Questions & Answers
Claiming back down payment from a broker after securing a house loan
Dear Dr Amira,
I entered into an agreement with mortgage brokerage to help me procure a loan for a property in Dubai, further to which the firm asked me to pay upfront an amount of AED 470K.
This included down payment and other misc. charges. The brokerage company has managed to procure the loan but now have used my down payment and does not have the funds to conclude the transfer.
What are my legal options?
Please advise
Dear Questioner,
You may have to send us the mortgage agreement with the financial institution that you contracted with, in addition to the agreement with the mortgage brokers to review and advise you in regards to your obligations and the best way to terminate the relationship.
As preliminary advice, we would assume that cancelling the mortgage will be very difficult considering the market of real estate conditions and it would be impossible for the bank to take such losses on your behalf.
However, there might be a chance for you to exit the agreement if you take on such losses and sell the property to close the mortgage and pay the relevant fees and penalties.
We have the relevant experience to negotiate such exit with the bank when possible. Send me the documents to my email and I will revert back to you the soonest.
Ahmed Elnaggar
