Question: I am buying a property in Dubai and the am having problems. The property is not yet finished, but should have been. I am having difficulty getting an answer from the developer as to what the delay is. I now want my money back. What can I do.
Answer: This can be a difficult position in many countries. The first thing to do is go and speak to your lawyer. If you don’t have a lawyer then go and get one. Your lawyer should be able to check the contract and advise you on the situation. They should check first of all whether there was an agreed completion date or whether you have simply been told that the property will be finished by a certain time. Then they will be able to see whether the contract has any other clauses which allow the developer to legally delay completion. We quite often see contracts which allow some amount of delay in the completion without any penalty. There is also often a clause which allows delays of even longer due to circumstances outside the control of the developer. Having looked at this then it should be possible to identify whether the developer is indeed in breach of his contract. If they are then it is a matter of identifying whether the contract allows some form of compensation for late completion. The penalties are normally either a reduction in the price of the property, compensation per day that the property is late or some other sort of recompense (for example, a free furniture pack). It may even be possible to get the money that you have paid to them to date back.
It is vital that you speak to your lawyer about the options before making decisions yourself. If you have any stage payments left to pay speak to your lawyer before you either decide to withhold these payments or even to make them – as either of these actions can serious consequences for you.
The last thing is to discuss with your lawyer whether any action is worth taking – bearing in mind the cost, time and chances of success.
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