Ask the law: Developer refuses to return my deposit

Ask the law: Developer refuses to return my deposit

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Question:

A questioner asks: A month ago, I paid a deposit to one of the real estate developers to buy a property in Dubai. For reasons beyond my control, I asked the developer to return the deposit amount since I did not want to buy, but the developer refused to return the deposit on the grounds that the deposit is not refundable in law.

My question is, do I have the legal right in this case, and according to Dubai real estate law, to request a refund of the deposit, and what are the legal procedures that I must follow to return the deposit amount if the law allows me? Please advise.

Answer:

I would advise the questioner the following:

Article 148 of the Civil Transaction Law states that "(1-In the absence of a clause to the contrary in the contract, the payment of earnest money is evidence that the contract has become final and may not be relinquished.

2-Where the parties agree that the earnest money paid is the sanction for withdrawal from the contract, either party may withdraw. If the payer of the earnest money is the one who withdraws, he shall lose