Getty / Nick Donaldson
Getty / Nick Donaldson
Getty / Nick Donaldson
Getty / Nick Donaldson

The Debt Panel: 'We gave $68,000 to a friend to buy land but he put it in his name'


Felicity Glover
  • English
  • Arabic

We are a group of friends in Abu Dhabi. We saved Dh5,000 ($1,361) each every month for five years and cumulatively invested Dh250,000 to purchase a plot of land in our home country of Bangladesh in 2019.

This was done at the behest of one of our friends, who claimed to be investment savvy. We trusted him implicitly and verbally agreed for him to manage our finances in this deal.

However, we were recently trying to sell the property and realised that it is a disputed plot of land. The matter is in court now and our money is stuck. We agreed to invest the money after our friend said he had done the due diligence on the investment.

We are all in a quandary now. Discussing finances among my friends is proving to be awkward, but it is our hard-earned money. Is there any way we can make our friend pay us back?

We all believe he owes us money after convincing us to invest in this transaction. However, there is no legal document that proves our ownership in the property since the plot is in our friend’s name. It was all done in good faith.

Moreover, our friend does not seem apologetic and believes he is not solely responsible for the loss incurred. Please advise us on what our next course of action should be. RA, Abu Dhabi

Debt panellist 1: Hazeem Balbaa, litigation associate at BSA Ahmad Bin Hezeem & Associates

Ideally, the investors should have registered the property jointly as this would have allowed them to prove their ownership interest without any dispute. Nevertheless, the law allows the investors to recover the amount paid to their friend and they can sue him under the legal principle of tort.

Tort is an alternative source of obligation under the Civil Law. Under the Civil Law, there are five sources of obligations: contract, law, unjust enrichment, harmful act(s) and tort.

In essence, tort under the Civil Law requires three elements in order for a litigant to be successful. Firstly, a wrongful act and/or omission. Secondly, damage(s) must have been sustained. Thirdly, there must be a causal link (connection) between the tort feasor, in this case the friend who made the investment, and the harmed persons.

Do make an effort to discuss the situation calmly and openly with your friends. Now is a good time to put a legal agreement in place, so that you have a claim when the property is sold
Steve Cronin,
founder of DeadSimpleSaving.com

Based on the facts given, the elements of tort could be satisfied and proven before a relevant court. The wrongful act carried out by the friend is the mere fact that he posed as an expert in investing, yet failed to carry out the necessary due diligence.

Additionally, due to the friend’s failure in carrying out the due diligence required, the investors have lost their money that was invested in the property.

Moreover, there is a direct link between the friend’s act and the investors’ loss. Essentially, the investors would be seeking to recover the amounts paid to their friend and they possibly could file a claim for loss of profits.

Alternatively, the investors could bring a criminal action before their friend for deceit. The facts provided do not indicate that there are acts of deceit given that the property was, in fact, purchased. However, if there is any evidence that shows otherwise, the group of investors can simultaneously bring a criminal action against their friend.

Debt Panellist 2: Steve Cronin, founder of DeadSimpleSaving.com

The most value you will probably receive in this situation is a Dh250,000 education in how not to invest your hard-earned money.

From a legal perspective, the most you are expected to receive is a fifth of the value of the land plot and property. You have verbal agreements witnessed by all your fellow investors, and possibly emails and messages.

However, your investing friend is not a professional agent or investor and you willingly invested without conducting due diligence yourself, so caveat emptor, or let the buyer beware.

There are a number of investing mistakes you made that you should never repeat again.

First, you invested with friends and took the investment advice of a friend. Friends and money do not mix well, as you are discovering, as any problem could lead to the loss of money and friendship.

Second, you invested in an illiquid, indivisible asset. What if one of your friends needed to sell early or you disagreed on when to sell?

Third, you did not do your own due diligence and trusted your friend. Fourth, you allowed him to register the property in his own name, with no documents to show you owned any of it. You were completely at the mercy of his abilities and his honour.

