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Photograph by : @Rohani Tanasal, Senior Photographer, LuxuryProperty.com
Understanding the Defect Liability Period for Off-Plan Properties in Dubai
Purchasing an off-plan property can be an exciting journey. It's a investment venture that promises not only a new investment property but one that has been structured on fixed returns on investment so one critical aspect that prospective buyers must be aware of is the Defect Liability Period (DLP) for the property itself.
The DLP, as it is more commonly known in real estate parlance, is a period of time that plays a vital role in ensuring that the property you buy meets the expected standards and that any defects are addressed promptly. If you’re considering investing in an off-plan property in Dubai, here's what you need to know about the Defect Liability Period.
What is the Defect Liability Period (DLP)
The Defect Liability Period (DLP) is a fixed time frame after the completion and handover of an off-plan property during which the developer is legally obligated at their expense to rectify any defects or issues that have arisen from a schedule of dilapidations survey. This period serves as a guarantee for buyers, ensuring that the property is delivered in a condition that meets the agreed-upon standards and specifications as presented by the developer at the time of the purchase agreement.
Duration of the Defect Liability Period in Dubai
In Dubai, the Defect Liability Period is regulated by the Real Estate Regulatory Agency (RERA). According to RERA regulations, the standard DLP for off-plan properties is one year from the date of handover. This means that for the first year after receiving the keys to your new property, any defects that arise or maintenance or schedule of condition issues that become apparent should be addressed and remedied promptly by the developer at no additional cost to the buyer.
What Does the Defect Liability Period Cover?
The DLP acts as a collateral warranty and covers all defects related to construction quality and workmanship. This includes but is not limited to issues such as:
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Structural defects: Problems with the building's framework or foundation.
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Finishing defects: Issues with the quality of finishes like paint, tiling, and carpentry.
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Plumbing and electrical faults: Defects in the installed plumbing and electrical systems.
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HVAC issues: Problems with heating, ventilation, and air conditioning systems.
Important to note that the DLP does not cover fair wear and tear, nor damages caused by the owner’s misuse, or indeed maintenance issues arising from normal use.
Responsibilities of the Developer
During the Defect Liability Period, the developer is responsible for:
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Promptly addressing reported defects: The developer must respond to any defect claims in a timely manner and arrange for repairs or corrections.
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Providing clear procedures for reporting defects: Developers are required to provide a straightforward process for homeowners to report issues.
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Ensuring quality: The developer should ensure that repairs are done to a high standard, maintaining the quality of the property as initially promised.
Responsibilities of the Buyer
As a buyer, you also have responsibilities during the DLP:
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Inspecting the property: Conduct a thorough inspection of the property upon handover and identify any defects or issues.
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Reporting defects promptly: Notify the developer of any issues as soon as they are discovered to ensure they are addressed within the DLP.
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Maintaining documentation: Keep detailed records of all communications with the developer regarding defects and repairs.
What Happens After the Defect Liability Period?
In Dubai, Article (40) (a) and (b) of the Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property in Dubai states that a developer is responsible for fixing any defects in the structural parts of a jointly owned real property for 10 years upon receiving the completion certificate and minor defects [such as internal cosmetic issues] for one year from the date of obtaining the certificate of building completion.
Once the DLP expires, the responsibility for any further internal repairs or maintenance shifts to the property owner. At this point, you will need to cover the costs for any future repairs or replacements, except for any issues covered by warranties from manufacturers or contractors.
Article (40)
a. Subject to the provisions governing contractor agreements, as stipulated in Federal Law No. (5) of 1985, a developer will remain liable, for a period of 10 years from the date of obtaining the completion certificate of the Real Property project developed by him, to remedy or rectify any defects in the structural parts of the Jointly Owned Real Property
Key Takeaways
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Understand the DLP: Familiarize yourself with the duration and coverage of the Defect Liability Period as stipulated by RERA and the specific terms outlined in your purchase agreement.
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Be proactive: Inspect your property thoroughly and report any defects promptly to ensure they are addressed within the DLP.
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Plan: After the DLP ends, be prepared for ongoing maintenance and repairs as part of home ownership.
At LuxuryProperty.com we provide excellent investment advisory this includes advisory on your rights and responsibilities during this DLP period. By relying on our private client advisory service, you can be assured of a hassle free transaction and a smoother transition into your new investment property knowing that any initial handover issues will be addressed by the developer in accordance with the law.
