One such situation that no buyer wants to be in is delayed handover of off-plan property. Whilst most off-plan property developers claim to finish the project within the time frame specified, unforeseen delays in handover are common. It is possible that all of your property’s documentation will be signed and sealed but will not be delivered to you on time. This is why, in order to avoid future delays, you must understand how to deal with such situations.
Delayed handover of off-plan property is a real thing, and you must understand how to deal with it if it occurs. Today, we’ll look at how to handle a delayed off-plan property handover by following the procedures outlined.
ACTIONS TO TAKE IN THE EVENT OF A DELAYED HANDOVER OF AN OFF-PLAN PROPERTY
VERIFY THAT THE RELEVANT FEE AND/OR PAPERWORK ARE NOT PENDING
The first and most important step is to ensure that you have paid all of your off-plan property dues. You should also double-check that all documentation is in order. The most common cause for an off-plan property handover delay is a pending payment or documentation that you may have overlooked before the handover date.
CHECK THE PROJECT STATUS ON THE WEBSITE
Examine the project’s status. You must visit the project site to inspect the physical condition and, if possible, meet with the project developer. Inquire with the off-plan property developer about the project’s completion timeline. Also, you may visit the Dubai Land Department (DLD) website to learn about the progress status and expected completion date of all registered off-plan properties in Dubai.
WORK WITH THE DEVELOPER TO FIND A SOLUTION
The best method to fix an issue is to have a conversation and come up with a feasible solution. Talk with your project developer to explore what may be done to benefit both sides. Each projects and their creators have different options available; select the one that is best for you.
You should also review the contract or the Sales and Purchase Agreement (SPA). The two normally contain a provision that outlines what happens if the transfer of off-plan property is delayed. Most contracts signed in Dubai have a separate provision addressing this problem, so make sure you understand what it says before negotiating with off-plan property developers.
VERIFY IF THE PROJECT HAS BEEN CANCELLED BY RERA DUBAI.
According to its stated laws, the Real Estate Regulatory Authority (RERA) of Dubai has the authority to revoke any off-plan project. As a result, the delayed off-plan property handover might be owing to RERA Dubai’s likely cancellation. Check out the RERA guidelines for delayed projects as well. The project might have been canceled for a variety of reasons, including poor planning or re-planning.
On the Dubai Land Department (DLD) website, you may query about the “Project Status” to see if any off-plan property developments have been terminated by RERA. If a project is canceled, it will be sent to the liquidation committee. Following that, the Dubai Real Estate Court will address the issues of liquidation and settlement of rights to purchasers in the instance of delayed off-plan property handover.
SEEK LEGAL ADVICE AND FILE A CASE
If you are unable to reach an agreement through talks, you may bring a claim against the developer for compensation or terminate the contract. But, before obtaining legal counsel, you should be aware of the following points:
- According to the Sales and Purchase Agreement (SPA), project developers are often given a one-year grace period from the date of handover. When the grace period expires, you may file a lawsuit.
- To handle a delayed off-plan home handover, you must approach the Dubai Real Estate Court and employ a property lawyer.
- By filing a claim, you can seek compensation for delays in accordance with the terms and conditions of your contract. You are entitled to a refund of the deposit and interest you paid to the off-plan property developer. Additionally included are any additional fees you have paid.
- Under the criteria indicated in the contract, you may request termination of the contract with the developer and be compensated for the amount paid.
When dealing with a delayed handover of off-plan property, filing a complaint and obtaining legal aid should be your final resort.
HOW TO PREVENT OFF-PLAN PROPERTY HANDOVER DELAYS AHEAD OF TIME
Nobody wants to endure unexpected and unforeseeable delays in off-plan property handover in Dubai. It not only impedes our activities, but it also has an impact on our mental health. As a result, investors and purchasers should take a few precautions to reduce the possibility of delays. Let’s take a closer look at some of the more crucial ones.
OFF-PLAN PROJECT DEVELOPERS CROSS-CHECK
To make a profitable off-plan property investment in Dubai, you must first investigate the off-plan property developers and the project. A smart approach would be to find out how quickly the developer finished previous off-plan projects (if any) and turned them over within the timeframe specified. To obtain important information, visit the site and speak with other investors about the off-plan property you are interested in. Note that you should buy off-plan property from a reputable developer.
DLD ESCROW ACCOUNT REGISTERED
Check to see if the real estate developer has an Escrow account. According to Law (8) of 2007, having an Escrow account is required. This rule requires all real estate developers selling off-plan properties to establish an Escrow account with DLD. All payments must be deposited in the appropriate Escrow account by the investors.
Visit DLD’s website and check for their project to confirm that the off-plan property developers have an Escrow account. If it displays on the website, it means they have an Escrow account set up with DLD.
RERA REGISTERED PROJECT
It is important to confirm that the off-plan project in Dubai in which you are investing and its developer are registered with the Dubai Real Estate Regulatory Authority (RERA). You may also check the DLD website to determine if both are RERA-registered.
THE DEVELOPER HAS IMPORTANT PERMITS
Again, be certain that your project developer has obtained all necessary permissions and approvals from DLD before proceeding with the advertising and sale of the off-plan property.
PAYMENT AVAILABILITY
Some developers provide monetary incentives in exchange for construction milestones or post-handover payments. It is advised that you select one of them for your investment.
BEFORE SIGNING, READ THE CONTRACT CAREFULLY.
Finally, the most important thing to remember is to read your contract before signing it. Examine the clause part of the SPA to see if there are any clauses that might help with delayed handover of off-plan property.
Making a checklist before buying an off-plan property in Dubai may be a good idea.
FREQUENTLY ASKED QUESTIONS
WHAT EXACTLY IS THE DUBAI LAND DEPARTMENT (DLD)?
Dubai Land Department (DLD), established in 1960, is a government department in charge of supervising the city’s real estate transactions. It works on behalf of the Dubai Government; for more information, read the complete guide on Dubai Land Department (DLD).
WHAT ARE THE BENEFITS OF PURCHASING AN OFF-PLAN PROPERTY?
There are several benefits to buying an off-plan property, including cheaper upfront expenditures, the lowest purchase price point, brand-new property, and the ability to sell it before completion. Furthermore, there are other reasons why you should invest in an off-plan property.
With the information provided above, we hope you will be able to address and resolve issues of delayed off-plan property handovers in Dubai. It is quite improbable that you will have to experience the trauma if you take precautions to protect your investment. Even if you do, you now know what to do. You may also compile an off-plan home handover checklist before investing and validate it with the developer.
