What Happens When You Bought a Property Off-Plan, Paid 80%, Then Lost Your Job?

Life is unpredictable, and sometimes circumstances change in ways that can significantly impact our financial stability. This is particularly true for those who have invested in off-plan properties. What happens when you’ve paid a substantial amount towards your off-plan property and then lose your job? Here’s a real-life scenario that delves into the legal aspects and possible solutions.

The Scenario

Imagine you’ve invested in an off-plan property and have already paid 80% of the property’s value. Suddenly, you lose your job and find yourself unable to make the final payment. You approach the developer with a request to sell the property or terminate the purchase agreement, only to be told that neither is possible as per the contract. What are your rights, and what can you do in such a situation?

The Legal Perspective

According to the terms of most off-plan property purchase agreements, you are bound by the contract unless both parties agree to make changes. This means you can’t sell the property to another buyer until the project is complete and the property is officially yours.

Understanding the Law

The law has specific provisions for such situations, particularly Article 11 of the Law No. (19) Of 2020 Amending Law No. (13) Of 2008, which regulates the Interim Real Property Register in the Emirate of Dubai. The law outlines the following:

– If the project is more than 80% complete: The developer can retain up to 40% of the property’s value and must refund any excess amount to the purchaser.

– If the project is between 60% and 80% complete: The same rule as above applies.

– If the project is less than 60% complete: The developer can retain up to 25% of the property’s value and must refund any excess amount to the purchaser.

What Can You Do?

If you find yourself in such a predicament, it’s crucial to take immediate action. Here are some steps you can take:

1. Contact the Land Department: The first step is to notify the Land Department to mediate between you and the developer. They can help negotiate a new payment plan or even convince the developer to accept a new buyer for the property.

2. Legal Consultation: Consult a legal expert to understand your rights and obligations better, and to explore any loopholes or options you might have missed.

3. Negotiate with the Developer: Try to negotiate a new payment plan or other possible solutions directly with the developer.

Conclusion

Investing in off-plan properties comes with its own set of risks and challenges, especially when life throws a curveball your way. However, understanding the legal landscape can help you navigate these challenges more effectively. Always remember, the law is there not just to protect developers but also to safeguard the rights of buyers. So, if you find yourself in a tight spot, don’t hesitate to seek legal advice and take appropriate action.