أسئلة وأجوبة
I secured a mortgage from the bank and the broker kept delaying until the MOU expired. What to do?
Hi,
I need some guidance regarding a property transaction that is not progressing as expected.
My broker initiated a manual Memorandum of Understanding (MOU) between me (the Buyer) and the Seller, with an expiry date of 01/02/2025. Within this period, I successfully arranged the bank mortgage, property evaluation, and NOC.
However, the broker started giving excuses, such as the seller being hospitalized. Later, the broker attempted to arrange a Power of Attorney (POA).
However, after that, they started ignoring my messages and calls. It now seems like they no longer intend to proceed with me, and the MOU has already expired.
Meanwhile, my bank EMI has already started, and I have paid two monthly installments. The broker is still unresponsive. I have raised multiple complaints through DLD RVS against the broker, but the response has been very slow and unsatisfactory.
I’m feeling stuck and financially burdened.
Please advise
Dear questioner
This is a breach of the MOU on the part of the seller and broker. Now we need to know whether you had claimed appropriately against the seller and the broker.
We also need to check for blocking of the property as well without receiving the compensation.
If you need our assistance in your matter, kindly share your WhatsApp number.
Hello,
I hope you are doing well.
We understand you're facing a stressful situation where you've signed an MOU for a property purchase, and completed all necessary steps, including securing a mortgage and paying EMIs, but the broker has become unresponsive and the MOU has now expired.
This situation raises serious concerns related to breach of agreement, potential misrepresentation, and financial harm due to the ongoing loan payments without receiving the property.
There may be legal grounds to take action against the broker and/or seller, especially since you've already filed complaints with DLD RVS.
In some cases, it may also be possible to seek compensation or cancellation of the mortgage contract under specific conditions.
We understand your situation and can help you explore your legal options to protect your financial interests and pursue the responsible parties.
We recommend you book a consultation with one of our lawyers to properly assess the case and next steps. We also offer a 15-minute free online consultation to understand your situation in more detail.
To book, please contact us by phone or email.
You are already incurring mortgage payments on a property you don't yet own due to the delay, which is a significant financial burden.
The broker's initial engagement, followed by excuses, the attempted POA, and then complete silence, strongly suggests negligence or potentially unethical/misleading behavior.
Hence, the MOU expired due to their default, you will be eligible for a penalty according to the terms and conditions of the MOU.
In order to advise you properly regarding claiming damages and compensation, we have to review the MOU.
Kindly share your WhatsApp number to discuss further about the procedures.
Based on the details provided by you, here are the legal implications and available options:
Legal Options and Guidance:
Breach of MOU:
Based on the details you've shared, the MOU between you and the seller, which had an expiry date of 01/02/2025, is no longer valid since the deadline has passed.
However, it’s important to determine whether the broker's actions or failure to facilitate the necessary steps (e.g., POA) constitutes a breach of the MOU.
If the broker failed to fulfill their obligations, such as facilitating the transfer of ownership or following through with the terms outlined in the MOU, you may be entitled to claim damages from the broker.
Bank EMI Payments:
Since you've already started paying the EMI on the mortgage, this could indicate a binding financial commitment despite the expiration of the MOU.
You should not be burdened with paying for a property that is not being transferred into your name.
If the seller is not responding, you may have the option to claim damages or request a refund of the amounts you've already paid, particularly if you can prove that the failure to complete the transaction is due to the broker’s negligence or the seller’s refusal to cooperate.
Broker’s Accountability:
The broker’s unresponsiveness and excuses regarding the seller’s health and failure to move forward are problematic, particularly given the official complaints you’ve filed with DLD RVS.
It’s advisable to escalate the matter further,
Next Steps:
Legal Notice: A formal legal notice can be sent to the broker and/or the seller, demanding that they fulfill their obligations under the MOU or compensate you for the failure to do so.
Lawsuit: If the situation is not resolved amicably, filing a civil case against the broker for negligence or breach of contract may be necessary.
Seeking Financial Compensation: Given that you've already made EMI payments, we can explore seeking compensation from either the broker or the seller for financial losses incurred due to the delay.
How We Can Help:
I recommend reviewing the MOU, your mortgage documents, and the official complaints you’ve filed to assess all the details before proceeding.
We can then discuss the best course of action, whether it’s sending a legal notice to the broker, filing a case, or taking further legal steps.
Please feel free to reach out to me to set up a consultation where we can go through the documents and move forward with the best solution for you.
Best regards,
Omar Mosaad
Senior Legal Consultant
OS Legal
Greetings!
If the Form F was signed by both parties, you need to send a formal legal notice to the broker requesting to complete the transaction, and give 5-7 days for this.
After expiry of the mentioned period, you can file a civil suit in the court claiming 10% of the property value as compensation.
For assistance, please contact us by phone.
