Acquisition of a Dubai apartment on the secondary market for $320k: legal due diligence saved $9k before the funds were released
«The key advantage of escrow in real-estate deals is that there is no need to rush the transfer of funds. Until the deal is registered with the Dubai Land Department and all obligations are reconciled, the funds remain on the smart contract»
A buyer from Moscow was acquiring a two-bedroom apartment in Dubai Marina from the current owner. Secondary market, payment in USDT — 320,000.
Barakat Zeewaneh acted as the deal lawyer on the Dubai side. During legal due diligence, undeclared arrears on service charge and DEWA were identified — the deal price was adjusted before the funds were released from escrow.
Barakat Zeewaneh, Ruzhetsky & Co. Legal
14 years of practice in private-asset management and real-estate deals, the last 6 in Dubai. Deals involving apartments, villas and commercial property in DIFC, JBR, Downtown, as well as projects under construction in JVC.
At EscroWallet handles deals in Dubai: title verification, obtaining the NOC from the developer, reconciling obligations with the Owners Association and DEWA, registration with the Dubai Land Department. Languages: Arabic, English, Russian.
Marina secondary market, payment in USDT, registration with the DLD
The seller — the current owner, who had held the apartment for 4 years. The buyer was acquiring real estate in Dubai for the first time and was unfamiliar with the local specifics: NOC, service charge, registration with the Dubai Land Department, the requirement to pay in AED through a licensed exchange house.
The main risk of the secondary market in Dubai — undisclosed arrears of the previous owner to the Owners Association (OA) and the Dubai Electricity and Water Authority (DEWA). After registration with the DLD, the arrears transfer to the new owner, and discovering them afterwards involves significant cost and time.
Escrow in USDT and legal due diligence before fund release
The parties registered the deal at EscroWallet and selected Barakat as the deal lawyer. The buyer deposited 320,000 USDT into escrow — the funds were locked on the smart contract, and the seller received confirmation in the deal chat.
In parallel Barakat carried out legal due diligence: chain of title at the DLD, request for the NOC from the developer, statements from the OA and DEWA. At this stage two undeclared arrears were identified: service charge for two quarters — AED 28,000, and DEWA — AED 4,200. Total — around 9,000 USDT at the current rate.
Addendum and price adjustment before fund release
Barakat drafted an addendum: the seller acknowledges the arrears, and the deal price is reduced by the amount of the debt. The parties signed the addendum in the deal chat. After registration with the DLD, the seller received 311,000 USDT — 9,000 less than the original price. The arrears to the OA and DEWA were settled from the retained amount through the lawyer before ownership transferred to the buyer.
- $320k → $311k — the price was adjusted before the funds were released from escrow
- AED 28,000 + AED 4,200 — undisclosed arrears identified on service charge and DEWA
- 3 checks with the Dubai Land Department before the funds were released from escrow
- The buyer is protected from risk — arrears were settled before the transfer of ownership
«On my own I would not have thought to request an Owners Association statement before the deal. In an ordinary sale, the funds would already be with the seller, and the arrears would fall on me. At EscroWallet, all obligations were identified before the funds left escrow»
The buyer received real estate free of encumbrances, the seller — 311k USDT
Registration with the Dubai Land Department was successful: the apartment passed to the new owner free of encumbrances. The seller received the adjusted amount, since otherwise the deal would have moved into a dispute after ownership had already transferred. The buyer saved 9,000 USDT and avoided lengthy proceedings with the Owners Association and DEWA.
This is the basic logic of escrow with a deal lawyer in real-estate deals: the funds are locked on the smart contract, there is no time pressure, legal due diligence proceeds on a planned schedule, and any price adjustments are formalised before the funds are released.
Run your deal with this lawyer
Barakat Zeewaneh will act as the arbiter: oversee the contractor's performance and rule on any dispute that arises. Funds are protected by escrow.