Misrepresentation by builder/seller

[Anwar]

I have bought a property in Dubai and I need to take legal action against the Seller/Builder.

The summary my case is :

As per the Agreement of Sale “Every apartment enjoys scenic waterfront view.” However when I took possession on March 27, 2007 I noticed that the apartment does NOT have “a waterfront view” and hence there has been a willful misrepresentation which has caused a loss to me in the value of the property.
The Agreement of Sale stipulates that the completion date “shall not be later than 28th February 2005.” and that if “the seller is unable to deliver possession of the Unit up to 28th February,2005, the Seller shall pay interest to the Buyer on all payments made by the Buyer, from 1st March, 2005 till the date the possession of the Unit is offered to the Seller.” However no such payment was made to me inspite of my repeated requests and the fact that the Unit was handed over to me after a delay of 2 years.
The Sale agreement lays down that the builder will charge AED 4 per square foot as maintenance charges for the first three years. However he has invoiced me @ AED 10 per sq.ft.
I have agitated these matters with the builder who says that he is not bound by the Agreement which was between me and the seller, and not him.
Could anyone advise me whether this is actionable under the law. If so, what would the approximate fees be? Would it be a fixed fee or would it be paid contingent upon obtaining a favourable decision from the court of competent jurisdiction?

 

[financier888]

taken possession ?

I have bought a property in Dubai and I need to take legal action against the Seller/Builder.

The summary my case is :

As per the Agreement of Sale “Every apartment enjoys scenic waterfront view.” However when I took possession on March 27, 2007 I noticed that the apartment does NOT have “a waterfront view” and hence there has been a willful misrepresentation which has caused a loss to me in the value of the property.
The Agreement of Sale stipulates that the completion date “shall not be later than 28th February 2005.” and that if “the seller is unable to deliver possession of the Unit up to 28th February,2005, the Seller shall pay interest to the Buyer on all payments made by the Buyer, from 1st March, 2005 till the date the possession of the Unit is offered to the Seller.” However no such payment was made to me inspite of my repeated requests and the fact that the Unit was handed over to me after a delay of 2 years.
The Sale agreement lays down that the builder will charge AED 4 per square foot as maintenance charges for the first three years. However he has invoiced me @ AED 10 per sq.ft.
I have agitated these matters with the builder who says that he is not bound by the Agreement which was between me and the seller, and not him.
Could anyone advise me whether this is actionable under the law. If so, what would the approximate fees be? Would it be a fixed fee or would it be paid contingent upon obtaining a favourable decision from the court of competent jurisdiction?

If you have already taken possession in light of these breaches, chances are slim and none that you'd prevail in a civil legal action. When it was being built hadn't you inspected it and noticed it would not have the view you 'thought' you bought?

Insofar as the increase in maintenance, common charges - if you look closely, you should see language in the body of the contract that says 'subject to change' - so you can forget about pursuing that angle and simply get moving to organize an ownership association (BTW AED 10 is a reasonable fee - most are twice that!)

Let's say you go to court and win - does the person you bought from have the money to pay you back? as no doubt they took a premium. Chances are you'll never collect. Going against the developer - good luck. For a start, it will cost you AED 30,000 to FILE THE CASE!! and that's NOT including the legal fee's.

Try RERA first, as it won't cost you anything but resign yourself to the fact that you may just have to live with it and be happy you are getting a completed unit!! At least, eventually, there's a way out.

In my opinion, that fact that you took possession in March suggests that you 'agreed and accepted' the conditions and a magistrate will most likely think it's buyers remorse rather than a substantial breech or tort.

good luck

 

[financier888]

I have bought a property in Dubai and I need to take legal action against the Seller/Builder.

The summary my case is :

As per the Agreement of Sale “Every apartment enjoys scenic waterfront view.” However when I took possession on March 27, 2007 I noticed that the apartment does NOT have “a waterfront view” and hence there has been a willful misrepresentation which has caused a loss to me in the value of the property.
The Agreement of Sale stipulates that the completion date “shall not be later than 28th February 2005.” and that if “the seller is unable to deliver possession of the Unit up to 28th February,2005, the Seller shall pay interest to the Buyer on all payments made by the Buyer, from 1st March, 2005 till the date the possession of the Unit is offered to the Seller.” However no such payment was made to me inspite of my repeated requests and the fact that the Unit was handed over to me after a delay of 2 years.
The Sale agreement lays down that the builder will charge AED 4 per square foot as maintenance charges for the first three years. However he has invoiced me @ AED 10 per sq.ft.
I have agitated these matters with the builder who says that he is not bound by the Agreement which was between me and the seller, and not him.
Could anyone advise me whether this is actionable under the law. If so, what would the approximate fees be? Would it be a fixed fee or would it be paid contingent upon obtaining a favourable decision from the court of competent jurisdiction?

Most often, when you are buying a 'contract' to purchase from someone that is reselling their contract, (flipper) the contract of purchase you sign with them SHOULD be a mirror of the one they have signed with the developer. However, if the original contract between your seller and the developer does not contain the representations you noted, (interest for being late, seaview etc) , the developer is correct - you need to take the person you purchased from to court.

You need to examine the 'SPA" and see if said representations are included in the SPA - if they are, you have a case against the developer.

However, the downside - it will cost you at least AED 30,000 + to go to civil court. That is the minimum filing fee!! PLUS legal expenses. So, you have to calculate the interest due you, and if the developer is govt linked - forget it! Your case will go nowhere quick.

I appreciate your angst, however, considering those that have purchased and made payments for years and still stuck looking at a pile of sand - be happy! At least you have a completed unit that can be rented or resold.

good luck