Question:

I want to buy an off-plan property from a developer. How do I guarantee my rights? What legal procedures must be taken for the purchase process to be completed correctly and the property to be received? What is the difference between buying a freehold property and a non-freehold property?

Answer:

Difference Between Freehold and Non-Freehold Property

• Freehold Property: When you purchase a freehold property, you own it outright, whether you pay in full or use a mortgage. Freehold properties are estates of indefinite duration, meaning you can own them for a lifetime or forever.
• Non-Freehold (Leasehold) Property: In a leasehold agreement, you purchase the rights to the property for a limited period, usually around 99 years. You do not own the property but have the right to use it as established in the lease or rental agreement. Ownership remains with the landlord (lessor).

Steps to Guarantee Your Rights When Buying an Off-Plan Property

1. Choose a Freehold Area: 

Selecting a property in a freehold area is advisable to secure your investment legally.

1. Background Check on the Developer:

   • Track Record: Investigate the developer's previous projects.
   • Financial Stability: Ensure the developer is financially stable.
   • Quality and Delivery: Assess the quality of work and adherence to delivery timelines.

2. Visit the Property Site:

   • Understand the area and layout by physically visiting the property site.

3. Read and Understand the Sales Contract:

   • Ensure all terms and conditions are clearly stated.
   • Have a thorough understanding of your rights and responsibilities.

4. Register the Sales Contract:

   • After signing the sales contract, register it in the Interim Real Estate Register.
   • Upon completion, you will receive the initial contract of sale issued by the Land Department.

5. Inspect the Property:

   • Inspect the unit to ensure it meets the promised quality and that there are no issues before completion and delivery.

By following these steps, you can help guarantee your rights and ensure the purchase process of your off-plan property is completed correctly.