Real Estate investor in Dubai are promised that they have a right to seek cancellation of contracts and claim complete refund, in case of delay in handover of units, and failure to accomplish all promised amenities as per sales contract.
According to the proposed law, an investor has the privileges to cancel contracts and obtain complete refund, in case the developer delays handing over of the units over eight months.
Another provision of the law, says it is mandatory for the developer to ensure they provide all promised common amenities in the contract at the time of handover. Therefore, gym, swimming pools and other promised common amenities in the building will have to be in functional status before officially handing over the key to owners. Failure to do adhere to the above, will enforce cancellation of contract by the investors.
Furthermore, another provision in the law states that if a unit after completion shows/proves 30 percent smaller than net area mentioned in the contract, the investor has the right to cancel the contract and claim complete refund.
It is mandatory for all the off-plan sales developers, to obtain all RERA approvals and register all saleable units with the Oqood system of Dubai Land Department, through the online registration system. The developer must register all contracts with RERA, and disclose complete information about the project’s handover timelines, escrow account etc.
The draft law further mentions that if the developer has failed to offer the investor an agreement within 15 days of signing the reservation form, the same will be considered “void”.
Sultan Bin Mejren, The Director General of Dubai Land Department, stated that the department has completed finalization of the draft law regarding protection of real estate investor, and the same will be implemented by end of June 2012.