أسئلة وأجوبة
How to cancel the MoU to buy an apartment with the broker if the bank did not approve the loan?
Hi,
I have a situation where I signed an MoU and gave my security deposit to the seller's agent. However later, the bank valuation of the property is lower than the selling price.
On my MoU, it has a clause that “the buyer has a right to cancel/negotiate if the bank valuation is not the same as MoU.” I tried to negotiate, however, we didn't agree on the price so I asked to cancel.
Now the agent is threatening me that they will not cancel the MoU and that will deposit my cheque. Later I also came to know that the person I am dealing with is not the same person whose name is mentioned as a broker in the MoU.
The agent I am dealing with is constantly messaging me with threats. I decided not to speak to him and instead, I wrote an email to the broker whose name is mentioned on the MoU but received no response.
I am on a very tight timeline as I need to vacate my apartment in 3 weeks, I found another unit but I don't know if I can pursue this while the initial MoU still not canceled.
Please, I need advice.
Dear Client,
Thank you for contacting me about your situation with the MoU and seller agent. It's concerning to hear about the discrepancies and threats you're facing.
Based on the MoU clause, you have the right to cancel if the bank valuation differs from the agreed price. However, the issue of the agent's identity and threats complicates matters.
I recommend seeking legal advice promptly to address these concerns and protect your rights. Document all communications and refrain from engaging further with the agent.
In the meantime, explore alternative housing options cautiously. Keep attempting to contact the broker named in the MoU for resolution.
If you need further assistance, feel free to reach out to us through Whatsapp or Call
Thanks and Regards
Dear client,
You can apply the MOU as mentioned you have the right to cancel due to the lower price so the legal action now is to serve a legal notice to them telling them that the MOU has been terminated due to the clause (…..) and notify them to refund the paid amount within 5 days, otherwise, you will take the issue to the court.
And in case they ignore it, then you must go to court accordingly.
Please feel free to contact us.
Best regards
Dear Questioner
If there is a clause in the MOU in favor of the buyer, then you will be able to recover the security cheque.
We can negotiate with the seller and broker and also it would be advisable to review the MOU for moving with negotiations or case, if you need our assistance in your matter please share your Whatsapp number.
Greetings,
Memorandums of understanding are non-binding and you can cancel them at any time.
Send us your memorandum of understanding so we can review it and advise you, and we can send him a legal notice on your behalf.
For further inquiries about your topic, you can reach our office or contact us on WhatsApp.
Dear Sir
Please file a complaint against both brokers with evidence of threat with the DLD and have the Agreement you signed revoked.
Form U is the required document for officially canceling an agreement between a buyer or seller and a real estate broker in Dubai.
To cancel the contract, either the buyer or seller must fill out Form U, stating the reason for termination and the date the contract will end, and provide this in writing to the real estate agent.
This is the legally recognized method for terminating such agreements.
Should you require any assistance or clarification, please do not hesitate to contact us.
Yours Sincerely
Nikhat Sardar Khan (FCIArb)(RICS)
Head of DIFC Litigation, Corporate & Arbitration- UAE, MENA and India
Arbitrator | Mediator | DIFC Practitioner Part I and II
Dear Inquirer
We are pleased to serve you and address your inquiries.
As long as the memorandum of understanding stipulates your right to terminate or amend it in the event that the valuation of the property by the bank is less than the price specified by the seller, you can adhere to this condition and take legal measures that protect you from submitting the check for exchange and we are pleased to contact you to provide a litigation plan that serves your interests.
If anything else is required, don’t hesitate to contact us via email or call our offices in Dubai or Sharjah.
Jasim Al Haddad Law Firm Legal Counsel and Consultations
Dear Questioner
If there is a clause in the MOU in favor of the buyer, then you will be able to recover the security cheque.
We can negotiate with the seller and broker and also it would be advisable to review the MOU for moving with negotiations or case.
If you need our assistance in your matter please share your Whatsapp number.
See there are several possibilities to overcome the situation. The terms and conditions of the MOU will prevail in any of the circumstances.
So your rights will be protected. It will be better if you hire a lawyer to handle all these struggles because they can deal with this kind of issue in a manner according to the situation demands.
And even if they are not willing to return the cheque a compensation case can be filed against them including the cheque amount.
We will provide you with the service. Share your WhatsApp number for further discussion.
