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New Compliance Section Introduced by DLD: Key Guidelines Now Embedded in the Unified Contract F “A Legal and Operational Guide for Real Estate Professionals on the Latest Regulatory Enhancements to Dubai’s Standard Sale Contract”
  • By Dalia Mazin
    Head of Contracts and Compliance
The Unified Sale Contract F has become a fundamental component in the landscape of real estate transactions in Dubai, particularly in the secondary sales market. Introduced as part of the broader regulatory framework to enhance transparency and protect the rights of all parties, it binds buyers, sellers, and brokers within a predefined legal structure governed by the Dubai Land Department (DLD).

At Fam Conveyancing, we consistently guide clients, brokers, and agents through the nuances of this process. Yet, despite its wide usage, misunderstandings around how the Unified Sale Contract functions remain common, especially regarding reservation, cancellation, disputes, and the role of regulators like RERA.

To ensure smooth, compliant, and enforceable transactions, it is essential that all industry professionals carefully adhere to the latest section introduced by the Dubai Land Department (DLD) within the Unified Contract F. This newly added guideline outlines six critical rules that now form part of every sale transaction conducted through the system. Understanding and implementing these rules is not only a regulatory obligation, but also a safeguard to protect all parties from legal exposure and to preserve the transparency and enforceability of the deal.

1. Approval by Both Parties Triggers System Reservation
Once the buyer and the seller both approve the Unified Sale Contract via the DLD’s electronic system, the property becomes automatically reserved. This reservation blocks the listing from being sold again or booked under another contract, ensuring the seller cannot entertain multiple offers simultaneously. It is essential to understand that once this step is completed, the sale is officially in motion—and cannot be undone without mutual agreement.

2. Reservation Is Released Only Upon Contract Expiry or Cancellation
The system will only lift the automatic reservation if the contract expires due to time-lapse or is formally canceled through proper procedure. Until that point, the property is locked within the system and cannot be resold, even if circumstances change. Brokers should avoid misleading clients about their ability to exit the deal without consequence.

3. Contract Cancellation Requires Mutual Consent
Unilateral cancellation is not permitted. To cancel a Unified Sale Contract, both parties must explicitly agree to terminate the agreement and instruct the broker to submit a cancellation request through the DLD system. The request must be approved digitally by both the buyer and the seller. If either party refuses, the contract remains legally binding, and withdrawal may lead to legal consequences as per the compensation clause in the signed CF.

4. In Case of Withdrawal or Dispute, Seek Amicable Resolution First
If either party wishes to exit the transaction or disputes arise, the first course of action should always be an amicable settlement. Both parties should cooperate to reach a written agreement to cancel the contract. If such an agreement cannot be reached, the matter must be escalated to the Dubai Courts, which have sole jurisdiction to issue binding rulings on contractual disputes. Relying on informal understandings or assumptions can result in prolonged legal battles.

5. Broker Must Retain Deposit Cheques in Disputed Situations
When a dispute arises, such as a buyer refusing to proceed or failing to deliver the deposit cheque; the broker is legally obligated to retain the cheque and may not release it to either party unless both the buyer and the seller issue formal, written consent, or unless a court order is obtained. This obligation ensures neutrality and protects against financial misuse or miscommunication.

6. RERA’s Role Is Regulatory, Not Judicial
The Real Estate Regulatory Agency (RERA) plays a supervisory and regulatory role but does not have judicial authority to resolve contract disputes. However, if both parties agree, they may submit a formal request through the Trakheesi system for RERA to assist in initiating an amicable resolution. If RERA accepts the request, both parties will be invited to attend a session where the dispute may be mediated. This is a voluntary and non-binding process, distinct from formal legal proceedings.

⚖️ What This Means for Real Estate Professionals

The Unified Sale Contract brings structure and accountability, but also strict compliance requirements. To maintain trust with clients and uphold legal standards, brokers and agents must:

  • Advice clients about the legal binding nature of the contract before signing
  • Avoid offering misleading assurances about cancellation flexibility
  • Ensure all actions, approvals, and cancellations are processed through the DLD system
  • Refer unresolved matters promptly to legal or judicial channels, not informal solutions
  • Maintain clear documentation and protect all deposit instruments

💼 Fam Conveyancing: Your Strategic Partner in Sale Contract Execution

Our role extends far beyond drafting or witnessing signatures. At Fam Conveyancing, we work alongside agents and clients to ensure all processes under the Unified Sale Contract are legally compliant, digitally recorded, and risk-mitigated from initiation to final cancellation or transfer.

Whether you’re facing a dispute, navigating a cancellation, or unsure of the next step under the system, we’re here to support and advise you every step of the way.

For dedicated assistance or tailored advice, contact our experienced legal conveyancing team today.

📞 +971 58 822 9107 | +971 52 128 9592
📧 info@famconveyancing.com
🌐 www.famconveyancing.com

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