Delayed handover of an off-plan property (new build project) is a situation no buyer wants to be in. Although most property developers of off-plan properties claim that the Building project to be completed within the specified time frame, there are often unexpected delays during the handover. It can happen that all the documents for your property are signed and sealed, but are not handed over to you on time. Therefore, you need to learn how to manage such situations to avoid further delays.
Delayed handover of an off-plan property is a real thing, and you need to learn how to deal with this situation if it does occur. Today, we'll look at how you can deal with a delayed handover of an off-plan property by following the steps outlined.
Steps for dealing with a delayed handover of an off-plan property
Check whether the corresponding fees and/or papers are still outstanding.
The first and most important step is to make sure that you have paid all the fees for your off-plan property. You also need to make sure that all the paperwork has been finalised. In most cases, the main reason for delaying the handover of an off-plan property is an outstanding payment or paperwork that you may have missed by the handover date.
Visit the construction site and check the project status
Check the status of the project. To do this, you need to visit the project site to check the physical condition and meet with the project developer if you can. Talk to the property developer and enquire about the actual date of completion of the project. In addition, you can also visit the Dubai Land Department (DLD) website to find out the status of work and the expected completion date for all registered off-plan properties in Dubai.
Find a solution with the property developer
One of the steps in dealing with the delayed handover of an off-plan property is to talk to the project developer.
Talk to your project developer and find out what can be beneficial for both parties. The solutions available differ depending on the project and developer. Choose the one that suits you best.
You must also check the contract document or the purchase agreement (SPA). Both usually contain a clause that regulates what happens in the event of late handover of an off-plan property. Most of the contracts signed in Dubai contain a separate clause on this topic. So make sure you are aware of the clause before negotiating with the property developer.
Check if the project has been cancelled by RERA Dubai
The Real Estate Regulation Authority (RERA) Dubai has the right to cancel any off-plan project if there is a specific reason as per their rules. Therefore, the delayed handover of the property could be due to a possible cancellation by RERA Dubai. Also, check out the RERA rules for delayed projects. The project could have been cancelled due to many reasons, including its planning or re-planning.
You can check the Dubai Land Department (DLD) website to see if any of the off-plan projects have been cancelled by the RERA and enquire about the "Project Status". If the project has been cancelled, it will be handed over to the Liquidation Committee. Thereafter, the Dubai Real Estate Court will deal with the issues of liquidation and settlement of buyers' rights in case of delayed off-plan property transfer.
Seek legal advice and file a lawsuit
According to the purchase agreement, the project developer is generally entitled to a grace period of one year from the date of handover. After this period has expired, you can take legal action.
You need to contact the Dubai Real Estate Court to hire a property lawyer to deal with the delayed handover of property outside the development.
If you file a claim, you can claim compensation for the delay in accordance with the terms and clauses in your contract. You can claim the deposit and interest you paid to the property developer. Also other additional costs that you have paid.
You can demand that the contract with the property developer be cancelled under the conditions specified in the contract and that you be compensated for the amount paid.
Filing a lawsuit and seeking legal counsel should be the last option if you are faced with a delayed transfer of an off-plan property.
How to avoid problems with the late handover of an off-plan property in advance
None of us want to accept unwanted and unpredictable delays in the handover of off-plan properties in Dubai. They not only hamper our activities but also affect our peace of mind. Therefore, investors and buyers should take some measures to reduce the chances of delays. Let's look at some of the important measures in detail.
Check the property developers of off-plan projects
For a successful off-plan property investment in Dubai, it is necessary that you first find out about the off-plan property developers and the project. A good approach would be to find out how quickly the developer has completed previous off-plan projects (if any) and handed them over within the announced deadline. Visit the site and speak to other investors about the property you are interested in to find out relevant details. Remember that you should buy your off-plan property from a trusted property developer.
Escrow account registered with DLD
Make sure that the property developer has an escrow account. The existence of an escrow account is a requirement under Act (8) of 2007. This Act states that all property developers selling off-plan properties must have an escrow account registered with the DLD. Investors must pay all payments into the relevant escrow account.
One way to make sure that the property developer has an escrow account is to visit the DLD website and search for their project. If the project appears on the website, you can be sure that there is an escrow account registered with DLD.
Project registered with RERA
Issues with delays in the handover of off-plan properties can be proactively managed if you ensure that the project is registered with the RERA
Be sure to check whether the project you want to invest in and its developer are registered with the Real Estate Regulation Authority (RERA) Dubai. You can also visit the DLD website to see if both are registered with the RERA.
Property developer has the relevant licences
Again, make sure that your developer has all the relevant DLD approvals and licences before they start marketing and selling the off-plan property.
Feasibility of the payment
Some property developers offer payment incentives against milestones during construction or payments after handover. It is advisable to choose among them for your investment.
Read the contract carefully before signing it
The most important thing is to read the contract before you sign it. Go through the clauses of the purchase agreement and see if there are any specific provisions that could help with a delayed transfer of off-plan property.
It is advisable to draw up a checklist before buying an off-plan property in Dubai.
What are the advantages of buying an off-plan property?
Buying an off-plan property offers many benefits, such as lower preparation costs, lower purchase prices, a brand new property and the ability to sell the property before it is completed. In addition, there are many factors you should consider when investing in an off-plan property.
We hope that the above information will help you to manage and resolve cases of delays in the transfer of off-plan properties in Dubai. If you are able to take steps to protect your investment, it is highly unlikely that you will face this problem. And even if you do, you now know what you can do. You can also create a checklist for the handover of off-plan properties before you invest and discuss it with the developer.
There are many off-plan properties for sale in the Emirates, but if you are looking for a property for your personal residence, you can opt for a Flat in Dubai or a Villa decide. If you are looking for an investment opportunity, you can buy a ready-made property and rent it out. Don't worry about the risks. There are several ways to minimise the risk of a property investment in Dubai. Be sure to consider them.
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