What protections are in place in Dubai to secure and safeguard a purchasers funds during the construction i.e. development phase of a project?
Unlike other jurisdiction e.g. the United Kingdom, United States and Canada, Dubai currently does not have legislation in place regarding minimum disclosure requirements by developers to purchasers who purchase property ‘off-plan’, nor are there any statutory protection for purchasers whose houses or apartments do not conform to the initial plans of the developer or representations of the seller or the seller’s agent. However, many developers have included provisions in their agreements the seller is required to hold the purchaser’s fund in an escrow account until certain construction milestones have been reached. In other agreements, the seller is required to post a bank guarantee. A review of the sale and purchase agreement will indicate whether this type of protection is made available. The forthcoming Strata Title Law should include some minimum disclosure requirements which are targeted at securing the purchaser’s interests in off-plan and purchasers should request to see evidence
Unlike other jurisdiction e.g. the United Kingdom, United States and Canada, Dubai currently does not have legislation in place regarding minimum disclosure requirements by developers to purchasers who purchase property ‘off-plan’, nor are there any statutory protection for purchasers whose houses or apartments do not conform to the initial plans of the developer or representations of the seller or the seller’s agent.
