How do I recover the money I paid a property developer?
Around four years ago, I purchased a four-unit residential apartment from a developer in Ajman. The project is based in Ajman. I signed a purchase agreement and made a down payment to the developer. It has now been more than four years, but the project has not commenced. When I contacted the Real Estate Land Department in Ajman, I found that the developer is not registered with the Real Estate Regulatory Agency and there is no escrow account for the project. I was also told that the project is not yet under the developer’s name as it has a bank mortgage. I approached the developer’s office and tried to settle the matter amicably, but the developer is not willing to give my money back immediately. He offered to return my money in instalments paid in postdated cheques over two years. I rejected his offer. What do I have to do to get my money as per Ajman’s real estate law? First, the questioner shall file a complaint of fraud and breach of trust against the developer since the developer is not registered in line with the Decrees of Properties, which oblige a developer to register with the Real Estate Regulatory Agency as well as open an escrow account.
He is also supposed to deposit the money received from buyers into the escrow account of the project rather than in his own account.
Secondly, the questioner may file a real estate case before the court concerned and request the court to terminate the contract and refund his money in full. He can also seek proper compensation for damages incurred.
Non-competition clause
If an employee signs a noncompetition clause with his company accepting that he cannot work for a competitor in the UAE, but the period is not mentioned, does it mean he cannot work with any competitor forever? Is a clause of this nature legal? The competitor clause in my agreement mentions that I can’t work in a new company after leaving as long as my current company operates in the UAE market. What is my legal status?
Article 127 of the Federal Labour Law No 8 of 1980 states: “Where the work assigned to a worker allows him to become acquainted with the employer’s client, or to become familiar with the secrets of his business, the employer may require him to refrain, after the termination of his contract, from competing with him or participating in any enterprise competing with his own. Such an agreement shall be valid only on condition that the worker is at least 21 years of age at the time of its conclusion that the agreement is limited, as regards the time, the place and the nature of the business, to the extent necessary to safeguard the employer’s lawful interest.”
The Dubai Supreme Court has also stated that the competition clause will be illegal and invalid if the period and the specific place are not mentioned.
Questions answered by advocate Mohammad Ebrahim Al Shaiba of Al Shaiba Advocates and Legal Consultants.