What Happens if You Default on Off-Plan Property Payments in Dubai?
What Happens if You Default on Off-Plan Property Payments in Dubai?
In Dubai, purchasing off-plan property involves legal obligations outlined by the Dubai Land Department (DLD). When a buyer defaults on payments, it constitutes a breach of the Sale Purchase Agreement (SPA) with the developer.
Here’s a concise overview of the process:
- Notice from Developer: If a buyer fails to make payments, the developer can notify the DLD, initiating a 30-day notice period for the buyer to fulfill their obligations.
- Resolution Attempts: Before the notice, the DLD may try to resolve the dispute between the buyer and the developer amicably.
- DLD Confirmation: If the buyer doesn’t comply, the DLD issues a document confirming the completion percentage of the property.
- Developer’s Actions: Based on completion percentage, the developer can take legal action, including retaining payments, auctioning the property, or terminating the SPA and refunding the buyer.
- In summary, defaulting on payments can lead to legal consequences, including potential loss of payments and termination of the SPA. It’s essential for buyers to understand their obligations and seek legal advice if needed.
Remember, fulfilling payment obligations is crucial to avoid legal complications and safeguard your investment in Dubai’s property market.
