Two jurists confirmed that legislation does not regulate its payment.. and Dubai Lands: The matter is subject to agreements between the two parties

Investors: developers link the inspection and delivery of the property to the last payment

• Realtors: There are buyers who create meaningless defects in real estate in order to be late in paying.

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Real estate investors in Dubai reported that some developers link the inspection and delivery of the property to paying the last payment.

They told «Emirates Today» that they are sometimes surprised by the presence of defects in the real estate unit that they bought after receiving it, and then they face difficulties in repair operations.

For their part, developers and real estate experts said that this matter varies from one developer to another, and is limited to a few developers, considering this to be wrong behaviors that the developer must correct, if he wants to preserve his reputation.

In turn, two legal experts said that the legislation related to the real estate sector does not regulate the process of paying the last payment, but the written contract between the developer and the buyer is what controls the process, and it stipulates when the last payment is due, while the Dubai Land Department refused to comment on the matter, contented Noting that this is subject to the agreements between the parties.

difficulties

In detail, the investor (T.Q), said that he had bought four villas in the (H.S) project from a real estate developer in Dubai, but he was surprised that he was required to pay the last payment in order to inspect the properties he bought, and added that after paying the required, he was also surprised by the defects After that, he faced difficulties in repairing these defects, indicating that he addressed the official authorities about this more than once, but to no avail, he said.

The investor (MA) also stated that he had bought a housing unit in the (B.M) project, and asked the developer to inspect the unit, but the developer refused to do so, on the condition that the last payment be paid, and then the inspection is done and the new unit is received.

The order was confirmed by the investor (MK), who said that the developer required him to pay the last payment, in order to allow him to inspect the property before receiving it.

constant complaint

In addition, the real estate expert, Muhammad Abu Hareb, said: “Indeed, there is a continuous complaint from investors in the real estate sector, about the pressures they are exposed to by some developers to pay the last installment of the unit price before inspection.”

Right to preview

The real estate expert, Raad Ramadan, stressed that the investor has the right to visit the project site and inspect the unit he wishes to purchase, and make any note to the developer or contractor, noting that the last payment can be linked to making the required adjustments for the investor.

The Director-General of "Future Path", Muhammad Al Ali, also confirmed that "the investor has the right to inspect and watch the unit after it is equipped, and the developer has no right to prevent this, because the investor has paid an amount that may reach half a million dirhams, and therefore it is not logical To pay this amount and not to visit his apartment.”

Suggestion

In turn, the CEO of FM Real Estate Company, Firas Al-Masdi, suggested that the apartment be inspected in a professional manner by specialists, such as specialized companies that send engineers to check all the details by following a certain technology, and using a smart application over the phone, so that all Something studied in a smart and easy way to review the property that has been inspected, and then follow up regarding correcting errors and whether they were corrected to the fullest or not.

Al-Masadi said that the approach of each real estate developer is different from the other in terms of dealing with this problem, noting that the developer whose reputation concerns him must be ready to face any malfunctions or errors in the apartment, and correct them in a short time, but added: “Unfortunately some developers do not They care a lot about this point.”

unacceptable phenomenon

For his part, the real estate expert, Muhannad Al-Wadih, said that “this matter exists in the real estate market in Dubai, and it is a phenomenon in my professional opinion that is not accepted by some developers,” stressing that this process can be organized, by having coordination or a system established for this matter, So that the buyer has the right to inspect the property and express his comments on it, and then agree on the modifications according to those notes and make the required repairs within a record period, in a way that makes the investor feel comfortable.

handling mechanism

Al-Wadiya stressed the need for there to be a mechanism to deal with such problems, such that the developer has a period of two weeks during which he fixes any defects, then receives the person and pays, but if the defects are not fixed, he has the right not to pay, on the basis that he receives a good property that provides him with comfort.

He said: "As for some developers not delivering until the last payment is paid, unfortunately the developers use contracts and the mechanism of pressure on the customer, and that the company has internal laws and others," calling on decision-makers to take strict measures to solve this issue.

