Attraction and Risks

Developers offer attractive prices and easy payment plans for properties still under construction (Off-Plan). However, this investment carries risks of delivery delay or developer default.

Escrow Account

To protect investors, developers must deposit buyers’ funds into a “Guarantee Account” (Escrow) specific to the project. Funds are only released based on construction milestones approved by a consultant. This prevents the developer from using your money for other projects.

Points to Review in the Contract

• Delivery Date: Must be clearly specified.
• Delay Penalty Clause: Is the developer liable to pay a fine for every month of delay?
• Final Area: Allowing a small margin of difference (e.g., 5%), but any larger shortage must be compensated to the buyer.

If the project is unreasonably delayed, the buyer has the legal right to terminate the contract and recover their money with compensation.