What happens to the tenants if the owner of your apartment (prepaid 12 months rent) defaults on the mortagage? | ExpatWoman.com
 

What happens to the tenants if the owner of your apartment (prepaid 12 months rent) defaults on the mortagage?

7
Posts
EW NEWBIE
Latest post on 15 February 2011 - 12:49

What happens if the owner of the villa / apartment that you rent default on their mortgage - chances are you will have paid at least 3 months upfront, maybe 12, and where would the tenant stand?

11
Posts
EW NEWBIE
Latest post on 15 February 2011 - 14:00
This happened to us recently. Our LL had just cashed our rent cheque (for the whole 12 months) and we got a visit from the bank looking for him. They told us he hadn't been paying his mortgage on either of his properties and wasn't answering his phone etc. The bank wasn't aware that he had tenants either. We were very worried but the bank assured us that repossession (foreclosure) is much further along the line and that in these cases they always honour the rental contract. We weren't convinced but that was in August and we're still here. The bank sent round a valuer in December and she told us that in her experience we would be fine with the bank owning the house and honouring the rental contract. (She was from an independent company) I'm sure people will tell you horror stories about being evicted but so far things have been okay for us - fingers crossed it stays that way!
10
Posts
EW NEWBIE
Latest post on 15 February 2011 - 13:11
Real Estate Regulatory Agency www.rera.gov.ae/rera/english/questions.aspx Best to go to the RERA website which will have the latest updates on the current laws... whatever they may be this week :) Have copied the website for you above.
 
 

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