He added, "But to be fair, there are some buyers who bring out meaningless defects in the real estate unit, in order to be late in paying, and this is unacceptable."

third party

Al-Wadiya suggested that a third party perform the inspection, and this third party is already present through the companies that provide inspection services on behalf of the buyer and the developer, pointing out that the observations related to the inspection must be mentioned, agreed upon and then paid on this basis.

He said, "The current situation is 100% on the side of the developer, not on the side of the buyer."

wrong behaviors

In the same context, the Chairman of the Board of Directors of Al-Waleed Investment Company, Muhammad Al-Mutawa, confirmed that the existence of this matter or not varies from one developer to another, but he said: “The matter is simple, so the buyer should come to inspect the unit, deliver the last payment and then receive, and this is what is supposed Otherwise, it is against the law. The buyer has the right to inspect the unit, and the developer has the right to receive the last payment after inspecting the investor. As for the developer handing over the unit without receiving the last payment, this is not permissible according to the contract stipulated between the two parties.

He added that the matter is limited to a few developers, considering this to be wrong behaviors that the developer must correct if he wants to preserve his reputation.

Legal aspect

On the legal side, the legal advisor, Shawq Al Kathiri, said: “The truth is that the legislator in Law No. (13/2008) regulating the initial real estate registry in the Emirate of Dubai, and Executive Council Resolution No. (6/) 2010) With the adoption of the executive regulations of the aforementioned law, they obligated the developer to link the payments to the proposed construction stages of completion, and allowed the investor to demand the termination of the contract in the event the developer refused to link the payments to the stages of completion, or the developer violated the agreed specifications and made a fundamental change in the unit

She added that "work has been carried out in implementation of this law to include the developer in the off-plan sale contract a schedule of payments, in which the payments are linked to the various stages of completion, and the last payment is resolved upon delivery."

Preview requirementاط

Al Kathiri pointed out that “this does not prevent the investor’s right to require inspection before payment,” explaining that a distinction must be made between two things, the first is the last payment, which is made according to the contract of the agreement concluded between its two parties, or upon receipt in kind unless it is agreed otherwise, while The second matter is inspection, since according to the text of Article 490 of the Civil Transactions Law, the sale must be known to the buyer in order to avoid ignorance, and the thing sold must be known to the buyer by stating its descriptions and conditions.

She added, “In summary, if the developer has the right to refuse to hand over the unit to the investor before paying the full price, the investor has the right to require inspection before payment, given that the developer’s commitment to the essential specifications is a preliminary obligation, or in other words, it is permissible, according to the law, for the developer to refrain from delivery before payment the payment, but he may not prevent the investor from inspecting it before making the payment.

Contract

For his part, the legal advisor specializing in real estate affairs, Muhammad Al-Qawasmi, confirmed what Al-Kathiri said, pointing out that the law does not regulate the process of paying the last payment, but the contract is the law of the contractors, which stipulates when the last payment is due.

Al-Qawasmi said that according to normal conditions, the developer sends a message to the buyer stating that the unit is ready to receive, and if there are light defects that exist, the developer must correct them within 12 months, because according to the law, the specifications in the contract must be adhered to.

He added, "If it turns out that there are fundamental defects, such as a large difference in the area, or something else, the buyer has the right to refrain from paying because there is a defect in the obligations."

• Realtors confirmed that the matter varies from one developer to another, and is limited to a few developers.

Property completed

The General Manager of Al Habtoor Group, Ghaleb bin Kharbash, confirmed that the developer has the right to demand the last value if the property is completed, while the investor has the right to inspect the property before the final payment, and to agree on the required maintenance, pointing out that in the event of receipt, the developer submits a message to the property owner about the things he will Repairing it within a period not exceeding 12 months, and requesting warranty certificates from the developer.

Finishes

The CEO of "MAG Real Estate Development", Talal Mowaffaq Al-Qaddah, said that a number of real estate developers have problems with finishes and adherence to the required specifications, which offends the rest of the developers.

He pointed out that what is required is that there be supervision from the Dubai Land Department and the municipality on the quality of the final real estate product.

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