I bought an office space at AED 600 per squre foot. in Eye tower, which was due for completein in December 2010, with a grace period of maximum 6 months . ( June 2011)
I have already paid, AED 106,000 which comes to 22.5% since February 2008
I reuglarly have been visiting the site over the last two years. No construction was started until two months ago and that too is with very minimal labor. More like a show off to satify the ARRA and grab more money from us.
I never received any wrtitten communication from them since November 2008, when I visited their office to pay my checks.
They have recently started the construction and now claim to have completed 9.33% and want the payment to reach 29.33% ( 20% + on the completion).
They have also sent a letter from ARRA authorising them to cancel our contract and if no payment is made within 20 days than they have the right to cancel the unit and consider the prevuiously paid amount as liquidated damages.
Can some one explain:
1.Can the developer now unilaterally decide to eat our money at their own discretion.
2. what is a liquidated damage and when can this be applied by the developr.
3. What can I do to avoid/ minimise my losses, since my balance payments (AED 361,600) due far exceed the current markt value (AED 169,000 = 768 sq ft X AED 220 /sq ft.).
4. Can I enforce the repayment of my amount since they failed to perform their part of the contract,