Questions & Answers
Defaulting on paying for a property after purchasing it
Dear Ma'am,
I have received a letter from my property developer about defaulting on payment and requesting to pay within 30 days or they "reserve the right to commence legal proceedings to cancel the unit registration from your name from Dubai land departments records".
I am currently arranging the funds to settle this outstanding amount, however, I would like any information regarding the procedure should I fail to pay in exact time and if you think there is any chance to delay by a week or two.
Also if proceedings were to start, what is the expected process?
Thanks in advance for any support!
Regards,
Dear questioner,
It is better to make the arrangements to pay the amount within the given time period or else contact the developer for additional time.
It is better to inform the developer that you need some more time to arrange funds.
In case of failure, they can terminate the contract and forfeit an amount up to 40% of the purchase price provided the construction progress is between 60-80% and if it is below 60%, they may deduct 25% of the purchase price.
To discuss further, please feel free to contact me!
Regards,
Rajasree Ravivarma
