Handover Delays: What Buyers Can Do Legally in dubai?

 

Whether residents or expatriates of Dubai, the city's real estate market is already booming and is being significantly invested in by hundreds of thousands of buyers. Although everything appears nice, there are some issues even in Dubai's real estate market, where handover delays are one of the significant troubles faced by buyers. However, regarding the handover delays, the government of the UAE has implemented some legal measures. Through the provided vade mecum, you can understand the significant reasons for handover delays in property and the legal measures you can adopt in the event of contract breach. 

 

Why Do Buyers in Dubai Face Handover Delays?

 

There are various reasons why buyers generally face handover delays of properties in Dubai, where some of the significant ones can be seen as follows:
 

• Developers faced financial or construction issues during the building of the property.
   
• There is a delay in the approval of the building by the regulatory officers.
   
• The project has been cancelled.
   
• There is a downturn in the market.
   
• Mismanagement in the construction process.
   
• Global crises or natural disasters take place

Legal Measures for Buyers In Case of Handover Delays

Various measures are provided to you by the government of the UAE in case of a breach of the property agreement by the property dealers who are provided to the buyers of property. Some of the prominent steps that you can legally take in the case of the handover delays of the properties can be seen as follows:
 

• Evaluate the sales and purchase agreement (SPA) - The SPA is a crucial segment of your property agreement, outlining the developer's obligations, including potential handover delays and penalties. Hence, you must carefully evaluate the clauses to ensure that the legal measures adopted by the government can assist you during handover delays.
   
• Complaint a file in the Real Estate Regulatory Authority (RERA)- To ensure that the developer follows its compliance regarding the handover of the property, you can file your complaint with the RERA, which will take corrective measures or mediate during the disputes.
   
• Claim compensation for the delay - You may face financial losses, such as paying rent, due to a delay in property handover. Thus, you are legally obligated to obtain compensation from the developers as per the laws of the UAE.
   
• Approach to the Dubai Land Department (DLD) - The DLD is responsible for registering properties in Dubai. Hence, you can approach the authority, which can intervene in severe cases where developers are unwilling or fail to deliver the property to the buyer.
   
• Make a Litigation - If negotiations between the buyer and the developer regarding the property's handover are not made, the UAE government provides buyers with the option to take the matter to court and initiate litigation as per the SPA. Based on the specific conditions, the court can order the developers to refund, compensate, or enforce the contract.

Things To Consider While Buying Properties in Dubai To Avoid Handover Delays
 

Though sometimes the handover delays are unavoidable, there are certain things that you should consider while buying a property in Dubai that will help you to avoid handover delays, which can be seen as follows:
 

• Research the developer's background and consider purchasing a property with a developer who has a proven track record and a history of completing projects on time.
   
• Evaluate each sphere of the SPA while buying the property in Dubai, which will help you ensure that the law of the UAE protects you in case of its breach.
   
• Monitor the project's development regularly and stay updated on any potential delays in the handover.
   
• Make your payments in the escrow account of the developer as mandated by the RERA. This will help ensure that the funds are released in stages and that some of your funds are protected in the event of the project's failure.
   
• Ensure that the property you are going to buy in Dubai has already passed the RERA inspection.

Conclusion

Buying a property, whether in Dubai or anywhere else in the world, is a challenging task. However, you can minimize or limit the problems you face when buying a property by being fully prepared for them. Thus, the provided article is designed to help you take the first step in reducing the risks of buying a property in Dubai and understand what you can do when you face handover delays.