Legal Consequences of Providing Incorrect Information in Property Deals
Accuracy and transparency are critical in UAE property transactions. Providing incorrect, incomplete, or misleading information—whether intentional or accidental—can lead to serious legal and financial consequences. UAE real estate laws place a strong emphasis on disclosure, making it essential for buyers, sellers, developers, and agents to understand their legal responsibilities.
What Counts as Incorrect Information?
Incorrect information in property deals may include false property details, undisclosed encumbrances, inaccurate pricing, misrepresentation of ownership, inflated rental returns, or misleading project timelines. In off-plan transactions, providing incorrect approvals, construction status, or escrow details can also trigger legal action.
Legal Framework in the UAE
Property transactions in the UAE are governed by the UAE Civil Code, real estate regulations issued by land departments, and consumer protection laws. These laws prohibit misrepresentation, fraud, and concealment of material facts. Even unintentional misinformation can result in liability if it causes financial loss to the other party.
People can also read: Construction Disputes Between Developers and Buyers in UAE Law: Legal Rights & Remedies
Legal Consequences for Sellers and Developers
Sellers or developers who provide incorrect information may face contract termination, financial penalties, compensation claims, or refund obligations. In serious cases involving fraud or deliberate deception, criminal liability may arise, leading to fines or prosecution. Regulatory authorities may also suspend licenses or impose administrative sanctions.
Legal Consequences for Buyers
Buyers are also required to provide accurate information, especially in financing applications, identity documentation, and payment disclosures. Providing false information to banks or authorities can result in loan cancellation, blacklisting, or legal action. Buyers may also lose deposit amounts if misinformation leads to contract breach.
Remedies Available to Affected Parties
Parties affected by misinformation can seek contract rescission, compensation for damages, or specific performance through legal proceedings. Complaints can also be filed with land departments or real estate regulators. Timely legal action and proper documentation significantly strengthen the chances of recovery.
Importance of Legal Due Diligence
Most disputes related to incorrect information can be avoided through legal due diligence. Reviewing contracts, verifying title deeds, checking approvals, and confirming financial disclosures are essential steps before finalizing any property deal.
How Saif Al Shamsi & TLG – The Legal Group Help
Saif Al Shamsi, Founder of TLG – The Legal Group, assists clients in preventing and resolving disputes arising from incorrect property information. His team conducts detailed legal due diligence, reviews transactional documents, and ensures full regulatory compliance.
In cases where disputes arise, TLG represents clients before land departments, regulatory authorities, and courts, working to secure compensation, refunds, or enforcement of legal rights. This proactive and strategic approach helps protect clients from serious legal and financial exposure.
Conclusion
Providing incorrect information in property deals can lead to severe consequences under UAE law. Legal awareness and professional guidance are essential to avoid disputes and liabilities. With expert support from Saif Al Shamsi and TLG – The Legal Group, parties can ensure transparency, compliance, and secure real estate transactions.