who has promised to vacate the unit by the end of the year. If we agree on a move-out date, what happens if he decides to stay longer? We plan to move in by December and I don’t want any kind of hassles then. Please advise on how I can ensure he moves out by the agreed date. I also want to know what legal actions I can take if he refuses to move out as scheduled.
Answer: When a property is sold in Dubai, both the seller and the purchaser sign a Sale Purchase Agreement (SPA). It is important to include a clause in the SPA regarding the handover date of the property and the proposed date by which the seller will vacate the property, allowing the buyer to take possession of such property.
Additionally, the handover date of a property being sold and the date the seller vacates the property may either be the same or different, depending on the mutual written agreement between the purchaser and the seller, in line with the agreed terms and conditions of the SPA. The seller is required to vacate the property by the date specified in the SPA.
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The relationship between a purchaser and a seller of a property is governed by the SPA. Additionally, both parties to the contract are obliged to perform their obligations in accordance to the terms and conditions mutually agreed upon in good faith.
This is in accordance with Article 246(1) of Federal Law No. (5) of 1985 Concerning the issuance of the civil transactions law of the UAE, which states “The contract between the parties should be implemented according to the provisions contained therein and in manner consistent with the requirement of good faith.”
It is important to note that if an individual enters into a contract but later fails to fulfil his/her obligations in accordance with the contract and is subsequently sued by the other party for not upholding the terms of a contract, a court which has jurisdiction to hear the matter may enforce obligations mentioned in the agreement against the party which breaches a contract, as long as necessary conditions, including formal requirements, are met.
Once the judgement issued by a court which has jurisdiction is final, the operative part and the contents of such judgement shall be valid on par with a contract entered between the parties. This is under Article (147) of the Civil Transaction Law, “If a person promises to make a contract and then reneges and is sued by the other person for the performance of the promise and the conditions necessary for the making of the contract, in particular the form, are satisfied, the judgement shall, when it becomes final, stand as the contract.”
It may be noted that, in the event of a breach of any of the clauses of a contract one of the parties may be entitled to compensation as mentioned in a contract or as decided by a judge of a court which has jurisdiction in Dubai. This is in accordance with Article 295 of the UAE Civil Transactions Law, which states, “Damages will consist of a money payment. Upon request of the victim, however, the judge may, in accordance with the circumstances, order that the damage be made good by restoring the parties to their original status, or by performing, in compensation, a specific matter connected with the prejudicial act.”
Based on the aforementioned provisions of law, to ensure the seller vacates the property on the agreed date as mentioned in the SPA, it is vital to have a clear and detailed clause in the SPA specifying the handover date and/or date of vacating the property by the seller. If the seller (existing owner) does not vacate as agreed, you may enforce the SPA by approaching the court in Dubai to ensure the enforcement of the SPA and may seek compensation if the terms of the SPA are breached by the seller. As you have mentioned that you are planning to purchase the property from the seller, to safeguard your interests, you may ensure that the SPA is reviewed and vetted by a legal professional.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.