D
duncheski
New Member
legal advice re islamic mortgage
I wondered how law 13 affects my position - I purchased a 2 bed apartment off plan in the marina in oct 2008 for 1.5 million. I took out an islamic mortgage and put down 15% deposit. I was advised numerous times that i wouldn't need to pay a penny until the property was complete - around 2.5 yrs estimated from date of purchase. I was then subsequently advised that i would need to paya small 'profit' payment each month until completion but that this would not amount to more than 1,000 dhs/month.
6 months later i find i am paying an average of around 5,500/month with further increases to come once the bank release more funds to the developer, rising to a max of around 7,500/month.
I am obviously very annoyed to say the least that over the 3-4 month period prior to purchasing the property i was never told about the severity of my financial commitments despite numerous questions asked about this. The sales/purchase agreement is not totally clear.
I want to know
a) if i have a case of suing the bank for negligence. Apart from the crashing market since october i am faced with paying a total of around 250,000 dhs pre-completion which will be made up entirely of interest payments, ie none of the capital borrowe will have been paid off! What a scam these islamic mortgages are.
b) Whether the recent law that all properties need to be registered with land department is relevant - ie if my property isn't registered am i entitled to recover my interest payments made to date and also cancel the deal, ie get my deposit back?
Any help/advice would be much appreciated.
Duncan
I've since done some research on islamic mortgages and the general advice is that you are not supposed to be pay anything prior to completion of the property. I wish i'd gone with a conventional mortgage, i might be paying more per month but at least some of the capital would be paid off.
I wondered how law 13 affects my position - I purchased a 2 bed apartment off plan in the marina in oct 2008 for 1.5 million. I took out an islamic mortgage and put down 15% deposit. I was advised numerous times that i wouldn't need to pay a penny until the property was complete - around 2.5 yrs estimated from date of purchase. I was then subsequently advised that i would need to paya small 'profit' payment each month until completion but that this would not amount to more than 1,000 dhs/month.
6 months later i find i am paying an average of around 5,500/month with further increases to come once the bank release more funds to the developer, rising to a max of around 7,500/month.
I am obviously very annoyed to say the least that over the 3-4 month period prior to purchasing the property i was never told about the severity of my financial commitments despite numerous questions asked about this. The sales/purchase agreement is not totally clear.
I want to know
a) if i have a case of suing the bank for negligence. Apart from the crashing market since october i am faced with paying a total of around 250,000 dhs pre-completion which will be made up entirely of interest payments, ie none of the capital borrowe will have been paid off! What a scam these islamic mortgages are.
b) Whether the recent law that all properties need to be registered with land department is relevant - ie if my property isn't registered am i entitled to recover my interest payments made to date and also cancel the deal, ie get my deposit back?
Any help/advice would be much appreciated.
Duncan
I've since done some research on islamic mortgages and the general advice is that you are not supposed to be pay anything prior to completion of the property. I wish i'd gone with a conventional mortgage, i might be paying more per month but at least some of the capital would be paid off.
