Payments – schedule and in favour of whom?
a) What are payment schedules and on-going installments? What is the currency of payment?
There are 4 payment installments methods – Payment Schedules (A, B, C, D) and there is a discount applicable for paying more upfront i.e. Payment Schedule A: Reservation Fee = 10% plus further installments Payment Schedule B: Reservation Fee = 30% plus further installments Payment Schedule C: Reservation Fee = 50% plus further installments Payment Schedule D: 100% paid on reservation. All payments to the building owner must be made in AED (UAE Dirhams). 1 USD = 3.68 AED (fixed rate). The AED fluctuates against the GBP. As on the date of this report the AED 5.56 = 1 GBP.
b) What form of payment is accepted?
Wire Transfer / Bankers Draft / Money Order / Credit Card (at a later date)
c) Does the building owner issue a receipt for every payment paid?
d) Does the building owner send a statement of account to the property purchaser every month?
No, a receipt is sent only when an installment is received.
e) Is there a penalty for late payments?
Yes, if the property purchaser delays a payment, he is charged late payment interest at the rate of LIBOR + 4% (LIBOR is defined as Emirates Interbank Offer Rate which can be looked up in the Financial Times). If the property purchaser delays the payment of 3 installments, the seller reserves the right to cancel the sale and up to 30% of the unit’s value may be forfeited.
f) Who should the payments be made to?
If the property purchaser purchases the unit without financing, then the payment is made in AED via bankers draft or telex transfer to the building owner and NOT to its agents unless specifically authorized in writing by the building owner.