Buyer loses job but developer refuses property transfer in UAE:

Can the Property Owner Take Legal Action and Recover Paid Amounts?

Question: I purchased an off-plan property a year ago and paid about 30% of its value. Recently, I lost my job and can no longer afford the instalments. The developer has refused to let me sell the property to a new buyer. Do they have the legal right to block the transfer? What steps can I take to resolve this and recover the money I’ve already paid?

Answer: The off-plan purchase agreement you signed with the developer determines whether they can legally refuse to transfer the property. If the agreement includes a clause requiring you to pay a specific amount before a transfer can be authorized, you must fulfill that condition to obtain a No Objection Certificate (NOC) from the developer.

Legal Recourse:

You have the right to file a complaint with the Land Department to seek an amicable resolution. If this doesn’t work, you can escalate the matter to the court or arbitration, as per Article 11 of Law No. (19) Of 2020, which amends Law No. (13) Of 2008 regulating the Interim Real Property Register in Dubai. This law ensures your right to legal recourse or arbitration despite any stipulations in the agreement.

Recovery of Paid Amounts:

Recovering money directly from the developer is generally not possible unless you file a case to cancel the purchase agreement due to the developer’s failure to meet their contractual or legal obligations. Since your inability to continue payments isn’t due to the developer’s fault, this option may not apply.

Typically, the amounts you’ve paid are recovered from the new buyer when the property is transferred. If the transfer is blocked, recovering these funds becomes more challenging without legal intervention.

Next Steps:

1. Review your purchase agreement to understand the specific terms regarding property transfers.
2. File a complaint with the Land Department to initiate a resolution process.
3. Consider legal action or arbitration if necessary to address the developer’s refusal to transfer.

While the situation is complex, exploring these avenues may help you resolve the issue and mitigate financial losses.

Take Analysis To:

• https://erehomes.ae/blog/my-dubai-rent-living-in-dubai-marina
• https://erehomes.ae/blog/uae-announces-new-basic-health-insurance-for-private-sector-employees-and-domestic-workers-from-january1
• https://erehomes.ae/blog/zero-down-payment