Failed to pay the installment??? What will happen?

[PropGuy]

What is the legal standing of reservation form, I have paid 10% for a property and only signed a reservation form, still did not signed any SPA, can I get my money back from the developer. In reservation form it’s mentioned that 10% will be forfeited if further installments are not paid.

I guess that means only 10% can be forfeited.

 

[memo123]

Lucky you

My Mou states that i loose all that i paid. and I have paid 50% for 0 construction after 11 months. I didn't sign my spa for it states not only will
i loose all that I paid + all legal cost + finance cost+ incurred losses because of devaluation of property price .
My developer literally is taking buyers to the cleaners and only fools would sign such an spa . who writes such sh...................... and why do they send the spa 9 months after the reservation form and the first installment is paid
isn't that illegal?

I guess that means only 10% can be forfeited.

 

[zanis]

Dubai Speculators Quit as Lending Drought Bursts Desert Bubble

Watch out with Dubai - the current crash has scared the banks and other lenders from Dubai and there will be many defaults - plus the property value will go down when the market stabilizes - thats my opinion. There is comment here on it.

 

[Pietman0_0]

I have the same question. I also signed a booking form with a 5% payment without signing any Contract with Developer.

The booking form also states the 5% fee is non refundable so i reccon i wont be able to get any refund on this.

However I do wish to know if under new Dubai property law if i will be exempt for any future moneys to the developer, i.e. can i forfeit the 5% and walk away??

It makes more financial sense to invest money elsewhere right now with higher returns than to continue paying towards property installments. The risk is far less.... especially since nobody can really predict how regulations regarding property / mortgages etc. is going to change in the future.

 

[jackcze]

I would suggest speaking with RERA first to get the lowdown on the regulations. They seem to change all the time so no one really understands them.

If you still have doubts, consult a solicitor. These are important issues so it may be worthwhile investing in some legal advice.

 

[haider_dubai]

I think we are in the same boat. What I believe is Memorandum of Understanding "MOU" is not an agreement, until and unless the agreement is offered by the developer to be signed, whatever money paid is just a deposit with the developer and should not be forfeited.

On the other side ,I have an other experience , I booked one studio in IMPZ about 2 years back , paid 30% on reservation form, and after that before signing the agreement the project was cancelled. The developer informed the investors to apply for the refund of their money with out any premium.

Even after saying that they are not refunding the money saying that we don’t have money now , if the investors want they can go to the court.

They claim that they have refunded the money to about 20% of the investors who applied fist.

This is what is happening here in Dubai and UAE.

What to do? Where to go? This is the question......!

I have the same question. I also signed a booking form with a 5% payment without signing any Contract with Developer.

The booking form also states the 5% fee is non refundable so i reccon i wont be able to get any refund on this.

However I do wish to know if under new Dubai property law if i will be exempt for any future moneys to the developer, i.e. can i forfeit the 5% and walk away??

It makes more financial sense to invest money elsewhere right now with higher returns than to continue paying towards property installments. The risk is far less.... especially since nobody can really predict how regulations regarding property / mortgages etc. is going to change in the future.

 

[Roshan]

I have the same question. I also signed a booking form with a 5% payment without signing any Contract with Developer.

The booking form also states the 5% fee is non refundable so i reccon i wont be able to get any refund on this.

However I do wish to know if under new Dubai property law if i will be exempt for any future moneys to the developer, i.e. can i forfeit the 5% and walk away??

It makes more financial sense to invest money elsewhere right now with higher returns than to continue paying towards property installments. The risk is far less.... especially since nobody can really predict how regulations regarding property / mortgages etc. is going to change in the future.

Of course you can walk away. It was just a signing amount. Even if it's an SPA, nobody can do anything to you.

If developers can roam around scot free after doing away with millions of dirhams, what is your 5%.

If you feel comfortable to walk away, do just that and do not worry about anything.

Roshan

 

[Direct2Dxb]

What is the legal standing of reservation form, I have paid 10% for a property and only signed a reservation form, still did not signed any SPA, can I get my money back from the developer. In reservation form it’s mentioned that 10% will be forfeited if further installments are not paid.

Is your property in Dubai?
Read the thread on interpretation of law number 13