Developer claims returns are sufficient only to cover service, maintenance charges
Question: I purchased a property in Dubai directly from the developer five years ago. At the same time, I signed a rental contract for the property with him. As per the agreement, he would rent the property following which 70 per cent of the rent would come to me and 30 per cent would go to him. Now, more than three years have passed, and I have not received any amount from him.
Reason: He claims that the income only covers service and maintenance expenses. In fact, he is now asking me to bear these costs. I asked the developer to cancel the rental contract and return the property to me so I rent it out on my own. He has refused saying the lease is valid for 10 years. What is the legal recourse for me?
Answer: The contract, as per Article 246 of the Civil Transaction Law, shall be implemented, according to the provisions contained therein and in a manner consistent with the requirements of good faith.
No one is entitled to enrich himself to the detriment of another person, without just cause. If he does so, he is liable to restitute it, and the hand that has taken is liable until it gives it back. Also, in bilateral contracts, and according to Article 272 of the Civil Transaction Law, if one of the parties does not perform the contractual obligations, the other party may, after serving a formal notification to the debtor, demand the implementation of the contract or its termination.
Based on the above, you have to file a civil case against him to request for the rental amounts and the cancellation of the contract. You have to request to transfer the matter to an expert to check and calculate the rental amounts accumulated over the years.
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