Questions & Answers
How to terminate property SPA and get refund in case of defaulting on payments
I bought 2 flats, off-plan, in Dubai. The developer completed the project 2 months late and now requesting the remaining balance.
Due to the pandemic, I lost most of my savings and my income has significantly reduced, so I am unable to pay the balance. I requested to change my payment plan and the developer did but added 6% on the top of the total price.
I am disappointed with such a decision considering I joined the project from the start, so should gain some loyalty. Whereas they are offering a 25% deposit + 4 years post-handover payment plan to new buyers now with no interest.
I tried to sell the apartments but this didn’t go down well due to the current pandemic situation and the developer refused to help. I am left with no choice but to terminate both agreements.
I would like legal advice on how to terminate the agreements as I have never done it before and if there is any chance to get any money back from the developer.
Many thanks.
Please note that you have a very weak chance to terminate.
The Developer completed almost on time and they can take the forfeiture process and retain up to 40%.
Therefore, the best option is to sell even with little loss.
Regards
Dear Questioner,
Pursuant to the query, it's very hard to terminate, because the developer may retain your amount as per the contract on termination.
But we will see if there are any clauses. We need to know how much percentage is the building or flat now as per the DLD.
Further, we need to know your matter in detail to give you proper advice.
Kindly contact us on the phone.
Thank you.
