What Happens If Your Off-Plan Property in Dubai is Delayed?

Before you decide to buy an off-plan property in Dubai, it’s smart to do some homework. Here’s a guide in plain language to help you make an informed decision and know your rights in case things don’t go as planned.

Before You Sign:

1. Check Registration: Make sure the real estate project is registered with Rera. This means it follows the rules and is legit.

2. Escrow Account: Ensure there’s an escrow account for the project. This keeps your money safe during development.

3. Project Progress: Know how much of the project is done and when it’s expected to finish. This helps you plan your investment.

4. Developer Details: Check if the developer is registered with Rera. Find out if they own the land or have an agreement with the owner. This tells you if the developer is trustworthy.

5. Approvals and Permits: Confirm the developer has the necessary permits from DLD and Rera to sell off-plan units. This ensures you’re investing in a legitimate project.

Your Rights as an Investor:

Dubai has a law (Law No 8 of 2007) that requires developers to open and maintain an escrow account for each project. This law ensures transparency and accountability.

What the Law Says:

– Developers must open an escrow account for each project.
– This account must be maintained throughout the development process.

If a developer wants to sell off-plan units, they must request to open an escrow account. This account is exclusively for that project, and no one else can touch the money in it.

Your Payments:

All the money you pay as an investor goes into this escrow account. The law says there must be a written agreement between the developer and the escrow agent. This agreement ensures that your payments are deposited in a special account for the project.

Access to Records:

You have the right to access the records of the escrow account. This means you can check where your money is going.

Project Not Completed?

If, for some reason, the project isn’t completed, the escrow agent, with consultation from the DLD, must take steps to protect your rights. This includes finishing the project or refunding your payments.

What You Can Do:

– Understand the terms in your sale and purchase agreement.
– Know the details about project completion, extensions, and other important matters.
– Get advice from a legal expert in Dubai if needed.

In short, if you’ve done your homework and invested in a legit off-plan property, the escrow agent will step in to protect your money if the developer can’t deliver on time. If issues arise, reach out to the DLD for guidance. Always understand the terms of your agreement and consider seeking advice from a legal professional.