UAE real-estate fraud victims can seek civil and criminal remedies

Victims of real-estate fraud in the UAE can protect their rights by pursuing civil claims for restitution and compensation, as well as criminal complaints under the UAE Penal Code, with proceedings governed by the Civil Procedure Law and the Dubai Land Department regulations.

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WHAT CONSTITUTES REAL-ESTATE FRAUD UNDER UAE LAW?

Real-estate fraud occurs when a person obtains property, money or a benefit through deceit, false representation or concealment of a material fact concerning a real-estate transaction. The UAE Penal Code (Federal Decree-Law No. 3 of 1987) criminalises fraud in Article 399, which provides that anyone who, by deceitful means, induces another to deliver money, movable or immovable property, or to obtain a benefit, is punishable by imprisonment and/or a fine. In Dubai, the Dubai Land Department Law No. 7 of 2006 further requires that all property transfers be registered; any transaction that bypasses registration or uses forged documents may be treated as fraudulent under both the Penal Code and the Land Department regulations. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

HOW CAN A VICTIM INITIATE A CRIMINAL COMPLAINT FOR REAL-ESTATE FRAUD?

A victim must first file a police report at the nearest police station or through the Dubai Police e-crime portal, providing a detailed description of the fraudulent act, copies of any contracts, payment receipts, correspondence and identification documents. The police will register the complaint, conduct an initial investigation and, if sufficient evidence exists, refer the case to the Public Prosecution. Under the Criminal Procedure Law (Federal Decree-Law No. 35 of 1992), the prosecution has up to 30 days to decide whether to press charges; if charges are filed, the case proceeds to the criminal court where the accused may face imprisonment of up to two years and/or a fine under Article 399 of the Penal Code. The victim may also request a precautionary attachment of the defendant's assets to secure potential restitution.

WHAT CIVIL REMEDIES ARE AVAILABLE TO RECOVER LOSSES?

Victims may file a civil claim before the competent civil court (Dubai Courts for mainland matters, or the DIFC/ADGM Courts if the contract specifies those jurisdictions) seeking:

• Restitution of the property - if the title has not yet transferred, the court can order the return of the property to the rightful owner.
• Compensation for financial loss - including the purchase price, deposits, brokerage fees and any consequential damages, quantified according to evidence such as bank statements and invoices.
• Moral damages - awarded at the court's discretion when the fraud caused severe emotional distress.
• Interest and legal costs - as prescribed by the Civil Procedure Law (Federal Decree-Law No. 42 of 2022).

The claim must be filed within the limitation period set by the Civil Transactions Law (Federal Decree-Law No. 5 of 1985), which provides a 15-year limitation for claims concerning immovable property, unless a shorter period is stipulated in the contract. The plaintiff must submit the original sale agreement, proof of payment, any correspondence showing deceit, and a valuation report if claiming loss of market value. Court fees are calculated as a percentage of the claim value, typically ranging from 3 % to 6 % depending on the amount, and are payable upon filing.

WHAT EVIDENCE IS ESSENTIAL TO PROVE REAL-ESTATE FRAUD?

Key evidence includes:

• The original sale or purchase agreement showing the parties' obligations.
• Bank transfer records or cheques evidencing payment of the purchase price or deposit.
• Communications (emails, SMS, WhatsApp) in which the seller made false statements about ownership, encumbrances or property specifications.
• Title deed extracts from the Dubai Land Department demonstrating that the seller was not the registered owner or that the deed was forged.
• Expert reports (e.g., forensic document examination) confirming the falsity of signatures or stamps.
• Witness statements from brokers, neighbours or other parties who observed the deceit.

The burden of proof rests on the plaintiff in civil cases and on the prosecution in criminal cases; the standard is "beyond a reasonable doubt" for criminal liability and "preponderance of the evidence" for civil claims. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

HOW LONG DOES THE ENTIRE PROCESS USUALLY TAKE?

Criminal proceedings can take between six months and two years from police referral to final judgment, depending on case complexity and court backlog. Civil claims for restitution or compensation typically require 12 to 18 months to reach a first-instance judgment, with possible appeal adding another six to twelve months. Precautionary measures such as asset attachment can be obtained within a few days to two weeks after filing the civil claim, provided the judge finds a prima facie case and a risk of dissipation. The Civil Procedure Law sets specific timelines for filing defences (usually 15 days) and for submitting evidence (generally within 30 days of the defence), but actual durations vary with the court's workload.

WHAT ARE THE TYPICAL COSTS INVOLVED?

• Police report filing - no fee.
• Public prosecution fees - nominal administrative charges, generally under AED 100.
• Criminal defence or prosecution representation - lawyer fees are negotiated; there is no statutory scale.
• Civil court filing fee - calculated as a percentage of the claim amount (e.g., AED 5 000 for a AED 100 000 claim).
• Expert witness fees - range from AED 2 000 to AED 10 000 per report, depending on the specialist.
• Attorney fees for civil litigation - commonly structured as a fixed fee, hourly rate (AED 1 500-AED 3 000 per hour) or a contingency arrangement, subject to agreement.

The UAE does not prescribe fixed lawyer fees; parties must agree on costs in writing. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

FREQUENTLY ASKED QUESTIONS

What law governs the registration of property transactions in Dubai?
The Dubai Land Department Law No. 7 of 2006 requires that all transfers of ownership be registered with the Land Department; failure to register renders the transaction ineffective against third parties and may constitute fraud under the Penal Code. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

Can a victim claim compensation if the property has already been transferred to a bona-fide purchaser?
If the property was transferred to a purchaser who bought in good faith and for value, the original owner may still pursue a claim against the fraudulent seller for damages, but recovery of the property itself may be barred. Civil claims for compensation remain viable under the Civil Transactions Law. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

Is it possible to obtain an urgent attachment of the defendant's assets before judgment?
Yes. Under Article (20) of the Civil Procedure Law, a plaintiff may request a precautionary attachment of movable or immovable assets to prevent dissipation. The judge grants the order if there is a prima facie case and a risk of asset disposal, typically within a few days of the application. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

What is the limitation period for filing a civil claim related to real-estate fraud?
The Civil Transactions Law (Federal Decree-Law No. 5 of 1985) provides a 15-year limitation period for claims concerning immovable property, unless the contract stipulates a shorter period. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

Can a victim pursue both criminal and civil actions simultaneously?
Yes. Criminal proceedings address the offender's liability to the state, while civil claims seek restitution and compensation for the victim. The outcomes are independent; a criminal conviction does not automatically award civil damages, and a civil judgment does not affect criminal liability. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

Are there any alternatives to court litigation for resolving real-estate fraud disputes?
Parties may opt for mediation or arbitration if the contract contains an arbitration clause referring to DIFC, ADGM or ICC rules. Settlement through the Dubai Courts' Centre for Amicable Settlement is also available before trial. The Arabic text of UAE legislation as published in the Official Gazette prevails over any translation.

If your matter involves a real estate fraud case in the United Arab Emirates, you are welcome to request a consultation with Nour Attorneys. Our team can assess your position under the law currently in force and outline the options available to you. Request a consultation

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