A Dubai-based Islamic mortgage lender has taken legal action against investors who it feels have breached their contractual obligations.
Amlak Finance is unhappy that a number of its clients have refused to take possession of their apartments, Emirates 24/7 reported.
Dubai's property market has taken a heavy hit after the financial downturn and is only now starting to show signs of recovery.
Some Islamic mortgage providers even stopped lending for almost two years, but are now beginning to open their chequebooks again.
"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," Amlak is reported as saying.
One investor claimed that the Islamic mortgage provider had attempted to cash his cheque after he said he would not be paying any money, having given his reasons for his refusal to take handover of the property .
The following day, the investor received a phone call from the police and was then forced to proceed with the deal.
Islamic mortgage firm takes action against investors
Fri, 24 Jun 2011
