Questions & Answers
Filing a case when the handover of an apartment is not expected to be on time
Hello,
I purchased an off-plan apartment in Aug 2017 from a developer in Dubai. The payment plan is 50% prior to handover, 50% on handover.
The property has been registered with Oqood, 30% have been paid to date as per installment schedule. The anticipated handover date was supposed to be October 2019. The developer extended the handover date till October 2020 as per the 12-month buffer they have under contract.
They have claimed that the delay is due to their subcontractor going bust, so they have had to kick them out and replace them with a new one. As of Jan 2020, work has not started again on the project.
My questions are:
1- Given the progress rate to date (30%), it is unlikely that they will be able to complete it on time. Can I take them to court now for an expected breach of contract?
2- Can they claim that their initial subcontractor going bust is a Force Majeure?
Noting that they have never officially communicated this information to their customers (this was only mentioned verbally during a call).
Dear questioner,
We need to check first the SPA to see what are the clauses between the parties.
You need to decide either to continue the contract, ask for a compensation or deduction or to terminate it - but again - it depends on the SPA terms.
In case you are in the UAE, I suggest meeting and discuss the case with us.
Please feel free to approach me via email.
Best Regards,
Raluca Gatina
Hi,
I trust that you are well.
In order to determine whether the developer has, in fact, breached the agreement, the terms of the contract need to be reviewed.
Upon reviewing the contract, we will be in a better position to understand whether or not we can implement your rights as per UAE Law through a Legal Notice.
For further information, please contact us via phone or email.
Generally, financial crises are not Force Majeure. With regards to filing a case, it ultimately depends on what you’re claiming and the terms of your Sales and Purchase Agreement.
I cover this topic in my legal podcast, LAWGICAL WITH LYLAW. Here is a link to all the episodes, which you can search and categorize by topic.
Should you require further tailored substantive legal advice, kindly contact my firm via phone or email.
Regards,
Ludmila
