Off-plan property sales are exciting. Buyers get a chance to own a brand new home before it is even built. But this process is built on trust. To protect this trust, developers have clear legal duties. Their responsibilities form the backbone of a secure and successful purchase for every buyer.
Getting the project officially registered:
A developer cannot sell anything without first getting a government license. They must register the entire project with the proper authorities for off plan sale registration. This official step confirms the project is real and approved. It is the first and most important shield for a buyer, ensuring the development is legal and recognized.
Creating a dedicated project account:
Your money deserves protection. Developers must open a special bank account just for the project. All payments from buyers go directly into this account. The developer cannot use this money for other business or personal desires. Its sole purpose is to fund the construction of your building, keeping the finances secure and transparent.
Registering the property:
A developer must register the off-plan project with the relevant property registration system. This step officially records the sale and protects the buyer’s financial interest. It makes the buyer’s claim to the future property legal and secure.
Managing the escrow account:
All money from buyers does not go directly to the developer. It must be placed in a special, protected bank account called an escrow account. An independent bank oversees this account. Funds are only released to the developer at specific construction milestones, ensuring the money is used only for building the project.
Providing honest updates:
Communication is vital. The developer must provide regular, truthful updates on the building’s progress. If there are delays, they must explain the reasons. Buyers should never be left in the dark about the status of their significant investment.
Handing over the finished unit:
The final responsibility is to complete the building on time and to the promised standard. Once done, the developer must obtain the completion certificate from authorities. They then coordinate the official handover of the unit to the buyer, making the dream a concrete reality.