Homefront: ‘Can I move into my property after paying 25% down payment?’

Real estate brokerage insists that the Dubai resident must follow contractual terms and move in only after paying 50%

The Dubai-based property owner is being denied permission to live in her apartment without paying 50 per cent of the purchase price. She has already made a down payment of 25 per cent for the propertyShow more

I am in a desperate situation. I have lost my job and the tenancy contract for my house has also ended. I own an apartment in a project in Dubai, and have made a down payment of 25 per cent of the unit’s price.

The project was due to be handed over on April 1, 2019. At that time, I could have easily taken a mortgage. However, completion was delayed by a year and the project was ready on April 1, 2020. But with the onset of the pandemic, the situation has changed and banks are stricter about offering mortgages.

As per the contractual terms, the owner can move in to the unit after paying 50 per cent of the property price, while the remaining 25 per cent can be paid after moving in.

I asked the real estate agency to allow me to stay in my apartment because I have already paid 25 per cent of the purchase price.

I have heard of cases where other brokerages allow owners to move in to their property after paying only 10 per cent as down payment and the remaining amount over the next five years. I can afford to pay Dh50,000 in the first year and the remaining amount over the next four to five years.

My apartment has been vacant since April 2020. The brokerage is also incurring a loss because no one is willing to rent such an expensive unit in a remote area of Dubai. If the agency allowed me to move into my apartment, it could benefit by “renting out” the property to me.

But the agency insists on adhering to the terms of the contract, which are not feasible in the midst of a pandemic. LZ, Dubai

I sympathise with your situation and can only recommend that you try to do the following steps.

You mention the agency, so I assume this is the brokerage you did the deal with in the first place. I would not recommend you to pursue any more meaningful conversations with the brokerage. The agency will only abide by the contract and not offer any relevant advice.

If you have paid 25 per cent of the purchase price, I also assume you have signed a sales and purchase agreement with the developer and, as such, I’m sure you can get hold of somebody in authority at the developer’s office who might be able to agree a mutual understanding.

Make a face-to-face appointment, which will allow you to explain your position in a much better light. Try to offer solutions rather than just talk about your problem.

You are correct in saying that there are indeed developers who allow buyers to move in after paying just 10 per cent, with the remaining to be paid post-handover. But I stress this is at the discretion of the developer, which is why you should try to get hold of a senior manager there.

There really is no quick fix to your issue given the current economic problems faced by everyone. However, a solution will be found if both parties work together. The key, as mentioned, is to speak to the most senior person possible.

Talking to the company owner would do the trick, but the difficulty is to get to him. I believe him to be a reasonable man, so if you are able to discuss this at that level, I’m sure you would come to a solution.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [e-mail]