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

[HaiderAli]

What will happen if one can't pay the installment on a booked (under-construction) project in Dubai.. Say, 4th installment.. What will happen then.. Does the unit will go on re-sale and the invested amount will be given to the owner or the owner will not receive anything...???

[mpat]

Generally all these details are mentioned in the contract and it varies from developer to developer.What u agreed in the contract is governing here.So better u check up with the dev before putting anything up.

[alexft]

Ali,

Many developers can withhold money paid by you as damages and will sell to next buyer.

As Mpat said you need to check contract. Most UAE developers now discourage flipping via terms of the contract. You still can make short term profit but only if you a) can get your hand on very good property and b) have someone to sell that property for you later on.


Regards,

Alex.

[jags]

Originally Posted by alexft

Ali,

Many developers can withhold money paid by you as damages and will sell to next buyer.

As Mpat said you need to check contract. Most UAE developers now discourage flipping via terms of the contract. You still can make short term profit but only if you a) can get your hand on very good property and b) have someone to sell that property for you later on.


Regards,

Alex.

hi

usually we get contract only once 30% is paid.while purchasing any propertie there is hardly anything to look at except sale purchase agreement.this is always one sided. contracts also seldom have anything in buyer's favour. so you mean if you paid 40% n for some reason can not continue to pay you lose all? thats not fair.

[alexft]

Hi Jags,

Yes. However UAE is a good market comparing to the likes of Spain for example. In Spain people were sold properties without proper planning permission, etc.

As to contracts it depends on developer. Due diligience what else can I say


Regards,


Alex.

[HaiderAli]

Hello all,

Thank you all for your replies.. So, the conclusion is that the developer will eat your money and consider it as damages and sell the property to someone else? Anyways, how much time will the developer waits, normally, after the installment due date before taking any serious steps?

And mpat, everyone is asking for the money upfront without any contract or anything - So, how can one check the contract?

[mpat]

Originally Posted by HaiderAli

Hello all,

Thank you all for your replies.. So, the conclusion is that the developer will eat your money and consider it as damages and sell the property to someone else? Anyways, how much time will the developer waits, normally, after the installment due date before taking any serious steps?

And mpat, everyone is asking for the money upfront without any contract or anything - So, how can one check the contract?

If you demand , they will send you DRAFT contract.which mentions everything. I did the same and I adviced the same to some of my friends and eventually they got draft contract for study before they paid anything upfront.One of the developer he mentioned that 30% of the amount will be deducted towards the damage to the developer in order for you to not been able to pay in time.

Generally developers wait for 2-3 months after the time of installements passed , before they take any action.
One more thing , just to point it out to you. In my contract it was mentioned that they will charge interest on the late payment of installements , so I rang up them and ask if they keep this term in the contract, I will not buy since I dont want to involve myself in teh interest game, so they said this is just a clause and we never charged interest to anyone and for around 2 months we dont mind u delaying the payments. and after that My payments are generally delayed by 2 months and more also.

That is the reason I adviced you to talk directly to teh developer, you can get more and more favor from teh developer than what an agent can get for you.

[alexft]

Dear Mpat,

You must of dealt with second class agents in the past

And yes you right most developers will supply draft copy of the contract, so is the brokers if you ask them.



Regards,

Alex.

[fws]

If you really are unable to pay the next installment, then you need to be talking to an agent quickly and get the property sold in the resale market. Then you would get all your money back and not have to keep worrying if you are going to lose the property.

[HaiderAli]

Originally Posted by mpat

If you demand , they will send you DRAFT contract.which mentions everything. I did the same and I adviced the same to some of my friends and eventually they got draft contract for study before they paid anything upfront.One of the developer he mentioned that 30% of the amount will be deducted towards the damage to the developer in order for you to not been able to pay in time.

Generally developers wait for 2-3 months after the time of installements passed , before they take any action.
One more thing , just to point it out to you. In my contract it was mentioned that they will charge interest on the late payment of installements , so I rang up them and ask if they keep this term in the contract, I will not buy since I dont want to involve myself in teh interest game, so they said this is just a clause and we never charged interest to anyone and for around 2 months we dont mind u delaying the payments. and after that My payments are generally delayed by 2 months and more also.

That is the reason I adviced you to talk directly to teh developer, you can get more and more favor from teh developer than what an agent can get for you.

Thanks a lot for your reply.. Anyways, how to talk directly with the developer if the property is in resale.?? Is it possible or this advice is only for the property directly from the developer.. ? Let me know. Thank you Alex for your reply as well..