أسئلة وأجوبة
Can I stop paying and terminate the property purchase with refund for delaying the project?
In 2023, I purchased a property and began making monthly installment payments through their 1% payment plan. Unfortunately, due to financial struggles caused by my business collapse, I’ve been unable to continue paying.
Despite the project being only 10% complete, the developer refused to grant me additional time, and instead, began adding penalties. As I'm not based in Dubai, communication has been difficult.
They’re threatening to terminate the contract, forfeiting all the amount which I paid so far. I’ve already paid them 30%. They are demanding immediate payment despite my current bankruptcy.
Is there a chance to recover the amount I’ve paid so far?
How much will they deduct?
Will they forfeit the entire amount I’ve paid?
We understand your concern.
In order to understand your rights over the amount you paid, we need to review the contract. While considering natural justice the developer has to return your investment after deducting their expenses.
We will check the possibilities in detail. Kindly share your WhatsApp number to discuss this further.
While there is a risk that the developer could forfeit all amounts you’ve paid so far due to their contractual rights concerning non-payment, there are avenues available for negotiation and potential legal recourse that could allow you to recover some or all of your funds depending on the specifics of your agreement and local laws governing such transactions.
Here's an overview of your situation and the potential legal implications under UAE law:
1. Contractual Obligations and Potential Penalties:
Payment Plan and Default: You've entered into a 1% monthly installment payment plan with the developer, a common scheme that allows buyers to pay for properties over time. Failure to make these payments constitutes a breach of contract, which may result in penalties as stipulated in your agreement.
Termination and Forfeiture: If the contract is terminated due to non-payment, developers often have the right to forfeit amounts already paid. The exact forfeiture amount depends on the contract terms and the stage of construction. Given that the project is only 10% complete and you've paid 30%, there's a possibility that a significant portion of your payments could be forfeited.
2. Legal Framework:
Law No. (19) of 2017: This law amends Law No. (13) of 2008 and outlines procedures when a purchaser defaults on payments. Typically, the developer must notify the Dubai Land Department (DLD) of the breach. The DLD then provides a 30-day notice to the purchaser to rectify the default. Failure to do so may result in contract termination and forfeiture of payments made.
3. Potential for Recovery:
Negotiation: You may attempt to negotiate with Danube Properties for a grace period or a revised payment plan.
However, developers are not legally obligated to accommodate such requests, and their willingness to do so may vary.
Legal Recourse: If you believe the developer has not adhered to legal procedures or if there's a dispute about the forfeiture amount, you can file a complaint with the Dubai Land Department or seek legal action. However, litigation can be time-consuming and may not result in a favorable outcome, especially if the contract terms are clear.
4. Recommendations:
Review Contract Terms: Carefully examine your contract to understand the clauses related to payment defaults, penalties, and termination.
Communicate with the Developer: Maintain open communication with Danube Properties to discuss possible solutions, such as restructuring the payment plan or exploring other amicable resolutions.
I hope this information provides clarity on your situation. If you need further assistance or have more questions, feel free to ask.
Regards,
Omar Mosaad
OS Legal
Dear questioner
Recovery of the amount depends upon the agreement as well they cannot forfeit the amount if they are also in fault.
If you need further clarifications kindly share your Whatsapp number.
Hello dear questioner,
In this case, we must first review the contract. If there is any breach on the part of the developer, we terminate the contract and request a refund.
If there is no breach of the contract, we try to settle to recover your money and terminate the contract.
For further discussion, please share your WhatsApp number
