Dubai property sale needs blank cheque

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Dubai property sale needs blank cheque

Postby dubai property owner » 24 Aug 2010, 09:59

Hi, I hope this website is still up and running.
I own a property, I'm not a residet of Dubai, it' not complete yet.
I'm in the process of selling it but have been informed as part of the sales process I have to issue a uae personal cheque for the size of the mortgage 'as extra security' and wouldn't be cashed. I m not a resident therefore I can't open a cheque account and the cheque wouldn't be wort te paper it's written on. Has anyone else ccome across this problem? Is there a way round t other than completing on the property, obtaining a residence visa, apply for a bank account and then order a cheque book - for a cheque that won't be cashed!
dubai property owner
 

Blank cheques in Dubai

Postby shawarma » 24 Aug 2010, 14:22

I'd be very careful about handing over a blank cheque in Dubai to anyone. There are many people in Dubai jails who will tell you the same thing. Even if you operate from overseas, should you ever visit Dubai, and there's an outstanding claim against a bounced cheque, you could wind up in jail.

Anyway, with the new Dubai property visa, I'm not sure it's that easy to open a UAE bank account, especially with a chequebook.

I would seriously consider contacting a lawyer with experience in property sales to ask about this. I'm not sure I've understood you correctly anyway. I don't get why, if you own the property and are selling it, you should be writing out a cheque to cover the mortgage. Unless you have a mortgage outstanding on it, but then you would have a UAE bank account already no?
Please use the forum for questions, not the PM system.
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