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Watch your steps while buying from the secondary market

Discussion in 'Dubai property' started by Roshan, May 25, 2008.

  1. Roshan

    Roshan New Member

    In the past week, I came across three cases where the buyer is stuck in the secondary market, while the seller has got the deposit of the buyer and has casually decided not to sell. So the only way out is he serves a legal notice to harrass the buyer to the point of succumbing and force him to take the deposit back so that he can sell it for a higher price.

    A lady has been visiting the courts, RERA for 1 year under similar circumstances.

    Heard another horror story in the secondary market. The buyer paid Dhs 500,000 for a commercial in the secondary market, The seller changed his mind. Now the seller has served a legal notice and the case has gone to court...and yes, he has encashed the cheque of Dhs 500,000.

    The Buyers contract has some clauses which favor the seller. What they didn't do was to approach an attorney and ensure to cross the T's and dot the I's

    The seller has approached RERA and...the battle goes on. I don't RERA can do much after what I have seen and heard from these sources.

    What everyone needs to do is to take the contract to an attorney and ask him to carry out the transcation in your favor. It costs money, but your investment is secured.

    Never, never give a cheque as an advance. The seller is equally desperate to sell as much as the buyer needs to buy. Insist that the payments will be done through a bank certified cheque payable only at the time of the transfer at the developers office. Do not play into the sellers hands.

    If anybody could post attorney details which could benifit fellow members, it would be helpful.

    So then...take care before you buy. Seek an attorneys advice ( a competent one and not the rif rafs which are in the market ).

    Regards

    Roshan
     
  2. Investoman_uae

    Investoman_uae New Member

    I really hate when things like this happen. I have a couple of investments and will decide to sell in 2 months or so. If I agree with the buyer for him to pay a deposit, I will not change my mind even if the market has gone higher because thats his profit not mine.

    We need to have some ethics as human beings first... if I made a good premium and he put a deposit to buy my property,... and meanwhile the market has gone up... thats his share of the cake and I will not deprive him off it. I will go ahead with the transaction and he can then resell and make his profit too.

    I hate greedy people, you will not be rich by being greedy... and if you do, your time will come when you fall right to the bottom.

    I respect people who sell with a reasonable profit knowing they can make more but they settle for less. Also people who follow through till the end of the transaction and not make the buyer's side more difficult.

    I hope things go well for that lady.

    Inv.
     
  3. uaerealdeal

    uaerealdeal New Member

    Hi Investoman,

    I truly second your thoughts, it is actually the intentions and greed of a person due to which all these things happen, if the intentions of a person are clean then no matter even if there is nothing in writing the deal goes through, and in the opposite case if the intentions are wrong then no matter how much air tight/foolproof/ writing you make, the person who has intention of cheating will cheat...

    Even I personally think that, for example I did a deal with you in 1000/sqft and accepted a deposit, then next day even if someone offers me 1200/sqft then I will not change.

    It is during the times of all these temptations a character of a man is tested.

    bye the way... in whichever thread you post... the response rate goes up I must say... (referring to your Camel HUMP Post)...

    Take Care... Keep Up the Good Work...

    Regards,

    UAEREALDEAL
     
  4. Roshan

    Roshan New Member

    Well said. Ultimately, it boils down to how you are brought up. If you kick someone else's stomach, be prepared to get it back somewhere down the line.

    I was talking to a friend who is an agent and he says 99% of the deals take place through MOU's and there are no problems.

    I like your way of thinking. We need all the people to think like this in the secondary market.

    Regards

    Roshan
     
  5. Investoman_uae

    Investoman_uae New Member


    hahahaha you made me laugh, even though the Camel joke was mine. Thanks for your support. Your words have given me more confidence to post hahaha.

    Yeah, its all to do with the intentions, we should settle for whatever is destined for us. Like I said, all these issues goin on, happen not only cos of developer mishandling or lack of professionalism... but also the seller's greed.

    In every property transaction, (especially in this country) ...you are not well protected by the law, why? Because there is no property law.... so therefore, things are left to the buyer and seller to handle with good intentions and a level of professionalism.

    I usually try to get to know the person am doin a transaction with, whether buyer or seller.... (i havnt sold any yet)... in order to establish whether they are worthy of doin business with or not. Simple as that!

    Inv.
     
  6. Investoman_uae

    Investoman_uae New Member

    Yeah MOU's are not legally binding (i believe) but nevertheless, they make you feel good about having something in writing, like a pre-contract. I dont mean to be negative but I wouldnt bother with the courts and law should somethin go wrong... because I feel like it will be a waste of money. One should do as much due diligence and research as possible before gettin involved in a transaction.... and if in the middle of transaction things go pear-shaped, one must try diplomacy.

    I dont know how an MOU will stack up infront of a judge, ... you just have to be careful when doin a property transaction. There is a risk element anyway in every transaction.

    This is why sometimes, I would use a good agent who has an established line of contact with the developer and can speed things up (the paperwork), instead of buyin direct from developer. You got nothing to loose, the developer pays the agent's fees, but you will get your paperwork sorted by the agent pretty quickly and professionally.

    Inv.
     
  7. Roshan

    Roshan New Member

    The MOU does not have any legal binding before the judge. Ah ha..there is nothing called good agents. I know cases where good agents goofed up. I would not like to post it on the forum, but both of them were A1 and they just walked away from the problems.

    Regards

    Roshan
     
  8. stel_g01

    stel_g01 Banned

    Thansk for sharing your experiences.. always good to knwo whats happening out there and what to watch out for
     
  9. jags

    jags New Member

    hi all

    by the way, can anyone tell me if you want to sell your investment after couple of installments who do you approach? i contacted three agents in Dubai and also here in UK.they asked me to send sale and purchase agreement.which i did.after that there is no response at all. not even an acknowledgement.

    also i saw other resales in the same projects as mine. much less than my purchase price. although i have purchased at pre - launch price.how is that possible? and lastly how can i sell my property under the circumstances?


    thanks

    jags
     
  10. euroinvest

    euroinvest New Member

    Roshan, know of any competent Attorneys ? What sort of rates do they charge or would they be percentage based ?
     
  11. Roshan

    Roshan New Member

    I am looking around for one. will let you know. Competent and dedicated attorneys are hard to find. They all charge the earth and when you are in trouble, they dump you. Look out for a real estate attorney who is experienced in deals and not a civil attorney.

    Roshan
     
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