Are you facing a delay in the handover of your property? While most developers ensure that the construction progresses according to plan, sometimes there can be unexpected delays in handovers. However, there are certain steps that buyers can take when dealing with handover delays in Dubai.
What should you do when dealing with property handover delays in Dubai?
Keep reading to learn more about what you can do when there is a delay in handover of your off-plan property in Dubai.
Make sure you have made the necessary payments
When dealing with handover delays in Dubai, the first step is to ensure that there are no payments or paperwork due from your side. Ensure that you have paid all the necessary fees that are due by the handover date of the project, and provide all the relevant documents.
Visit the project site
You can also visit the project site to see the physical status of the property and speak to the developer about the estimated completion date. You can also check the project status on the Dubai Land Department’s (DLD) website, which provides details of the current progress and completion date of all registered off-plan projects in Dubai.
Check if RERA has cancelled the project
Another reason for handover delays in Dubai could be because the Real Estate Regulatory Authority (RERA) has cancelled the project. This could be due to several reasons such as if the land is affected by planning or re-planning projects.
If this happens, the project will be transferred to the liquidation committee and then to the Dubai Real Estate Court, who will handle the settlement of rights and liquidation to purchasers, in these cases.
You can find out if a real estate project has been cancelled by RERA on DLD’s website, by checking its ‘Project Status’.
Negotiate with the developer
In the event that the real estate project is not cancelled, the best course of action would be to negotiate with the developer and reach an amicable solution that is favourable for both parties.
Another crucial step when facing handover delays in Dubai is to check your contract or Sale and Purchase Agreement (SPA). Your contract will typically have a clause that mentions what should happen if the developer is not able to meet the handover dates.
This will not only help you in your negotiations with the developer but will also help determine the legal route to pursue if you wish to do so.
File a case against the developer
Should you fail to reach an amicable solution with the developer, you can choose to file a claim for compensation or seek termination of the contract.
However, before you do so, bear in mind that the developer is allowed a grace period of one year from the handover date that is mentioned in the Sale and Purchase Agreement. Following this grace period, you can pursue legal action against the developer.
It’s best to seek the assistance of a good property lawyer, and file a case at the Dubai Real Estate Court, which handles property disputes such as this. You can seek compensation for the delay in handover, although this will depend on the clauses and conditions in your contract. You may be able to claim compensation for the interest, deposit or any additional amount that you have paid.
Alternatively, depending on your contract conditions, you can choose to seek termination of your contract with the developer on certain grounds and claim a recovery of the paid amount.
However, it’s best to keep legal methods as a last resort and attempt to first negotiate with the developer itself.
How can you safeguard yourself from delayed property handovers?
There are several steps that investors and buyers can take to limit the chances of delayed property project handover in Dubai:
- Research the developer: If you are planning to purchase off-plan property in Dubai, make sure to do your research beforehand. Learn more about the developer’s track record for completing projects and handovers as per schedule. It’s also a good idea to speak with other investors and visit the project site to get more information. Finally, make sure to only purchase off-plan property from reputed and reliable developers.
- Make sure the project is registered with RERA: Before you invest in off-plan projects in Dubai, ensure that the project and developer are registered with RERA. You can find out if a real estate project has been registered with the proper authorities on DLD’s website.
- Find out the Escrow account details: As per Law (8) of 2007, all real estate developers are required to have an escrow account that is registered with DLD, in order to sell off-plan units. All the payments made to the developer by investors must be deposited in the registered escrow account. You can also make sure that the developer has an escrow account by visiting DLD’s website and searching for the project.
- Ensure that the developer has all the relevant permits: All developers must have the necessary permits and approvals from DLD to promote and sell off-plan properties.
- Check your contract for the necessary clauses prior to signing: As we’ve emphasised earlier, the clauses in your Sale and Purchase Agreement are crucial in protecting your interests and rights in such circumstances. Before you sign the contract, make sure to read it carefully to ensure there are necessary provisions in place, should there be a delayed handover of property.
That concludes our guide to dealing with handover delays in Dubai. And as you can see, if you take the necessary precautions beforehand, you can significantly limit the chances of a delayed property handover!
Wondering whether you should purchase off-plan property in Dubai? Find out all the benefits of investing in off-plan projects in the UAE!
Stay tuned to MyBayut to keep yourself updated on the latest off-plan projects in the UAE.