Questions & Answers
What happens if you default on the instalments of a purchased property?
Dear Sir/Madam,
I wanted some legal advice regarding my property issue.
I have purchased a quarter share of a hotel room investment in a project in Dubai Marina. I have paid about 31% of the total purchase price. I have signed all the paperwork and obtained the partial property deed.
Due to the Coronavirus, I am unable to continue to make the payments required. Now the developers are saying that by Dubai Law, they are allowed to keep 25% of the total purchase price from the monies I have paid.
I want to know if there is any case law or discretion that the developers have to consider in circumstances such as mine where I want to complete the transaction but I am unable to due to not having a job and financially being able to complete the transaction.
I am trying to sell the interest but at present cannot find a buyer.
Please let me know what my legal rights are if the developer does keep the full 25% of the purchase price, do I have any legal remedies?
Thank you
Z.
Dear Z.,
Based on the Dubai Land Department legislations, the developer has the absolute legal right to keep 25% of the purchase amount in case of the buyer wants to terminate the contract (SPA) after defaulting on paying the remaining amount.
However, and following your explanation, we can help you to sell it. So please, if you can, send us a copy of the SPA at our email to review it and approach our clients who are interested in buying it.
Moreover, once we receive the SPA we will read it carefully and check if there is any legal gap that can be in your favour or extend the time until you get a good financial position, we will inform you regarding that instantly.
Thanks
