Questions & Answers
I signed From F for a property purchase with promise on extension but it was rejected. What to do?
I made an offer and signed Form F for a property purchase. My decision was based on the property assessment as an End Unit and its capacity to extend the living room to my requirements.
The two agents (buyer and seller both from the same agency) confirmed that a living room extension was possible at a fee payable to Emaar. I was ok with the fee. I made an offer based on this information and signed the Form "F" prepared by the agents.
Later upon receiving the CAD drawings, it was noted that Emaar would not give NOC as the living room walls were structural. I am an end user and I can't accept this unit for the rest of my life as it doesn't meet my needs.
I want to get out of this Form "F" as my agent misled me (doesn't matter if intentionally or unintentionally). The problem is agent is rewarded 2% for misleading me and I am facing a penalty of 10%. it is only 3 weeks into the deal and 5 weeks till signature.
Can I get out of this legally and agent find a new buyer for the seller?
Form "F" is a binding contract between the buyer and seller, but it should be based on good faith and accurate information.
If you can demonstrate that your decision was based on incorrect information provided by the agents (regarding the living room extension), you may have grounds to argue for the contract’s cancellation.
The penalty clause in Form "F" (10% in this case) may apply, but if you can prove that the agents misrepresented a key fact, you might be able to negotiate your way out of the contract without facing the penalty.
Ensure you have the CAD drawings and the communication from Emaar indicating that the living room walls are structural and cannot be extended.
For further assistance kindly share your WhatsApp number.
Dear questioner
We need to review Form F and your previous written communications in detail and the chances to withdraw from Form F on the grounds of material breach on the part of the agent.
If you need our assistance in the same, kindly share your Whatsapp number.
Thank you for reaching out, and I understand how frustrating this situation must be for you.
From what you’ve explained, it seems that you were misled by the agents regarding the ability to extend the living room, which was a critical factor in your decision to proceed with the property purchase.
If the agents provided incorrect or misleading information, whether intentional or not, it could be argued that there was a misrepresentation that led you to sign Form "F."
Legally, misrepresentation can give grounds to void a contract, especially if the details given were material to your decision.
Given that you relied on this false information, you may have grounds to argue that Form "F" should be voided or rescinded.
However, the specifics of your case, including the content of Form "F" and communications with the agents, will be important in determining the best course of action.
To protect your interests and explore potential options to exit the deal without incurring significant penalties, I would recommend a detailed review of Form "F" and all correspondence with the agents.
We can also consider addressing the issue with the real estate agency directly, possibly seeking a resolution where the agent finds a new buyer to mitigate any potential loss.
Please feel free to reach out to me on WhatsApp, phone, or email to discuss this matter further and review the necessary documents in detail.
In your case, you signed Form F (the Sale and Purchase Agreement) for a property based on misinformation provided by the agents regarding the ability to extend the living room, which later turned out to be incorrect.
You wish to exit the deal without incurring the penalties, as the property no longer meets your expectations due to the structural limitation.
Legal Grounds to Exit the Deal:
Misrepresentation:
Under UAE law, if you were misled by the agents regarding a material fact (in this case, the possibility of extending the living room), you may have grounds to claim misrepresentation.
The Civil Transactions Law (Federal Law No. 5 of 1985) addresses fraudulent misrepresentation, whether intentional or unintentional if it induced you to enter into the agreement.
Article 185 of the Civil Code: Misrepresentation can lead to the annulment of the contract if it is proven that the misled party would not have entered the contract had they known the truth.
If it can be demonstrated that the agents negligently or fraudulently misrepresented the property’s potential, you may be entitled to void the contract and recover your deposit without incurring the penalties specified in Form F.
Role of Form F:
Form F binds both the buyer and the seller to the terms of the contract, including penalties for withdrawal.
However, misrepresentation, particularly on a material issue like structural changes, could form a legal basis for voiding Form F if the contract was signed based on incorrect or misleading information provided by the agents.
The agent's representation of the property as extendable was crucial to your decision, and you could argue that Form F should be voided due to this misleading information.
Agent's Responsibility:
Both agents (for the buyer and seller) are legally bound to provide accurate information about the property.
You can file a complaint with RERA (Real Estate Regulatory Agency) against the agents and the brokerage firm for providing incorrect information that led to your purchase decision.
If RERA determines that the agents acted improperly, this could strengthen your case.
Penalties:
The 10% penalty stipulated in Form F is generally enforceable if you unilaterally withdraw from the deal without a valid reason.
However, if you can establish that the deal was based on misrepresentation, you can request the cancellation of the sale without the 10% penalty and seek to recover your deposit.
In conclusion, you likely have legal grounds to exit the deal if you can demonstrate that you were misled by the agents, particularly if the extension of the living room was a decisive factor in your decision to buy the property.
However, navigating this process will require careful legal steps and potentially pursuing legal action under UAE Civil Law.
Best Regards,
Omar Mosaad
