Closing a business deal? Buying real estate? Considering marriage? One skill that cuts across all these life decisions is DD - due diligence. Stand by for an expert opinion from a dual-qualified lawyer in Dubai and India.
As a lawyer practicing in both Dubai and India, I’ve seen firsthand how the lack of basic due diligence can lead to avoidable legal, financial, and emotional fallout.
How do lawyers approach this process differently—and how can you apply that mindset in your personal or professional life? These few steps below are simple to follow PROVIDED they are looked at with insight and not in hindsight. God Bless, as lawyers we are (largely) able to:
1. Define the Objective Clearly
- Lawyers never start without a goal. Before we begin due diligence, we ask the 5W/H:
a. What do I want to find out?
b. What am I trying to protect myself from?
c. What’s the worst-case scenario?
In Business:
a. Are there hidden debts?
b. Litigation?
c. Regulatory violations?
In real estate:
a. Is the title clean?
b. Any pending dues or encroachments?
c. A long gap between the Agreement and the Conveyancing?
In marriage:
a. financial obligations?
b. past legal issues?
c. family responsibilities?
d. Health abnormalities which are not being disclosed?
2. Paper Trail is Everything
We lawyers don't rely on verbal assurances—we verify everything with documents. We ask for:
a. In Business: MOA, AOA, trade license, VAT filings, litigation history
b. In Real Estate: Title deed, NOC, payment receipts, tax clearance, sanctioned plan
c. In Marriage: ID proofs, past divorce or custody orders, financials (in some cultures, even credit scores)
Free Tips from a Lawyer:
Dubai: Always verify corporate documents via the DED or Free Zone portals.
India tip: Use MCA, RERA, and EC (Encumbrance Certificate) portals to check status.
3. Independent Verification
Lawyers don’t just accept the documents—we verify them independently.
In Dubai – We call the registrar, developer, bank, or licensing authority. Run a quick check on court websites for pending litigation.
In India we use RTI (Right to Information in India) or local government portals to verify ownership or criminal cases.
Red Flags Are Not Deal Breakers—They Are Conversation Starters. Lawyers know that problems may exist—but how they’re handled tells you more than the problem itself.
We help with answering:
a. Is the seller transparent about the issue?
b.Are they willing to give indemnities or warranties?
Is there a clean path to legal regularization?
Silence or evasion is a bigger red flag than a disclosed issue.
4. Insist on Written Agreements - After due diligence, never close a deal on a handshake. Draft clear contracts with:
a. Conditions precedent
b. Exit clauses
c. Penalties
d. Justice Delayed is Justice Denied
e. Dispute resolution (India/UAE jurisdiction? Choose wisely.)
5. Hire a Lawyer When It Matters - You don’t need legal help for everything. But when the stakes are high, a lawyer:
a. Spots risks you didn’t see
b. Crafts protective clauses
c. Negotiates smarter
Due diligence isn’t about mistrust—it’s about informed trust.
Final Word:
Due diligence is your first line of defence, not just a legal checkbox. Whether you're forming a company, buying your dream home, or saying "yes" to a life partner, ask yourself: Have I verified, not just trusted?
If you’re unsure, it’s always worth asking a lawyer. Like me!
For more information or legal support and advice, contact Al Safar and Partners Law Firm in Downtown Dubai, UAE, on 0527583267 - [email protected] - https://www.alsafarpartners.com/
Written by: Mr. Rohit Gulati - Partner & Senior Legal Consultant at Al Safar and Partners Law Firm