Unfortunately, this still does not guarantee the rights of buyers and does not guarantee the conclusion of the project if the developers do not comply with their own contractual obligations. Many potential buyers sign their purchase and sale contracts fairly quickly, thinking that they would not be able to negotiate with a respected developer and that they would miss the deal if they did not act quickly. However, this should not discourage the execution of complete due diligence for the developer and verification of the sales and sale contract by a lawyer. A full review is required to assess risks, particularly in this volatile market. While there are many factors to be assessed and considered based on the purchase and sale contract, we have highlighted below the eight main considerations on which buyers must focus before signing their contracts: according to the foregoing, a buyer who has complied with the GSB but has not taken possession until the agreed completion date in the spa may apply for termination before the competent authority, national courts or arbitration and seek reimbursement of the sums that have been deducted for its purchase. Under these agreements, the obligations to the buyer are important enough to ensure compliance with the payment rules. It is important to ensure that the payment schedule is linked to the construction stages and clearly sets the dates and deadlines. You must ensure that the registered owner of the property is properly mentioned in the sales and sale agreement. Where possible, it is also worth checking whether rights are granted with respect to the use of the property and possible restrictions. A copy of the master community statement must be requested to fully understand the type of use of the property. Buying out-of-plan real estate has become the new norm, with affordable prices and increased incentives offered, buyers are quick to jump on the train. Dubai Law No. (8) of 2007 On the Matter of Escrow Accounts for Real Estate Development (“Escrow Law”) was passed to guarantee buyers` money after the housing crisis.
Although there are heavy penalties for developers who violate Escrow`s law, there is no guarantee as to the end of the project or the total security of a buyer`s money placed in the trust account. Dubai Law No. 19/2017 was also adopted to amend certain sections of Dubai Act 13/2008 on the Real Estate Register Law in the Emirate of Dubai, which offered increased protection to developers. Developers can now file a complaint with the Dubai State Department (DLD) for non-compliance with their contractual obligations by a buyer. The DLD will then notify the buyer and, if necessary, try to reach an agreement between the developer and the buyer. This change has led to greater security in the procedures implemented by the DLD to enforce the developer`s rights. It is essential to ensure that the person authorized to sign the agreement is empowered to do so; otherwise, the whole agreement may be null and void. Ask for a copy of the commercial license to see if the licensed manager is the authorized agent, or request a power of attorney that authorizes the person who signs on behalf of the developer.