Benefits of Real Estate Investing Buying real estate has long been one of businessmen and individuals’ favorite pastimes. Real estate is always thought of as a long-term and less risky investment. However, if a person is unfamiliar with real estate and the market, investing in properties might be risky. It also necessitates a thorough awareness of money matters, investments, and real estate regulations. Real estate investing has various advantages, including:

  • Full Control
  • Fewer Risks
  • Cash Flow
  • Tax Benefits/Deductions
  • Hedge against Inflation

Importance of Deposit while Renting & Buying Property

When buying or renting out any property, both purchasers and landlords must be aware of the regulations governing deposits.

Real Estate Deposit: In order to reserve real estate (such as an apartment, villa, commercial space, or home), a deposit is paid to the developer. The buyer is given a receipt for the deposit amount, but there is no formal contract for this money. Legal counsel from Rental Dispute Lawyers in Dubai, UAE, is highly recommended to ensure a smooth process.

When renting a property, the landlord will ask for a security deposit from the renter. This one-time refundable amount serves as a guarantee that the tenant will return the property undamaged and that all utility bills will be paid. Any damage the tenant does is subtracted from the security deposit before the remainder is reimbursed when the tenant vacates the property. It is advised that the landlord seeks legal advice from a Dubai rental dispute lawyer to understand his legal options about the security deposit.


Deposit and Advance are not the same: The advance is essentially the prepaid sum that the tenant pays at the beginning of each month instead of rent. A down payment is made as a guarantee that the buyer is committed to the transaction.

The lawfulness of a Contract


There are established property laws to protect the interests of renters, developers, buyers, builders, landlords, and all other stakeholders. To protect your rights, make sure to draught a contract with legal property experts in Dubai, UAE.

Leasing Laws

It is acceptable for a landlord to retain a portion of a tenant’s security deposit. The security deposit is recovered when the tenant leaves the property.

Purchasing real estate

The security is held in escrow for a future undertaking. The buyer receives a receipt and the deposit is used as security to seal the purchase. If the buyer backs out of the contract, the money is typically not recoverable. The contract also includes information on the timing and method of the final payments. UAE law states that the UAE national amount might range between 10% of the total and 50% of the total for buyers outside of the UAE.

Making a Deposit Refund

The procedure for refunding a deposit is not set in stone. It depends on the conditions and the type of contract.

If the Developer Doesn’t Deliver

A developer is required to reimburse all payments, including deposits, under the real estate regulations in Dubai, United Arab Emirates. This will apply if the project is canceled by the Real Estate Regulatory Authority (RERA) due to irregularities. When development is stopped for reasons beyond the developer’s control, the developer is required to repay the money and will subtract 30% of the original sum. In this scenario, the developer also has the option to end the contract and pay the remaining balance within 60 days after the property’s selling.

If the buyer breaches the agreement

The buyer must first discuss the problem with the developer to reach a settlement arrangement if they are unable to complete the payment on time. In the event this does not work, the developer may file a complaint with the Dubai Land Department (DLD), which will notify the buyer to make the necessary payments. If the buyer does not pay the agreed-upon amount after one year, the developer may dissolve the contract, collect 40% of the total contract price, and pay the remaining money to the buyer. If the property is sold, the developer must make the payments within 60 days.

The developer can sell the property and deduct the balance if the buyer has finished 80 percent of the project. The right to put the property up for auction rests with the developer.

Lease Agreement

The property must be maintained by the tenant, who must also prevent any harm from occurring. The tenant must pay off all utility bills and notify the landlord 90 days in advance of moving out. After clearing, the landlord must give the renter their security deposit back. If the tenant violates the terms of the lease, the landlord may file a lawsuit.

Rental Dispute Advocates

Contact our Dubai Rental Dispute Lawyers if you need any legal assistance. Whether you are a buyer, developer, tenant, or anyone else who feels like their legal rights have been misrepresented, we offer you the best legal counsel.