Buying Off-Plan Property Dubai? Investors’ Rights & Laws Outlined

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  • 2 weeks ago
  • Buying Property in Dubai, Off Plan Properties, Property Investors,
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Buy Off Plan Property Dubai UAE

Note that the developer shall return any money received by the buyer if a RERA ruling cancels the project.

In Dubai, I intend to purchase an off-plan property. What occurs if the builder is unable to deliver the property? What rights do I have in this situation?

Any off-plan property offered for sale by a developer in Dubai must record in the Interim Real Property Registry kept by the Dubai Land Department (DLD). According to Article 3(1) of the Dubai Interim Real Property Registry Regulations, this is the case.

A master developer or sub-developer may not begin the implementation of a project. Alternatively, the developer can sell its units off-plan until it takes possession of the land on which to build the project. In addition, receives the necessary approvals from the competent entities in the emirate, according to Article 4 (1) of the Dubai Interim Real Property Register Regulations. DLD must notify development on property registry folio in all cases.

When you locate a suitable property, you can check to see if the developer has filed the project. With the DLD based on the aforementioned legal provision. A developer cannot sign a selling agreement with a buyer unless it has received all necessary DLD approvals. According to Article 10 of the Dubai Interim Real Property Registry Regulations, this is the case.

You may ask the developer to fulfill its duties. If it fails to deliver the property you acquired in line with the terms of the Sale Purchase Agreement (SPA). You can go to the DLD and complain if the developer does not comply.

The DLD might make an effort to reach an amicable resolution between you and the developer. This is in accordance with Article 14 of Executive Council Resolution No. 6 of 2010. This provides that the DLD may make conciliatory measures to preserve the contractual connection. Between a developer and a buyer and may make whatever recommendations it deems necessary to accomplish this goal.

Any settlement reached amicably between the developer and the buyer must record in a formal agreement signed by the parties or their designated representatives. That agreement will be enforceable once the DLD has given its approval.

The Real Estate Regulatory Agency of Dubai (Rera) may also cancel a project on technical grounds if a developer does not adhere to the terms. Including failing to start construction work without a valid reason, if the authority is convinced that the developer has no make a plan (good faith) to continue with the project. Failing to implement the project out of sheer negligence, etc. According to Executive Council Resolution No. 6 of 2010, Article 23, this is in conformity.

In addition, if the project is halted by Rera’s judgment, the developer must return any money paid by the buyer. This is in conformity with Dubai’s 2017 Modified Interim Real Property Registration Rules, Article 11(b).

Rera may take whatever required steps to protect your right as a buyer if the developer refuses to refund the cash. According to Article 27 of Executive Council Resolution No. 6 of 2010, “Rera must take all appropriate measures to preserve the rights of purchasers, including sending the case to the competent judicial authorities, if the builder fails to refund the monies owed to the buyers within the time frame set forth in Article 26 (60 days) of this resolution.”

To ask for the termination of the SPA, you as the buyer may also go before the appropriate court in Dubai. This is in line with Executive Council Resolution No. 6 of 2010’s Article 20. However, if the transfer of the property is delayed for reasons beyond the developer’s control (force majeure), such as when authorities seize the property in the public interest or suspend the project for re-planning reasons, the developer may be protected under Article 21 of Executive Council Resolution No. 6 of 2010.

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