When Property is sold to a New Buyer

Purchaser has the right, as per Law, to sell a property to a new buyer if certain conditions are met. These conditions or procedures are set by DUBAI Land Department. Articles of Law related to Property Registration (Visit us for grabbing details), are available to explain such situations. When the purchaser is failed to obey or fulfil his obligations as per the contract, (OFF-PLAN Agreements), which is made with the developer, then certain set conditions are applied;

1-     Developer has to inform DUBAI Land Department about, the purchaser and its inability to, pay the obligations. It has to be done through the procedures made by DUBAI LAND DEPARTMENT. For example, there is a form by DLD, which has to be submitted by the developer as a request to DLD. This form contains all the details and information about both parties e.g. developers and purchasers, details of the property, price, time frame, sales purchase agreement, the amount paid by the purchaser, an amount not paid by the purchaser etc.

2-    Once the DLD has received the request, the DLD has to start its working as soon as possible. DLD has to serve a notice to the purchaser by giving him 30 Days. This is called as 30 Days’ Notice by DLD to the purchaser. It’s a written notice which can be sent through Electronic Email or by the person.

3-    DLD also has to play a role in mediation and settlement between buyer/purchaser and Developer.

4-    After serving the notice to the buyer, if the requirements are not fulfilled, then DLD has the right and authority to issue the order, in favour of the developer.

5-    Total percentage of completion of the agreement, also plays an important role in the decision-making. We will throw the light on this.

A-   If the percentage completion of the Real Estate Project is more than 80% of the total project then, the developer has the right to keep all the amount paid by the purchaser as well as the right to demand the balance amount, which has to be paid by the purchaser.

B-   Developer has also the right to request DLD for auction. DLD will auction the apartment and compensate the developer. Still, the balance can be put on purchaser’s side, if the developer can’t collect his cost even after auction.

C-   If the off-plan is terminated, then 40% value can be retained, mentioned in the SPA. Balance has to be paid by developer to the purchaser. The refund needs to be managed, within 1 year from termination of SPA, or within 60 Days from the date of resale to a new/another buyer.

D-  Similarly, if 60% project has been finished, then the developer can retain 25% of the total value and can also terminate the contract unilaterally.

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