Q: Refund from Escrow Account I have purchased a unit from Danube Properties. According to them, the project handover will be in 2024 or 2025. Due to some unexpected financial crisis, I can’t pay the instalments, due to which I have some penalty amount as well. My question is if I cancel the unit, will I get the refund of my monthly payments since the account to which I am transferring the amount is an escrow account, not the direct Danube account? Thanks

Q: I have booked a unit under construction with a developer 3 years ago. I paid 30% during construction and 70% was due since Jan this year. When I booked the unit, my plan was to get financing from a bank to cover 70% payment because I was working with a semi-government company. But I lost my job and my credit score went low due to defaulting on financing payments and I could not get financing from the bank. I have contacted the developer asking them for refund or change of payment plan but they give me instalment plan for 5 years and increased the price which I cannot go for. I am not in a stable situation with my current job and the company gave me 3 months unpaid leave because of Coronavirus situation. The developer completed 100% construction and they sent me a building completion certificate in Jan this year and now they are calculating 3% late payment fee every month as per SPA. Now I do not have any source of income. Can I get refund from developer so I can cover my expenses?

Q: 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.

Q: I have purchased a studio in Dubai, 30% was paid already (AED 171,000). The handover is getting delayed already 4 months, the developer is already in his grace period for handover but the apartment is also not registered in DLD. I have paid almost all that I have but I am not able to pay anymore because of some financial issues. Will I get my money back? Would it be possible to pay a lawyer after execution not in advance? Thanks in advance for your answers.

Q: Hello! Last month I found an apartment that is still under construction with a great payment plan. I decided to buy it! There were several calls between me and the developer and we agreed that I transfer the booking fee. Note: When I sent the amount no SPA was signed and I haven’t even received a SPA. Nothing has been signed! Neither from me nor from them! The amount is about $18.500. My passport was invalid too and I needed to make a new one. So they could not register me at DLD also. Now, I have some problems with continuing the payments and want to cancel the payment plan and asked for a refund. They haven’t given me any answer yet and been telling me to wait for next week, wait for next Friday and so on. What can I do to receive a refund? Do I have a right to receive the full amount back as there is no signature made by me & no registration at DLD? Thanks

Q: We signed DLD Form A, and agreed to buy a villa worth AED 11.7M, and gave a security cheque of AED 1M. But now due to some funds issues, we are not able to buy that villa. We are requesting the seller to terminate the contract and also we will bring any other buyer for you. Now, the seller doesn't want to cancel the contract and threatens that he will deposit the security cheque. Can anyone guide how to come out of this issue? Will you assist us with this, please?

Q: I booked an off-plan property with a developer in a project in Dubai. I have paid 10% + 4% DLD. It's been 2 months and still, I don't have SPA. Plus, the above amount is in favor of the developer's account and not escrow. Please advise if this is normal and what questions I should ask the developer. Can I withdraw the money from the developer? Will he be liable to hold any % of my money for cancellation?

Q: In 2023, I purchased a property and began making monthly installment payments through their 1% payment plan. Unfortunately, due to financial struggles caused by my business collapse, I’ve been unable to continue paying. Despite the project being only 10% complete, the developer refused to grant me additional time, and instead, began adding penalties. As I'm not based in Dubai, communication has been difficult. They’re threatening to terminate the contract, forfeiting all the amount which I paid so far. I’ve already paid them 30%. They are demanding immediate payment despite my current bankruptcy. Is there a chance to recover the amount I’ve paid so far? How much will they deduct? Will they forfeit the entire amount I’ve paid?

As the world is currently experiencing a major lockdown and suspension of almost all commercial and civil operations, the question arises in the novelty of Coronavirus outbreak on how serious it is to be dealt with as a Force Majeure.

An interview-format article covering the topic of force majeure in the UAE, in light of COVID-19. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

An interview-format article covering the topic of the new amendments to the laws in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

This Law establishes interim property register in which sale contracts, off-plan sales, and other off-plan legal dispositions of real property are registered prior to inclusion in the property register maintained by Dubai Land Department.

This Resolution approves the Implementing Bylaw of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.