Questions & Answers
Claiming refund and compensation from a developer
I purchased an apartment in August 2007 which was due for handover on October 31, 2009. The purchase price was AED 1.42 million.
The payment term was 50% in 7 instalments and 50% on project completion. I paid 50% as per the agreement, The developer informed me sometime in 2008 that the project was delayed due to force majeure as the substation in Business Bay was not complete.
Now it is 2020 and the project is still not completed. The substation in Business Bay had been completed years ago.
I would like to know if I am entitled to compensation for the delay or can I cancel the purchase in its entirety and get my money back along with interest?
Please advise me on my options and what steps should I take forward.
Dear questioner,
The project has been delayed for more than 10 years. it is pretty clear that the developer has defaulted on his duties beyond the allowed period.
Therefore you can definitely cancel the contract and claim refund of your entire invested amount. Further compensation will be decided by the court.
Kindly send us a copy of the signed SPA so that we can assist further.
Kindly contact us via phone for a detailed discussion or write us an email for further assistance.
Hi,
Based on the information provided, it is evident that the developer is in breach of its contractual obligations.
In order to further determine your legal standing, we will need to review the contract and advise you accordingly regarding the next steps.
For further information, kindly contact us.
Hello,
Generally speaking, the law permits developers to delay handover for one year. However, as it is clear from your case, it has been much longer than one year.
Determining how you can proceed moving forward ultimately depends on the terms of your sales and purchase agreement.
Should you require further tailored substantive legal advice, kindly contact my firm via phone or email.
Regards,
Ludmila
I will need to see your documents and the terms and conditions of the purchase.
We recommend you the first choice, which is compensation.
We also recommend that you pay the instalments on the dates specified in the contract in order to avoid violating the law, and accordingly, your right to compensation will be forfeited.
Kindly contact us for more details.
