Questions & Answers
Can I terminate the SPA for delay after the developer starts the handover?
I purchased two units in an off-plan project in Dubai in October 2019. I paid 15% each of the total amounts. These properties have been registered in DLD and on my name by the developer.
This project has also been delayed for two years (completion quarter 2020). The aim of my purchase was because it is near Expo 2020, the developer promised me to finish the project before the Expo started and use the units as a hotel.
But Expo has gone while construction was not completed. The construction has been completed two months ago, but the handover is still ongoing now.
Now the developer is pressuring me to pay the balance, otherwise, they will inform the DLD and cancel the unit and forfeit my money.
The valuation of the two properties went down by 25%, and because of this, I can not sell with a huge loss. And I did not use them for Expo as well.
Can I terminate the units although 100% is completed now before the developer starts the termination process?
Dear questioner,
You can’t terminate the SPA regarding the delay right now.
You lost your chance by waiting for more than 2 years, now they completed the project which means they did their part.
All that you can ask is a compensation for the delay. But to do that, you have to take over the apartment and pay the remaining balance.
Note: if you deal with the developer for a hotel apartment, then they change to a residential apartment then you have the right to terminate the contract.
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