Your friend is clearly in the wrong (I think through incompetence rather than malice) but he does not owe you any money until the property can be sold. It could take many years for the court to make a decision.

Do make an effort to discuss the situation calmly and openly with your friends. Now is a good time to put a legal agreement in place, so that you have a claim when the property is sold.

There is a silver lining here. If this investment had been successful, you might have been tempted to invest Dh500,000 in the next plot of land. If that was stuck in the courts, you would lose even more money. At least now you will, I hope, invest more sensibly. A globally diversified stock index fund is a good place to start.

Debt panellist 3: Carol Glynn, founder of Conscious Finance Coaching

This is a difficult situation as not only is your money at risk, but long-term friendships are also under strain. It is no doubt a stressful situation for everyone involved.

This is a Bangladeshi land dispute, so it would be advisable to consult a lawyer who specialises in Bangladeshi law. Regarding efforts to convince your friend to pay you back what you invested, without documents to show proof of your agreement, this is probably at his discretion, unfortunately.

Your best hope to obtain your money and save your friendship is for the sale to go through. Focus on assisting as much as you can to obtain a favourable outcome from the court case.

As there seems to be no legal documentation protecting your investment, it is important to communicate with your friend to reach a mutual agreement to recover your money. However, he seems to have no legal obligation to pay you any part of the investment and you may need to prepare yourself for this possibility.

Let this be an expensive lesson. Never enter financial agreements with people without completing your own due diligence and always have legal documents in place to protect yourself.

This is very important with friends, as you are experiencing, because it is usually much more difficult to resolve problems as there will inevitably be many emotions and feelings involved. Stay calm, communicate and try to find a mutually agreeable solution.

The Debt Panel is a weekly column to help readers tackle their debts more effectively. If you have a question for the panel, write to pf@thenational.ae

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.

As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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UAE currency: the story behind the money in your pockets
Key recommendations
  • Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
  • Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
  • Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
  • More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
MATCH INFO

Uefa Champions League final:

Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports

UAE currency: the story behind the money in your pockets
Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

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Available: Now

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1. Fasting

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3. Hajj

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5. Zakat 

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Day 1

Toss England, chose to bat

England, 1st innings 357-5 (87 overs): Root 184 not out, Moeen 61 not out, Stokes 56; Philander 3-46

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4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

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Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

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While you're here
UAE currency: the story behind the money in your pockets
Results

5pm: Maiden (PA) Dh80,000 (Turf) 1,200m, Winner: ES Rubban, Antonio Fresu (jockey), Ibrahim Aseel (trainer)

5.30pm: Handicap (PA) Dh85,000 (T) 1,200m, Winner: Al Mobher, Sczcepan Mazur, Ibrahim Al Hadhrami

6pm: Handicap (PA) Dh80,000 (T) 2,200m, Winner: Jabalini, Tadhg O’Shea, Ibrahim Al Hadhrami

6.30pm: Wathba Stallions Cup (PA) Dh70,000 (T) 2,200m, Winner: AF Abahe, Tadgh O’Shea, Ernst Oertel

7pm: Handicap (PA) Dh85,000 (T) 1,600m, Winner: AF Makerah, Tadhg O’Shea, Ernst Oertel

7.30pm: Maiden (TB) Dh80,000 (T) 1,600m, Winner: Law Of Peace, Tadhg O’Shea, Satish Seemar

Landfill in numbers

• Landfill gas is composed of 50 per cent methane

• Methane is 28 times more harmful than Co2 in terms of global warming

• 11 million total tonnes of waste are being generated annually in Abu Dhabi

• 18,000 tonnes per year of hazardous and medical waste is produced in Abu Dhabi emirate per year

• 20,000 litres of cooking oil produced in Abu Dhabi’s cafeterias and restaurants every day is thrown away

• 50 per cent of Abu Dhabi’s waste is from construction and demolition

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

Updated: January 26, 2022, 5:00 AM`