Questions & Answers
A developer delays an apartment handover due to COVID-19 pandemic
I have purchased an apartment in a master community project in Sharjah in Dec-2018 with an anticipated apartment completion date of 31-Dec-2020.
The developer has announced, through a periodic masterplan construction newsletter, the construction contract award of my apartment phase on Aug-2020 with a new anticipated completion date by the end of 2021.
On Nov-2020, the developer sent a Notification of Extension of Anticipated Completion Date E-mail to postpone the anticipated completion date from 31-Dec-2020 to 31-Dec-2021 due to the COVID-19 pandemic as a Force Majeure event referring to the Force Majeure Events and Foreign Delay Events Clause in the signed Initial Sale and Purchase Agreement.
As per the initial anticipated completion date, the construction contract award should have been done prior COVID-19 pandemic to be ready for handover on Dec-2020, however, the developer has justified all the delays due to the COVID-19.
The intent is to know if any compensation can be done due to such delays.
Dear Sir,
In order to provide you with any further advice, we need to review the Sales and Purchase agreement.
This is necessary to determine the completion date, extension of the completion date, and other terms that may determine the contractual obligation of the parties.
Please note that the agreement contains legal terms that may be difficult for the layman to interpret which may be hidden in the agreement. Therefore, all the agreements have to be reviewed by the lawyers in order to determine the rights of the investor.
If you want us to review the agreement, kindly revert back so that we can schedule an appointment with you accordingly.
We look forward to hearing from you soon.
Yours sincerely,
