عدم القدرة على مواصلة سداد أقساط العقار بسبب كورونا

Dear questioner,

It is a regular threat; they will not do it as they cannot afford to lose the buyer. All developers will threaten with these letters but actually will wait for completion than they may terminate the contract through the court if they have a buyer.

Also, you have to check the progress of the project before making any payments.

Can the developer have the power to take money from the escrow account?

No

What is her right under Dubai law?

The developer has to file a case to terminate the contract or file a dispute within the land department.

Can she do anything to avoid court order?

They will not move so fast to court, they will go first to the land department. Check the progress report.

The UK is in lockdown at the moment with no proper or normal banking functions.

If you are late for a few months, it will not be a problem.

You can contact us to provide you with legal advice or legal services via phone or email.

Mohamed Noureldin

Legal Consultant (Licensed in Dubai)

Hello,

Oqood certificate must be there. Also, the project was delayed, the completion is 33% and she has paid 33% of the total amount of around 1.18 Million AED.

Generally, the developer sends these kinds of payment notices on non-payment. They will send the notice through RERA (Land Department) and, ultimately, they will go before the court to cancel the agreement and forfeit the deposit of 33% (if it is the deposit) and where there is not an escrow account.

However, as per the COVID-19 situation, the scenario is a little different.

As per Dubai Law, there is no such relief for her to escape from the payment, even in the emergency situation. As per the Law, she has to abide by the agreed terms in the SPA.

The only way out is to apply before the Dubai court in order to modify the terms of the payment and to delay the payment since it is an emergency situation.

Further, the 33 percent which is secured normally gets secured in an escrow account. However, it depends upon the land development authority and the escrow agent whether to release the money if there is a fund crunch for the developer.

There are also instances that the investor gets the money back, through the court. It depends upon the percentage of completion of the project. Normally, as per the law, the escrow deposit should be refunded to the investor, once the project is not completed or canceled.

Lastly, you have to file a suit before the court of law in order to get relief in every way and to modify the terms of the payment for the job loss and to secure the 33% payment.

Please feel free to contact me via phone or e-mail.