We use cookies and similar technologies that are necessary to operate the website. Additional cookies are used to perform analysis of website usage. By continuing to use our website, you consent to our use of cookies. For more information, please read our Cookies Policy.

Closing this modal default settings will be saved.

Can a buyer terminate a property purchase agreement in case of losing his job ?

Owner's Profile

Staff Writer, TLR

Published on July 14, 2023, 17:41:00

137

contract buyer seller property known agreement sell

A contract between the buyer and the seller of the property is known as an agreement to sell. The purchase agreement can be terminated in front of the court, however since losing your employment is not regarded as a force majeure, the burden for doing so will lie on the buyer.

According to Article 11 of Law No. (19) of 2020 Amending Law No. (13) of 2008 Regulating the interim Real Property Registrar in the Emirate of Dubai, the developer may terminate the off-plan sale agreement, retain up to forty percent (40%) of the value of the real property unit specified in the off-plan agreement, and refund any amounts above this to the buyer when the percentage of completion of the real property project exceeds eighty percent (80%).

The developer is entitled to retain up to forty percent (40%) of the value of the real property unit when the completion rate is between sixty percent (60%) and eighty percent (80%). When the completion percentage is less than 60%, the developer may keep up to twenty-five percent (25%) of the value of the real estate unit.

Despite the limitations and procedures described in the contracts governing termination and compensation, the buyer will still be permitted to institute a lawsuit. When the developer cancels the project as a result of a final reasoned decision by RERA (Real Estate Regulatory Authority), or when the developer has not begun work on the project for any reason beyond his control without negligence or omission on his part, the developer is required to refund all payments made by the purchaser under the procedures and guidelines outlined in Law No. (8) of 2007.

As for the new buyer, a person does not have the right to ask the Court to transfer the property purchase agreement to the new buyer, because you cannot compel the developer to enter into a contract with someone else. A person can politely resolve this issue with the developer so that he will agree to grant you a letter of No Objection so that he/she can sell the property to the buyer at the DLD (Dubai Land Department) and collect your payment from him.

Finally, the Rules and procedures outlined in this Article shall not be construed to bar the purchaser from seeking judicial relief, and the court shall make its decision after carefully considering the purchase agreement’s documentation.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004

Comments