Unsuccessful parties in Dubai rental disputes could have their bank accounts frozen within just two days of losing their case to facilitate payment of funds owed, under an agreement between Dubai Land Department (DLD) and the UAE Central Bank.
At present, it can take up to six months for a Rental Disputes Centre (RDC) decision to filter through to the UAE Central Bank, which then has the power to send a letter to the party’s bank requesting they freeze his account until any outstanding funds are paid to the claimant.
However, the DLD announced on Sunday that the RDC, its judicial arm, has signed a memorandum of understanding (MoU) with the central bank aimed at speeding up the process and facilitating smoother exchanges of information.
The new system will be electronic rather than paper-based, meaning judgements can be instantly referred to the central bank to start the process of liaising with the unsuccessful party’s bank.
“The proposals will speed up procedures and reduce transaction times from six months to two working days, achieved through a transition from paper-based to electronic systems,” the DLD said in a statement to media.
Verdicts will be directly implemented by the banks, “which will also provide immediate responses to enquiries as appropriate”, it added.
The changes mean it can be proven within 48 hours rather than six months whether a financial compensation can or cannot be paid to a successful claimant.
And the winning party will no longer have to risk waiting six months for payment only to find out that the cheque owed to them has bounced.
RDC director Abdulqader Musa Mohammad said: “It is expected that this MoU (memorandum of understanding) will pave the way towards promoting transparency for all property transactions and procedures, benefiting all parties and guaranteeing the protection of their rights.”For all the latest real estate news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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