Questions & Answers
Delaying handover of an off-plan unit and seeking compensation
I would like to seek your understanding of this clause in my SPA.
I have an off-plan unit and the last completion date (when signed) was 29 Feb 2019. However, they informed that the new completion date will be April 2020. In March 2020, they informed me the handover is delayed till Nov 2020.
''The vendor shall prior to the Estimated completion date notify the purchaser of the designated completion date of the unit. (The 'completion date') The vendor may, at its sole discretion, and on notice to the purchaser given not less than 1 month before the completion date, extend the completion date to such other date as advised by the vendor from time to time provided that the total period of such extensions of the completion date shall not exceed 12 months from the first designated completion date, except in the case of force majeure.''
Please elaborate on this and advise if I am eligible for compensation after handover?
Or even to get my 60% payment back from them.
Thank you!
Dear questioner,
As the wordings mentioned above, the developer can delay the handover of the project for a period of 12 months from the date of handover.
If the project is delayed beyond this period (after 12 months), then you can ask for compensation for delay in handing over of the property.
We can help you in this case as we are handling similar cases in Dubai.
If need be, kindly contact us via phone for a detailed discussion or write us an email for further assistance.
Dear questioner,
Pursuant to the information provided, the developer can delay the project only for 12 months from the date of the agreed completion of the project. But for the further delay, you may claim compensation, but we need to see your SPA to give you proper advice.
To have a detailed discussion, kindly contact us via phone or email.
Thank You!
Dear questioner,
They have the right to extend the completion date for another 12 months, it means that after 29 Feb 2020 you can terminate your agreement and recall back your paid 60%, plus all fees paid and loss (including damage and compensation for holding your fund till the date of termination plus interest).
* Contact us via phone or email to provide you with legal advice or legal services.
Mohamed Noureldin
Legal Consultant (Licensed in Dubai)
Dear questioner,
Please note that the seller has notified you with more than 12 months as mentioned in the SPA, however, you still not entitled to sue him right now in order to claim the money because the second notice they sent you.
We recommend you to wait until the first of October, then we can send them notarized legal notice in order to ask them to hand over the apartment or return your money back and terminate the SPA.
If you will register your case now, you might be facing rejection from the court as the seller already notified you.
Please feel free to contact me via phone or email.
Thanks!
