أسئلة وأجوبة
I signed an MOU to purchase a property and paid the amount but the seller didn't provide NOC. What to do?
I decided to purchase a penthouse in Abu Dhabi. I signed an MOU with the seller through a broker. The seller had a mortgage obligation with the bank. The mortgage amount was slightly higher than the transaction amount.
According to the terms of the MOU, I paid off the seller’s mortgage to the bank, covering the purchase amount, while the seller paid the remaining balance.
Sometime after my payment, the broker sent me a Mortgage Release document confirming that the penthouse no longer had any encumbrances.
Next, the seller was supposed to obtain the NOC, after which we would go to the municipality to transfer the title. However, the seller has not obtained the NOC!
According to the broker, the seller is disputing the amount assigned to him for payment by the management company and seemingly intends to sue the company.
It has already been three months since my payment!
The broker says that the seller is willing to sign a court document that would ensure my guarantees. Is this true?
I understand your concern about the delay in transferring ownership of the penthouse apartment in Abu Dhabi after you have paid the mortgage amount.
According to the procedures followed in the Emirate of Abu Dhabi, after paying the mortgage and obtaining a release document from the bank, the seller must obtain a No Objection Certificate (NOC) from the property management company or developer.
This certificate confirms that there are no financial or legal obligations on the property and allows for the transfer of ownership.
In your case:
Seller delays obtaining the NOC: If the seller is in dispute with the management company regarding the amounts due, this may delay the issuance of the NOC, which may hinder the transfer of ownership.
Suggest signing a court document: The seller may suggest signing a legal document that guarantees your rights and confirms his commitment to transfer the ownership upon resolution of the dispute.
This document can be a legally binding contract, but it does not replace the need for the NOC to complete the transfer of ownership.
There are several factors you have to consider. First, we need to understand that the seller's dispute with the management company will directly impact the property transfer process.
If the dispute is resolved, it may not significantly affect your transaction. Apart from that, you may consider taking legal action against the seller to compel them to obtain the NOC.
In order to secure your rights, we need to review the terms and conditions carefully. We will discuss this in detail. Kindly share your WhatsApp number to discuss this further.
The seller is responsible for obtaining the NOC (No Objection Certificate) from the management company before transferring the title to the buyer.
This NOC confirms that all outstanding fees and charges related to the property have been paid by the seller.
In this situation, it is important to have a written agreement between you and the seller outlining the terms of the transaction, including the payment of the mortgage and the transfer of the title.
If you have a signed MOU (Memorandum of Understanding) with the seller, it should clearly state that the seller is responsible for obtaining the NOC before the transfer of the title.
If the seller has breached his obligations by not providing you with an MOU, you can file a case against the seller and claim compensation of 10%.
We can assist you in this regard. Please call us for detailed discussion and assistance.
Dear Questioner,
Thanks for your inquiry.
Regarding the above, we would like to inform you that, in this situation, you are facing a delay in transferring the ownership of the penthouse due to the seller’s failure to obtain the necessary No Objection Certificate (NOC), which is required to complete the title transfer process.
Here’s a concise response to your situation:
Seller’s Obligation: The seller is responsible for obtaining the NOC to complete the title transfer, per the MOU.
Court Document: A court document guaranteeing the transfer or compensation can protect your rights, but it must be reviewed by a lawyer to ensure it is legally binding.
Next Steps:
Demand clear terms in the court document, including a timeline for obtaining the NOC.
Engage a lawyer to review the court document or consider legal action for breach of contract if delays persist.
Legal Options: If the seller fails to act, you can initiate a legal claim to enforce the transfer or recover your payment.
Kindly do not hesitate to reach out to us directly by phone or email for further guidance.
Greetings,
Al Fahad Legal Consulting
It seems the seller is disputing the amount they need to pay to the management company, which is causing the delay in obtaining the No Objection Certificate (NOC) required for the title transfer.
This is a critical point because, without the NOC, you cannot proceed with the title transfer to your name, which is a necessary step for completing the purchase.
In any property transaction, the NOC (No Objection Certificate) from the seller’s mortgage lender and possibly the management company is critical.
The NOC certifies that there are no outstanding obligations on the property and that the property can be legally transferred.
The broker suggests that the seller is willing to sign a court document to guarantee your interests.
This could be a form of assurance that the seller will resolve any disputes and complete the necessary steps for the transfer of ownership.
While the seller seems to be disputing the payment with the management company, they are still obligated to provide you with the NOC.
If the seller refuses to cooperate or delays the process further, you may need to consider legal action to enforce the terms of the MOU and compel the seller to complete the transfer.
If you need further assistance, kindly share your Whatsapp number.
Dear questioner
While a court document could potentially provide some level of assurance, it's important to understand the limitations and potential risks involved, also we need to make another agreement to cover the period of property title transfer.
It requires a detailed discussion, so kindly share your Whatsapp number.
Welcome.
In this case, if the seller is willing to sign a court document to guarantee your rights, this could be a way to protect your interests and ensure the transaction is completed.
However, it's important to verify the details of the legal documents and have them properly formalized, especially with the seller's delay in obtaining the NOC.
We recommend consulting our specialized center for accurate legal advice to protect your rights and ensure the transaction is completed safely.
If my response was helpful, please consider rating our service positively to help us improve the quality of our services.
We are honored to provide you with specialized legal support for your case.
If you have any further inquiries regarding your matter, we would be happy to assist you.
According to UAE law, the seller is obligated to provide a clear title and transfer the property to the buyer after receiving full payment.
In this case, it seems that the seller is in breach of their obligations by not obtaining the NOC and transferring the title to you.
For more details please reach our office on WhatsApp.
