Unsuccessful parties in Dubai rental disputes could have their bank accounts frozen within just two days of losing their case to facilitate payment of funds owed, under an agreement between Dubai Land Department (DLD) and the UAE Central Bank.
At present, it can take up to six months for a Rental Disputes Centre (RDC) decision to filter through to the UAE Central Bank, which then has the power to send a letter to the party’s bank requesting they freeze his account until any outstanding funds are paid to the claimant.
However, the DLD announced on Sunday that the RDC, its judicial arm, has signed a memorandum of understanding (MoU) with the central bank aimed at speeding up the process and facilitating smoother exchanges of information.
The new system will be electronic rather than paper-based, meaning judgements can be instantly referred to the central bank to start the process of liaising with the unsuccessful party’s bank.
