When a developer or seller of a property fails to fulfil his contractual obligations, does the buyer have a right to get compensation for the loss he incurred? How can a buyer ensure the safety of his investment while entering in to a contract? Let us understand.
Compensation clause in Sale and Purchase Agreement
It is well known that the source for any right is, the law or the contractual relationship.
In a real-state sale and purchase relationship, the buyer may demand compensation out of the sale and purchase agreement if its provisions include a compensation clause. In the absence of the compensation clause, the buyer derives this right from the provisions of the law. In other words, the buyer’s right to compensation is either a contractual right originating from the contract or a legal right by force of law derived from the general rules of contracts.
Based on the above, the buyer, before entering into the contractual relationship, must ensure that the contract guarantees him the right to compensation in the event that the developer or the seller fails to fulfil his contractual obligations.
Seek Legal Advice from an experienced real estate lawyer
It is advisable that the buyer seek legal advice from a property lawyer in Dubai on the sale and purchase agreement in order to obtain sound legal advice and secure his contractual position.
We conclude from the above that the right to compensation is guaranteed to the buyer in the event that the developer or seller fails to fulfil his contractual obligations towards the buyer, whether this failure is related to the completion of the unit purchased on the map, related to the date of its delivery to the buyer, or related to its specifications or area.
Proving the breach of contractual obligations by developer
The buyer should know that his claim for compensation for the developer’s failure to fulfil his obligations places the burden of proving this failure as well as proving the damage that has befallen on him, its amount, and how it is calculated.
If you are looking for a property lawyer in Dubai who can walk you through all the processes related to purchase and sale of a property in Dubai, you may reach out to SAZ advocates.
Samira al Zarooni advocates and legal consultants have an experienced legal team who possess solid experience in sale and purchase agreement in Dubai and all over UAE, and we are ready to assist you if you are facing any trouble related to real estate and property matters.
Get in touch with us on info@zaroonilawyers.com , call or whatsapp us at +971585323296.
