Tuesday, October 26, 2010

Property Sale deed can be terminated in case of difference in specs

The legal experts in Dubai have clarified that a purchaser can approach a competent court to seek termination of the sale contract, in case of any material difference is found between specifications mentioned in the sale contract and the actual specifications delivered.

A Partner and Head of Real Estate Middle East for Norton Rose group, Nick Clayson, said that the law does offer protection to purchasers, in case the measurements and/or specifications of a property differ from that mentioned in actual purchase agreement. But, the remedies provided, depends on the degree of deviation.

A Partner at Afridi & Angell, Shahram Safai, said that general the specifications are so different that the purchaser would not have even received the benefit of his/her bargain.

Decree 6 of 2010 stipulates that a purchaser can even seek termination of a purchase contract, in case the specifications are considerably changed, he pointed out.

According to the current rule, in case the measurement of a property is found to be more than five percent less than the measurement of the property specified in sales and purchase agreement (SPA), the developer is obliged to compensate the purchaser.

A well-drafted contract should specify the rights and remedies of the parties in the event of any discrepancies in such issues. But, even the contract tend to be fairly varied in the region, when it comes to such issued, and do not match international measuring standards, Clayson said.

However, the best thing that a purchaser can do, is to ensure that he obtains a well-drafted contract with intentions of the parties clearly set out and retain copies of all correspondence with developer in respect of the property, he said.

Clayson further pointed out that obtaining a snagging report on completion of the property can also assist the purchaser in the event of any subsequent claims against the developer.

Meanwhile, Safai said that a report by quantity surveyor or professional engineer commissioned to make such an assessment may be required to prove difference in specifications in such issues, although snagging reports may prove as helpful supporting documents.

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