Questions & Answers
What legal action can I take for delay in property handover?
I purchased an apartment in 2017 with a completion date of Q4-2018. Till now, the construction is not complete. And based on the construction update, it will not complete in 2020.
As per the agreement I already paid 50% of the amount and rest 50% is due on completion. As per the Default and Termination clause of the SPA, I sent the notice for termination on 5th Jan 2019.
This clause clearly states that "If the seller has not served the completion notice within a period of 12 months from the anticipated completion date (unless the delay is caused by force majeure) and the purchaser has fulfilled all of the purchaser obligations under this agreement, the purchaser shall be entitled to send a written notice to the seller requiring the seller to complete the building works within 90 working days of receipt of the purchaser's written notice.
That time has elapsed and now I have to send the second notice as the remedial period of 20 days is also coming to an end.
Please advise on the plan forward.
Hello,
As per your query, the answer is as follows:
First of all, we need to know, in which emirate the property is located.
Secondly, if it is located in Dubai, then the laws of RERA, Dubai will be applicable.
As per the Executive Council Resolution No. 6 of 2010, a delay in the part of the developer without valid reasons can be proven as negligence (through court), provided you have to enquire with RERA regarding the condition of the project and see whether the project is facing any funds issue for completion or any other reason for the delay.
Moreover, due to COVID-19, every project is facing the difficulty due to lockdown and declaration of the emergency. The only way out is to wait for completion and to take regular updates from RERA.
For the real estate sector, Force Majure for COVID-19 where cancellation of the agreement through court is concerned depends upon scenario and case by case basis.
Otherwise, the only option is to go before the court, in order to change the payment terms or for any other relief.
Please free to call or e-mail us.
