We are often asked for advice with regards to commission claims
and claims in relation to defects to properties.
The court route is long and tedious, and it can take up to three
years for a case to be finalised. Agents often walk away from
legitimate claims for commission because they feel they will spend
their time and money more effectively in selling more property.
All of this can be avoided by stipulating in the mandate
agreement that, in the event of a dispute with regard to the
payment of commission, the agency may elect to refer the matter for
mediation, and if the dispute remains unresolved, arbitration.
Mediation usually precedes arbitration and an independent third
party is tasked with mediating, or negotiating, a settlement of the
dispute. If that then fails, the matter is referred to
Arbitration is essentially exactly the same as a court case,
except that the case is heard by an arbitrator and not a judge or
magistrate, and the procedures that are followed are less
An arbitration can easily be finalised within a period of three
or four months, and the owner of a property would be legally bound
to such an agreement. An arbitrator is appointed jointly by the
parties, and if they are unable to agree on the nomination of such
arbitrator, the agreement can provide that for example, the
Institute of Estate Agents appoint an attorney or advocate with at
least 10 years experience to act as an arbitrator. The provisions
of the Arbitration Act will usually determine the manner in which
such arbitration is conducted.
An order made by the arbitrator is binding on the parties and
can be made an order of court. An arbitration award is also not
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Kuwaiti law permits two contracting parties to select a foreign jurisdiction to govern the terms of their agreement, as well as to hear any disputes that may arise over the agreement. While the law permits courts in Kuwait to issue an order for the execution of judgments rendered in a foreign jurisdiction under limited circumstances, the Kuwaiti courts are generally not in the practice of enforcing foreign judgments.
As budget cuts take effect, a slow-down in construction projects has been evident in Qatar. It is becoming even more difficult to secure payment under construction contracts.
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