Question: I am looking to invest in an off-plan property in Dubai. Once the handover is completed, is the developer responsible for the work done? If there are any construction faults like leaky roofs etc, will the developer be required to fix it?
Answer: In Dubai, Article (40) (a) and (b) of the Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property in Dubai states that a developer is responsible for fixing any defects in the structural parts of a jointly owned real property for 10 years upon receiving the completion certificate and minor defects for one year from the date of obtaining the certificate of building completion.
“Article (40)
a. Subject to the provisions governing contractor agreements, as stipulated in Federal Law No. (5) of 1985, a developer will remain liable, for a period of 10 years from the date of obtaining the completion certificate of the Real Property project developed by him, to remedy or rectify any defects in the structural parts of the Jointly Owned Real Property.
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b. The developer will remain liable, for a period of one year from the date of handover of the unit to the owner, for repairing or replacing defective installations in the jointly owned real property. These include mechanical and electrical works, sanitary and sewerage installations, and similar installations. When an owner refrains from taking possession of his unit for any reason, the above-mentioned liability period will commence from the date of obtaining the completion certificate of the real property project developed by the developer.”
Based on the aforementioned provisions of the law, as you are planning to buy an off-plan property for the purpose of investment, a developer remains liable in case of any repair — major or minor — for the period prescribed by the law after obtaining the certificate of completion.
However, it is always advisable to have a sale agreement signed by you and the developer for the said property wherein all the rights and liabilities of both parties are clearly mentioned. In the event of any issue faced by any parties in the foreseeable future, the agreed terms and conditions sale agreement can be considered to resolve the matter.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.