أسئلة وأجوبة
The right decision upon handover delay by a developer
Background:
1. SPA was signed in March 2014. Original delivery Date Jan 2017. SPA permits 1yr delay.
2. I have made 35% on account payment. 65% was due on handover.
3. I completed snagging Q3 2019 and de-snagging last week (Post Jan 29, 2020)
4. Received handover letter in Dec last week 2019 to settle 65% by Jan 29, 2020.
4. I have been requesting/discussing since early Jan 2020 to provide me a discount/compensation for a 2-year delay and settle the net payment. Discussions are still in progress with no end date in sight.
My Questions are:
A. How to proceed?
(i) Should I make 65% payment 1st and then seek delay compensation?
(ii) Make on account payment after netting off my expected discount amount?
(iii) Continue to wait for the developer to provide me the discount amount?
(iv) Explore cancellation of the contract and seek a refund of 35% along with interest?
Thanks!
Dear questioner,
In order to answer all your questions, we need to review the SPA.
kindly send us a copy of the SPA in order to assist further.
Kindly contact us via phone for a detailed discussion or write us an email for further assistance.
Dear Questioner,
A. How to proceed
(i) Should I make 65% payment 1st and then seek delay compensation?
Yes, after sending a notice to the company reserving your right to claim compensation for the two years, check the below comments as well.
(ii) Make on account payment after netting off my expected discount amount?
It is not clear but if you did not pay the full amount, you will not get the unit and you will be on breach of contract.
(iii) Continue to wait for the developer to provide me the discount amount?
If the compensation is big (depending on unit size and paid amount), then pay first and go to court, if it is small, then try to get discount first.
(iv) Explore cancellation of the contract and seek a refund of 35% along with interest?
The developer will not give a discount unless you have a court order. Depending on the unit value and the expected compensation, you can pay first and file later or hold the payment to get a discount now.
We can provide you legal assessment (legal advice) based on the court precedence and expect compensation in light of court fees and lawyer fees to enable you to take the right decision and we can also draft the notice reserving the right for compensation.
Best Regards,
Mohamed Noureldin
Legal Consultant
