Questions & Answers
How can the investor void the contract If the developer fails to give a disclosure statement?
Is it possible to void SPA for an off-plan apartment under Direction for General Regulation concerning Jointly Owned Properties 2010?
According to Article 4 (1) of Direction for General Regulation concerning Jointly Owned Properties 2010, before a Consumer signs a contract to buy a unit in a project under construction from a Developer, the Developer must give to the Consumer a disclosure statement.
According to Article 5 (1) of the said Direction, “If a Developer fails to give a statement under subclause (1) of article (4), then the contract in respect of which the statement should have been given is void and of no effect”.
1. Does this work in practice?
2. Assuming that the Developer failed to provide the Disclosure Statement as per Article 4 (1) of the Direction, how can the investor void the contract as per Article 5 (1) of the Direction?
Thank you!
Dear Questioner,
As per your question, though there are Directives on the Direction Regulation concerning Jointly Owned Properties, JOPD, however, there is no concept as such the Agreement shall become void on non-declaration.
The required compliances for the RERA are for the investors to be aware of the project. Moreover, the production of such documents would generally indicate that the developer strives for best practice and works collaboratively with RERA and the Dubai Land Department.
Hence, though it is mandatory, if the developer is not complying with the regulation, the contract would not be void. You may complain about this to RERA and get some solution or file a case.
Please contact us further for more information.
