What about bank financed end - users?

[BHARATNANKANI]

I have invested in a 2 bedroom apartment at city of arabia last year and had my purchase financed thru a bank. My purpose for purchase was only for end use.

The bank has been paying the instalments as and when they are due. Recently the developer even sent a letter to the bank informing them of a new payment plan due to a delay in the construction.

My point is that the construction is going on at a snails pace. Even though the developers are not claiming any further payments at the moment, the 30 to 35% payments which have already been made by the bank on my behalf are costing ma a lot of money in terms of interest on the amount paid.

The way things are going on, they probably need another 24 to 30 months to handover.

I am confused ? Is there any legal rule which helps me in claiming compensation from the developer for all the interest that I am paying on the money paid to him by the bank, and which he is using to construct at a painfully slow speed?

Any advice friends?

rgds

BN

 

[TommyC]

According to RERA, the developer will have to pay interest for the period exceeding 6 months after the initial planned handover until the unit is actually is handed over.

But remember, this is Dubai....only words, no enforcing. So best of luck trying to get the developer to do that, and wish you even more luck when you start the endless queuing and running in and out of RERA to get anyone to do anything.

 

[DXB_Lawyer]

Do you have an executed property purchase agreement ("PPA") regarding the apartment? Assuming that there are no provisions in there dealing with such an eventuality (and I'm guessing there aren't on the basis that these things are drafted so as to be very biased against the Purchaser i.e. you),then you will need to rely upon remedies offered to you under the relevant Dubai property laws and RERA. You may be entitled to interest.

What's the handover date as per your PPA?