Off-plan properties can be a lucrative investment and have the potential to be your future home. On the other hand, handover delays for such properties are not unusual. It is better if you know how to handle delays in off-plan property.
Off-Plan Property Delay: An Overview
Off-plan properties are under-construction real estate projects. Investing or buying an off-plan property has a potential risk of handover and construction delays. Meanwhile, off-plan projects also offer advantages such as affordable prices and the option to customise.
Various factors, including unexpected construction challenges, financial issues and regulatory approvals can lead to off-plan property delays. These factors influence the timeline and delivery of off-plan properties in the UAE, impacting both buyers and investors.
Ways to Handle Off-Plan Property Delay
Take proactive steps and make better decisions when handling delays in the handover of off-plan property to properly handle demands and protect your investment.
Visit the Construction Site for Hands-On Insight
To handle off-plan property delays in UAE, visit the building site frequently to examine the current scenario. As the completion date approaches, you can also discuss the matter with the developer and contact the Dubai Land Department.
They’ll help you with it, and you can learn more about regulations and project updates. Moreover, make sure to check the physical state of the on-site property to ensure the quality of construction.
Discussing Solutions with the Developer
Have a direct discussion with your developer about possible solutions. For any developer and project, there can be a variety of options; it is important to select the one that best meets your requirements.
Making a Property Delay Claim
If none of your developer’s recommended solutions are practical or suitable for handling off-plan property delays, contact a reputable property lawyer. You can also file a claim with the Dubai First Instance Court.
Monitoring RERA Project Cancellation
Be aware of the relevant legal framework if you believe that the Real Estate Regulatory Agency (RERA) can cancel off-plan property developments.
According to Executive Council Resolution No. 6 of 2010 under Law No. 13 of 2008, projects formally cancelled by RERA fall under the jurisdiction of the Real Estate Cancelled Projects Committees, a branch of the Dubai Courts. These committees are in charge of the rights settlement and liquidation processes.
If your project hasn’t been officially cancelled yet, you should write to the Committee for further details and guidance. Knowing the status of your project is important when handling off-plan property delays in the UAE.
How to Protect Your Investment When Buying Off-Plan Property
When buying an off-plan house, protect your interests and cut down on delays by taking the following preventive measures:
Select a Developer with Flexible Payment Schedules
Choose developers who provide incentive payments according to post-handover payment plans or building milestones. Payment plans for buying property can provide financial flexibility and ensure accountability throughout the project’s lifespan.
Verify RERA Approval and DLD Registration
Make sure that the property has been authorised by the Real Estate Regulatory Agency (RERA) and registered with the Dubai Land Department (DLD). This improves investment protection and ensures compliance with local laws.
Check Oqood Registration
Verify with the developer if the property is registered in the Interim Property Registry via Oqood. Authoritatively registering off-plan properties and sales and purchase agreements helps protect control and secure investors’ interests.
Do a Thorough Investigation
Examine the developer’s reputation and background before committing. Confirm their past performance, speak with other investors and review market projections. The risk of making off-plan real estate investments is decreased when one works with reliable brokers and developers.
FAQs
Incomplete paperwork from the investor’s end and unpaid final bills are common causes of delays in property transfer. To avoid these delays, investors should make the required payments and send all the necessary documentation to the developer beforehand. By being proactive, any setbacks are reduced, and the handover process is simplified.
If the buyer fails to complete the legal requirements before the completion date, the seller can send a completion notice. If the buyer misses the deadline, the seller may cancel or withdraw the agreement and keep the deposit. To avoid this, the buyer must meet all deadlines and fulfil the legal obligations.
Handling off-plan property handover delays requires patience, good communication with the developer and awareness of your rights. Stay informed, get legal advice if necessary, and remember that delays don’t usually impact long-term investment worth. Also, go through this guide to pros and cons of buying a new property.
