Questions & Answers
Compensation for the decreased area of property on delivery
Dear Sir,
For my apartment, I had paid for 943 Sqf and at the time of delivery, the developer is giving me space which is 6.16% less.
As per the DLD law, the developer has to compensate me but the developer is compensating for only 1.16% and stating that according to Law, the calculation in the decreased area will be based on the area above the 5% only.
Resolution of the Executive Council No. (6) of 2010 Approving the Regulation of Law No. (13) of 2008 Concerning Regulating the Initial Real Estate Register in the Emirate of Dubai - Article 13 – paragraphs 3 and 4 states that:
“3- The developer shall compensate the purchaser for any change if the net area decreased to more than (5%) of the unit net area.
4- The compensation due to the purchaser will be calculated, if the decrease in the net area exceeding the percentage stipulated in paragraph (3) hereof, on the basis of the value of the real estate unit..."
Need your advice. Will the developer compensate for 6.16% or only 1.16%?
Dear questioner,
Thanks for your inquiry.
Based on the articles of law, the developer is only liable to compensate you for the decreased space for whatever less than 5% of the contracted space, based on the actual market value of the property at the time of the compensation.
This is based on our experience in similar cases. So, the developer is only liable to compensate you for 1.16% and as per your question, the developer is following the law in their offer to you.
Of course, we should examine the documents to be able to provide you with more accurate advice regarding your inquiry.
Regards,
Ahmed Elnaggar
