Questions & Answers
Can I cancel my house sale contract without extra fees after personal plans changed?
Dear Lawyers,
I signed a Form F with a buyer for the sale of my house as we were planning to leave the country. The contract was signed about a month ago, but the handover is not until August.
Due to personal circumstances changing, we are no longer leaving Dubai and would like to cancel Form F.
The Form F contract stipulates that we have to pay the buyer 10% of the purchase value. The real estate agent is now claiming that we also have to pay the buyer's real estate commission and the conveyancing fee.
Our understanding is that the 10% penalty is the only penalty. Which is correct, and what are the next steps to dispute this?
Also, is there any way to dispute the 10% itself under the law due to personal circumstances changing?
Hello dear questioner,
If the sales contract includes a clear clause stating a 10% penalty in case the seller withdraws from the sale, you must adhere to it because the contract is the law of contracting parties.
Regarding the commission required from you, it can be negotiated.
For further clarification, please provide your WhatsApp number and a copy of the sales contract.
Dear Questioner,
It is important to carefully review the terms and conditions laid out in the Form F contract that was signed with the buyer.
If the contract specifically states that you are required to pay a penalty of 10% of the purchase value in the event of cancellation, then it is likely that you would have to honor this clause.
However, if the real estate agent is claiming additional fees such as real estate commission and conveyancing fee, it is important to consult with us to understand the validity of these claims.
It is possible that these fees may not be enforceable if they were not explicitly stated in the original contract.
If you wish to dispute the 10% penalty under the law, you may need to consult with us to advise you on the specific legal provisions that may apply in your situation.
It may be possible to argue that the circumstances that led to the cancellation of the contract were out of your control and therefore warrant a waiver of the penalty.
In any case, it is advisable to communicate your intention to cancel the contract with the buyer and the real estate agent in writing and seek personal legal advice on the best course of action to take.
It is important to act in accordance with the terms of the contract and the law to avoid any further complications.
Dear Questioner,
Thanks for your inquiry!
Regarding the above, we would like to inform you that:
1. 10% Penalty: Generally enforceable as per Form F contract.
2. Additional Fees: Real estate agent's commission and conveyancing fees might also be due. Check the agreement with the agent.
3- Negotiate:
- Buyer: Explain your change in circumstances and negotiate the penalty.
- Agent: Discuss and potentially negotiate the commission and fees.
4. Dispute Resolution: Engage with the Dubai Land Department or RERA if necessary.
By taking these steps, you can better understand and potentially resolve the issues related to canceling the Form F contract and any associated fees.
Kindly feel free to contact us at [-----] for further inquiry.
Greetings,
Dear Questioner,
In that type of contract (form), 10% is owed to the party who has breached its obligation.
In your case, 10% of the sale amount are due to the buyer only if claimed. If the buyer does not claim it, it is not due.
Therefore, we recommend a friendly settlement with the buyer. Regarding the real estate broker's request, whether from the buyer's broker or the seller's, we cannot respond until we see the contract.
Please contact me at [-----] or email [-----] for assistance.
Thanks!
Your options to avoid paying the fine:
1. Negotiation with the buyer: The buyer may be willing to waive the fine if you offer appropriate compensation, such as paying a sum of money or returning a deposit.
2. You may be able to retract the contract without paying a fine if you have a legal reason to do so.
3. If you cannot reach an agreement with the buyer or prove that there is a legal ground for retreat, you may need to resort to court. The court may ask you to pay a fine, but you may be able to reduce or avoid it altogether if you provide strong evidence to support your position.
Safa
Badr Legal Consultants
Dear user,
The law is against you. The buyer can register a claim for the validity and enforceability of the contract and then receive the house.
The company's commission on real estate is due because it has fulfilled its obligations.
Dear Questions,
Thank you for reaching out with your query regarding the cancellation of your Form F contract for the sale of your house.
I understand your situation has changed, and you are seeking clarity on the penalties involved.
Under the terms of the Form F contract, it is specified that a penalty of 10% of the purchase value is applicable in case of cancellation.
Regarding the additional claims for real estate commissions and conveyancing fees by the agent, the interpretation of contractual obligations can vary.
Typically, the terms of the contract govern whether such fees are permissible beyond the specified penalty.
To address your concerns effectively, I recommend reviewing the exact language and terms outlined in your Form F contract.
This will help determine the validity of the additional claims made by the real estate agent. If these fees were not explicitly stated in the contract, disputing them may be appropriate.
As for disputing the 10% penalty itself due to changed personal circumstances, Dubai law provides certain protections and considerations in such situations.
It may be possible to argue for a renegotiation or mitigation of penalties under specific circumstances.
To discuss your case in detail and explore the best course of action, please feel free to reach out to me via WhatsApp or email.
I am here to provide you with personalized legal advice and representation.
