Investing in properties that are still in the building stage comes with a few legal steps that buyers must go through. These may relate to project approvals or builder commitments. It is useful to stay informed early on to avoid delays or confusion later during the handover or registration process.
Missing project approvals:
An off plan property Dubai must receive permits and approvals from the local authorities. These include land-use permissions, building permits, and environmental clearance. If any of these are missing, buyers may face delays or even risk cancellation of the project. Request a copy of each approval before making a payment.
Unclear ownership of project land:
One legal hurdle is unclear land ownership. Before construction begins, the developer must have full rights to the land. If ownership documents are missing or disputed, the entire project may be delayed. Buyers should check that the land is registered under the developer’s name with no legal claims against it.
Incomplete or unclear sales agreements:
Some agreements are written with unclear terms or missing details. This may include handover dates, penalty clauses for delays, or refund conditions. If these are not clearly stated, legal disputes may arise. Buyers should ask for a detailed contract and avoid signing before going through each point.
Delays in handover and lack of legal action:
If the project is delayed, buyers may expect compensation or legal steps. However, not all contracts clearly explain what happens in such cases. Developers may include general statements instead of exact penalties. It is better to have a clause that clearly states the action if the flat is not handed over on time.
Disputes over changes in project layout:
Some developers make changes in design, unit sizes, or building structure during construction. If the buyer’s agreement does not fix the unit’s size or features, disputes may arise later. Buyers should check if the agreement includes fixed measurements and limits on changes during the project.
Legal limits on resale before handover:
In off plan deals, some buyers plan to resell before project completion. However, this may not be allowed without approval from the developer or local authority. There may be transfer fees or a holding period. Buyers should check the resale terms in writing to avoid breaking any rules.
