Tenants Included — What to Do (as an end user) Before You Sign Your MOU

Sarah* found the apartment. Loved it. It ticked every single box — the view, the layout, the location. She signed the MOU, paid her deposit, got through the whole purchase process, and waited for the tenant to leave.

Except the tenant didn't leave.

Because the seller had never served notice. And here's the part that stings — he knew. He knew when he listed the property, knew when he accepted the offer, knew when they sat across from each other and signed. He just didn't say anything and hoped it would sort itself out. It didn't.

What it did was leave my client holding the keys to a property she legally owned but couldn't walk into. By the time she understood what had happened, she had already completed the purchase.

The leverage she had at the MOU stage was gone. All she could do was serve notice herself — properly, legally, via notary — and start the 12-month countdown from scratch.

From the day she signed to the day she finally moved in? Nineteen months.

I'm sharing this because it happens more than you'd think. Not because buyers are careless or naive — but because nobody tells them what to look for before they sign. And in Dubai, the MOU stage is your window. Miss it, and you're navigating a completely different situation with far fewer options. So let's make sure you don't.

What Are You Actually Buying?

When you purchase a property in Dubai that has a tenant living in it, you're not just buying the property. You are buying the property and inheriting whatever tenancy agreement is already in place.

That tenancy agreement — its terms, its expiry date, its notice requirements — transfers to you the moment you complete. The tenant's rights don't disappear because ownership changed hands. If anything, RERA (the Real Estate Regulatory Agency) makes sure of it. Which is a fair system. But you need to understand it before you sign anything.

What to Check Before You Sign Your MOU

The MOU — Memorandum of Understanding — is where you still have power. Once it's signed, your options narrow considerably. So before you put pen to paper, here's what you need to have in front of you.

The full tenancy contract

Not a summary. Not the agent's version of events. The actual signed contract. You need to know the exact expiry date, the renewal terms, and whether it's a fixed term or rolling. This tells you immediately what you're walking into.

Ejari registration

Ejari is the official system that registers tenancy contracts in Dubai. If the tenancy isn't registered on Ejari, it creates complications — for the tenant's rights, for yours, and for the legal process of serving notice. Check it exists. Check it's current.

Has notice been properly served? Prove it.

This is the big one. Ask the seller directly — has notice been served on the tenant to vacate? If the answer is yes, ask for the proof. You want to see the notarised notice or the registered mail receipt, with a date on it. If they can't produce that, notice hasn't been served. Full stop.

Rent payment status

Are there any arrears? Is the tenant up to date? When is the next cheque due and what happens to it on completion? These aren't awkward questions — they're necessary ones.

Cheque handover

In Dubai, rent is commonly paid in post-dated cheques and an additional deposit cheque. If the seller is holding cheques that cover a period after your completion date, you need clarity on how those are handled. That money belongs to you as the incoming owner.

What to Put IN Your MOU

Checking the above tells you what you're dealing with. But the MOU itself needs to reflect your position as a buyer who intends to occupy the property. Specifically:

A vacant possession clause (If applicable).

This states that the seller is responsible for ensuring the property is handed over vacant by a specific date. It puts the obligation squarely on them — not on you to figure out after the fact.

Rent Refund Calculations.

If you’re transferring mid-tenancy contract and/or mid cheque, there will likely be a refund due to you. Ordinarily, this is calculated from the date of transfer (not blocking) and is calculated pro rata with a daily calculation.

Confirmation of notice served.

If the seller is representing that notice has already been served, get that in writing as part of the MOU. With the proof attached.

Without these clauses, you're relying on goodwill. And goodwill doesn't hold up when someone refuses to leave a property you've paid for.

Talk to Someone Before You Sign

In my line of work, I see both sides of these transactions — the financing and the legal process. The situations that go wrong almost always have one thing in common: the buyer didn't have the right support before they signed.

Not because they weren't smart. Because nobody flagged it. The agent was focused on closing the deal, the seller wasn't volunteering information, and the buyer didn't know what questions to ask.

That's not a character flaw. That's just not having the right person in your corner.

If you're buying a property in Dubai that currently has a tenant in it — especially if you're planning to live there yourself — talk to a conveyancing agent before your MOU is signed. Not after. Not when something feels off. Before.

It's the conversation that costs nothing and could save you the better part of two years.

*True story, but name changed for anonymity

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