Amlak Finance, a Dubai-based Islamic mortgage company, has confirmed it has taken legal action against some investors who'd refused to take possession of their apartments and had breached their contractual obligation, Emirates 24|7 can reveal.
"Amlak Finance has and continues to exert all goodwill measures and case by case incentives to ensure the smooth conduct of our customers' financing obligations," the company said in an emailed statement.
"Unfortunately, legal action was taken against very few customers who have refused to take possession of their properties, in breach of their contractual obligations, and whose cheques have bounced due to insufficient funds, even though we have worked diligently and patiently with such customers to manage their cases to the best of our ability," it added.
The company's response came after a few investors claimed the mortgage company had presented their cheques since they had refused to take handover of their units.
An investor, who has been financed by Amlak in Skycourts project, said on conditions of anonymity: "I had met Amlak officials and had given them the reasons why I was not eager to take handover of my unit. I had told them I would not be paying any money to them.
"The company presented my cheque, which bounced due to insufficient funds. The following day, I received a call from the police, who asked me to come with my passport to the police station. I was left with no other option, but to pay and take possession of my unit."
Last month, this website reported Amlak had informed its Skycourts clients that it is exploring legal options against defaulters and did not rule out presenting security cheques of buyers refusing unit handovers.
"In the event of your failure to fulfil the above requirement, Amlak Finance shall exercise its rights under the relevant finance document and shall also be entitled to explore all available legal options, including but not limited to damages suffered by Amlak as a consequence of the breach and presentation of your security cheque/s, which may result in adverse legal consequences for you," the company said in a final reminder sent to an investor on April 17.