Finishing an ownership corporation was never a cakewalk. In truth, this is a complex and comprehensive procedure requiring an assessment of numerous essential considerations such as costs, ROI, competence and above all, the company’s capacity and track record of giving investors the keys promptly. In recent years, the number of new house transfers in the UAE has increased exponentially. This has strengthened competitiveness by providing more handover services. It is thus more important than ever to critically investigate their offers and assess their approach to mitigate any delay in property transfer until the correct one is selected.
Kaizen AMS makes sure your selection is not regrettable. We have nearly three decades of experience carrying out a seamless, efficient transfer process with complete property protection and greater returns. The property’s most excellent care and shape constantly remain at the top of our property managers’ priorities.
- What challenges the handover process?
The transfer is easy. In many circumstances, however, the monumental real estate transfer process becomes a nuisance for investors. The most critical villains are inefficient management, limited support and the creators’ bad customer service. The convoluted procedures and hidden charges make it even harder for investors to understand the transfer standards. Several developers will simply deliver the completion notice and request a handover from investors or impose heavy risk fines within one month. This is causing countless hardship to investors from overseas and to individuals who have waited for years to complete the construction process owing to recurrent delays. Developers need a well-defined strategy in place to reduce the investors’ issues and avoid building delays.
The Top Delay Reasons
The main factors behind the delay in the transfer procedure are
- Short-term notice of completion
Once the project is complete, and the appropriate certification has been acquired, investors receive a 30-day notice of completion from the developer. Investors are obliged to clear up all outstanding duties on the property price and other statutory costs for the unit’s new owner. Several other responsibilities must also be fulfilled before the keys are handed over. The above technique looks interesting. However, it presents a series of obstacles for many investors. It is pretty aggravating for many investors who waited for ages to reach this point and now only have 30 days to stop their final payments. In this short period, overseas investors do not necessarily have to pay and come to Dubai to fulfil these final transfer processes.
- Final payments and paperwork pending
In addition to the developer’s completion notice, the investor receives the transfer package with crucial details on the completion date and account statement. The account statement indicates the total money paid to date and the amount owing for ownership of the property. The final payment % varies from developer to developer, but closing costs remain similar.
The leading cause of the delay in the transfer process in most cases is pending final payments and the paperwork on the part of the investor. To minimise delays in handover, the investor should have paid all the requisite fees before the handover date, and the relevant paperwork has been presented to the developer.
- Project cancellation by RERA
One of the major causes for the delay in the transfer process is the cancellation by the Real Estate Regulatory Authority of the project (RERA). RERA cancels the tasks when the land is affected by project planning or re-planning. In this instance, assignments are handed to the wind-up committee and the Dubai Real Estate Court to settle purchasers’ rights and wind-ups. It is usually essential to check on the website of the Dubai Land Department in good time the status of the project under the tab ‘Project Status.’
- Heavy Sanctions
In this phase, the investor must clear the final balance owing to the property’s purchase price by the conditions of the sales agreement with the developer. The penalty is imposed on an account. In the event of failure to pay an investor, the developer has a right to apply, depending on breach of the sales agreement with the investor, to the Dubai Land Department for termination of the unit. Payment should always be made within the time limit so as not to risk losing the team.
Ways to prevent delays in the transfer process
Investors and buyers can use many techniques to minimizing the risk of delayed property transfer.
- Conduct proper development research
An in-depth and in-depth investigation of the developer is essential before considering the acquisition of the property. Potential investors need to investigate the developer’s record of finishing projects and transfers according to schedule. It is undoubtedly sensible to contact other investors and visit the project website to acquire an idea.
- Check for the Escrow Developer Account
By Law (8) 2007, all UAE real estate developers must register an Escrow account with the Dubai Land Department (DLD) to sell off-plan units. The investor must check that the developer has an Escrow account by visiting the DLD website and looking for the project in question. All payments paid to the developer by the investor must be placed in the Escrow account registered.
- Required permits check
Before the developer has started dealing, an investor must check that the developer has all the necessary permits and approvals for marketing and selling off-plan properties from the Dubai Land Department.
- Review the contract clauses thoroughly
To safeguard their interest and rights under unforeseen circumstances, the potential investor must adequately review the terms of the Sales & Purchase Agreement. Before the agreement is signed, it is necessary to examine whether the developer has mentioned all the provisions and plans for managing any form of delivery delay.
- Registration check for RERA
Potential investors must confirm that the project and developer are registered before investing with the Real Estate Regulatory Agency (RERA). Most developers registered with RERA have a good history of completing the project transfer on schedule. This information is available on the website of the Dubai Land Department.
- The Secret Hindsight Process in Kaizen
To carry out all responsibilities involved with the handover, Kaizen engages highly skilled property inspection experts. They are well trained to conduct complete inspections of each property. Our property inspection experts give the developers a warning on the projected project completion date. Please note that the Kaizen handover team works rigorous site visits at regular intervals subject to the developer’s first notice on project completion. Our Developer and Transfer Team will next collect project details, customer details, DEWA premise numbers and financial reports, as well as invoices for those clients with an excellent balance. The team also prepares the first contact with all customers and notifies them of completing the building certificate (BCC). The projected transfer date is also given along with service-oriented architecture (SOA). The Community and Owner’s Association Team is responsible for preparing and delivering customer service charges invoices at the BCC. Please offer guidance within a 30-day notice, and invoices are created and issued to customers.