Questions & Answers
Cancellation of an off-plan property while an SPA is not signed and the project is completed
I booked an off-payment plan in 2016 for a residential project in Dubai.
As per the booking form, the expected completion date of the project was Dec 2017. The project was completed recently in Feb 2021.
I paid 30%in installments and the remaining, 70%, is due for payment now at the time of handover.
I only signed the booking form in 2016. Neither developer initiated the reservation agreement and SPA nor I approached the developer till 2019.
I did not approach because I was not aware of any such documents. Due to significant project delays, I applied in Jan 2020 for a request of refund.
Afterward, I continuously followed up for the whole year. Now, they sent me the final notice that the project is completed and if I do not pay the remaining amount within a month, then my unit will be canceled.
I would like to ask:
Based on the above facts, what are my legal rights to claim a refund or compensation as I don’t sign the SPA and I already paid 30% of the amount to the developer?
Dearest,
You should pay 40% of the total amount at the time of cancelation by Dubai Land Department.
So that in your case, you either pay the rest and get the property or pay 10% extra and lose it.
The developer has the right to send 1-month notice by DLD to the purchaser, otherwise, cancelation of the SPA shall apply.
Should you need any further legal assistance, don't hesitate to contact us on this matter.
I look forward to hearing from you!
Dear Client,
Good day!
Yes, you have the right to termination and full refund plus compensation thereof for the delays done.
We need to review the SPA to confirm our legal advice and we would strongly recommend you to come over to the office so we can discuss and proceed with the next course of action.
For further assistance, please feel free to contact us on our phone or send us an email.
Thank you.
