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Terminating SPA and seeking compensation for delaying handover of property

What are the rights and remedies for the investor if the real estate developer has proven to have acted in bad faith?

Assuming that there is evidence that the developer has consistently provided false/misleading information, failed to provide material information, and acted dishonestly, does this breach of law create any rights for the investor in addition to the rights arising from breach of contract?

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Sunil Ambalavelil

Colin Biggers & Paisley Lawyers (Middle East)

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16 Feb 2021, 12:57

We need more information in this regard, If you do have sufficient proof we can terminate the SPA and claim compensation.

But we would need to see relevant documents and need more details to advise you accordingly.

You can call us on the phone.

Regards.

16 Feb 2021, 13:11

Thank you.

Clarification to the above question:

Scenario 1: the developer delayed the project for 3 years

Scenario 2: the developer delayed the project for 3 years AND acted in bad faith

Assuming that the scenarios are identical except the presentation of extra evidence of acting in bad faith under Scenario 2, would it make a difference to the rights of the investor?

For example, is the investor entitled to extra compensation in case of Scenario 2 as compared to Scenario 1?

17 Feb 2021, 05:16

Dear Questioner,

We can claim compensation in both the scenarios if proved.

We would need to determine what you mean by "bad faith", to give you appropriate legal advice.

Regards.

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Sweta Singh

Aceptive Legal Consultants

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16 Feb 2021, 13:19

Dear questioner,

You have full rights to terminate the mutually signed SPA and ask for a full refund of your investments from the developer if you can prove that the developer has breached a contract or has given misinformation.

Kindly contact us directly by phone or email for a detailed discussion.

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