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A reader from Dubai asks: I gave a deposit to a real estate company as a reservation fee for a flat. They failed to deliver on the promised date of October 1. Since the flat was only available on the 6th, I took another flat on October 1 with another real estate company as I was in a hurry. When I went to collect my reservation fee it refused to refund it stating that it was company policy. Is it legal for them not to give back my refund since they did not deliver on the promised date?
Legally the real estate company has no right to refuse refunding a reservation fee especially if the company has failed to fulfil the agreement and deliver the flat on the promised date. Consequently the company's claim that it cannot refund the reservation fee due to its policy is not acceptable legally by any means. I advise the questioner to file a complaint against the real estate company with the police to claim back his right. He should also file a complaint with the Economic Development Department as the company might not be licensed to practice leasing and renting activities. If so, it will definitely enhance the questioner's situation and facilitate the process of recovering his rights.
Questions answered by Advocate Mohammad Ebrahim Al Shaiba of Al Bahr Advocates and Legal Consultants.
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