What you need to know if buying property?

New Buying Process in Off-plan Development Sales

Buying a property off-plan can be a challenging experience. Buyers can neither see the unit they are purchasing nor visit the property. The developer is selling the ‘concept’ for a unit not yet built and the buyer is trusting that the developer will deliver on the promise of the ‘concept’.

To help drive consumer protection, Law 27 of 2017 requires developers to allocate a seven-day consideration period to prospective buyers to make a final decision on a unit purchase in an off-plan development. Developers must disclose detailed information to prospective buyers. On selecting a unit, a prospective buyer can ‘reserve’ the unit, review the information provided and take seven days before entering into a ‘binding’ agreement with the developer. This allows buyers times to know the facts and make an informed decision.

Visit our helpdesk for more information and to download our Factsheets for Buyers.

The Process

  • A 1% deposit is required to make a ‘reservation’ agreement. If the buyer does not proceed, the deposit is returned minus a nominal processing fee (200BD).
  • Buyers who proceed and enter into a sales agreement will pay a 10% deposit
  • A developer is required to disclose information to prospective buyers on:
    • Management and implementation of the project
    • A two- year forecast of buyer payments for maintenance and service charges
    • A copy of the Joint Property Bylaws
  • When the buyer signs the contract, the disclosure documents forms part of the contract thus giving some contractual support to the buyer some rights.
  • The property developer has legal rights if the buyer fails to complete the transaction. Similarly, the buyer has legal rights if the property developer fails to complete the handover.