Property Purchase Tips, Breach of Privacy, Gratuity, Appeals & more.

Host
There’s just so much more to hear. Download our podcasts at DubaiI1038.com

It is the Legal Hour with our legal expert Ludmila Yamalova. Lots of questions to address. If you’ve texted in, you get priority at the top of the list. If you’d like Ludmila’s perspective, get in touch via 4001 or the free app. You can also call us on 423 1010.

Let’s talk about Cityscape first because there’s a news story today. This is likely to be in headlines online and in the papers tomorrow. Azizi Developments sold out phase one of their waterfront project, Azizi Riviera. They’ve also sold 50% of phase two on day one of Cityscape. This tells us there is demand and desirability, but when you buy off-plan, Ludmila, you need to know what you’re doing. We read that this year you can do everything seamlessly at Cityscape.

Don’t just jump in because you have money to burn. You’ve got to think this through.

Ludmila Yamalova
Indeed. The key document to review is what the developers are using, whether it’s a reservation agreement, booking form, or a full sales and purchase agreement (SPA). These documents accompany any payment you make. Ensure you understand the terms before parting with your money.

Some key points to consider:

1. Who you’re contracting with: Ensure the entity responsible for delivering the project is signing the agreement.
2. Project name and details: Verify specifics, including the unit, building, and size.
3. Price and payment terms: Understand milestones for installment payments.
4. Completion date: Know when the property will be delivered.
5. DLD fees: Ensure clarity on who pays the 4% registration fee.
6. Brokerage fees: Determine how these are split.
7. Deposit terms: Check refundability and conditions.
8. Cancellation clauses: Understand penalties for termination by either party.

These terms should be in the initial document you sign, whether a booking form or SPA.

Host
Wow, breathe! That’s a lot to consider when buying off-plan. We’ll revisit those points, as property is a hot topic. Remember, Cityscape continues tomorrow.

Questions are coming in for the Legal Hour. Ludmila, we’ll answer some texts and digital queries shortly. Legal Hour continues on Drive Live, only on Dubai Eye 103.8.

Host
Our guest today is Ludmila Yamalova from Yamalova & Plewka. Let’s dive into questions.

An email asks: A contractor visiting a residential hotel changed some furniture, recognized the tenant, and revealed the address, including the apartment number, on social media. This has made the tenant uncomfortable. The landlord insists on the full seven months’ rent left on the contract. The tenant believes the building or contractor should cover penalties for early exit. Ludmila, what can the tenant do?

Ludmila Yamalova
This case involves multiple parties: the contractor, the building/hotel, and the landlord.

1. Landlord:
   The landlord isn’t at fault, so they’re not obligated to release the tenant without penalty. However, the tenant can argue for early termination at the rent committee, which may reduce penalties.
2. Contractor/Hotel:
   The contractor breached privacy laws, which is a criminal offense in the UAE. Filing a criminal case could result in penalties under cybercrime laws. However, fines won’t compensate the tenant directly.

For compensation, the tenant can pursue a civil claim against the contractor or hotel for financial losses, including the seven months’ rent.

This process can be lengthy and costly. From a practical standpoint, the tenant should weigh emotional versus financial costs.

Host
We have more questions on employment, property, and tenancy. Stay tuned. Ludmila Yamalova will continue answering queries on the Legal Hour, only on Dubai Eye 103.8.

Host
We’re back on the Legal Hour with Ludmila Yamalova from Yamalova & Plewka. Let’s dive into more questions.

This one comes from an anonymous caller about employment. They resigned on the spot after working with a company for 2 years and 9 months. Their final settlement includes deductions for 11 days of annual leave and a prorated annual ticket, which seems incorrect. The caller also mentions confusion about whether they’re under UAE labor law or DIFC employment law. Ludmila, what’s your perspective?

Ludmila Yamalova
This depends on whether your employment falls under the UAE labor law or DIFC employment law. If your contract explicitly states you are under UAE labor law, and your visa was issued outside DIFC, then UAE labor law applies.

1. Annual Leave:
   Under UAE labor law, if you’ve taken leave in advance (beyond what you’ve earned), the employer is allowed to deduct the equivalent days from your final settlement. So, deducting 11 days from your gratuity is legal if they were unearned leave days.
2. Annual Ticket:
   An annual ticket is a contractual benefit, not a legal requirement under UAE labor law. It should be paid in full unless your contract specifically states it will be prorated. If no prorated clause exists, the deduction for the ticket seems incorrect.

I recommend reviewing your employment contract carefully to confirm the terms.

Host
Thank you, Ludmila. Let’s move on to a question about power of attorney for property sales.

Brian asks: “My wife is leaving the UAE next year. I plan to stay on to sell our jointly owned property in Ras Al Khaimah. We’d like to set up a power of attorney so she doesn’t have to return. How straightforward is this, and how much will it cost?”

Ludmila Yamalova
This is relatively straightforward:

1. Drafting the Power of Attorney:
   Ensure it includes the specific property details (e.g., title deed number and location). Without this, it won’t be valid for property transactions.
2. Notarization:
   Visit a notary public in the UAE with the original title deed. The power of attorney must be notarized, which usually costs between AED 200–500, depending on the notary.
3. Banking Arrangements:
   If the property is sold in your wife’s name, any checks will likely be issued in her name. Ensure there is a UAE bank account in her name to deposit the proceeds.

It’s important to act early, as processing delays can happen.

Host
Thanks, Ludmila. Here’s another real estate-related question from Kumar: “Will VAT apply to off-plan property purchases directly from developers or from the secondary market?”

Ludmila Yamalova
Residential properties are generally exempt from VAT. However, the rules differ for off-plan properties:

1. Direct Purchase from Developer:
   For the first three years after completion, off-plan residential properties are exempt from VAT.
2. Secondary Market:
   In most cases, sales in the secondary market are also exempt from VAT for residential properties.

Commercial properties, however, are subject to VAT, so buyers should verify whether the property is residential or commercial. Keep an eye on future by-laws for further clarifications.

Host
Ludmila, another interesting query from Ashwin: “A contractor working on a residential hotel revealed a resident’s address and details on social media. Can the resident pursue legal action?”

Ludmila Yamalova
Yes, they can. This constitutes a breach of privacy and potentially a cybercrime under UAE law. Here’s what they can do:

1. File a Criminal Complaint:
   Report the incident to the cybercrime division of the police. If found guilty, the contractor or hotel could face fines ranging from AED 200,000 to 500,000.
2. Civil Claim:
   The resident can pursue a civil case for financial compensation, especially if this breach caused them to vacate the property prematurely.

Given the complexity, it’s advisable to consult a lawyer to file the appropriate claims.

Host
Thank you, Ludmila. That’s all the time we have today. If you didn’t hear your question answered, don’t worry. We’ll save it for next week. Ludmila Yamalova from Yamalova & Plewka, as always, it’s been a pleasure.

Ludmila Yamalova
My pleasure.