The Ministry of Commerce and Industry, represented by the off-plan sale program, has adopted the conditions and requirements related to the consumers` rights under the real estate development program for off-plan sale. According to these conditions, the real estate developer or marketer is prevented to receive payments in cash, but by check or a bank transfer to the account allocated to the project security deposit, provided that the down payment should not exceed five per cent of the real estate unit value, and the first payment should not exceed more than twenty per cent of the total value.
Furthermore, the guarantee period related to the basement, concrete and insulation works for the buildings should not be less than ten years from the date of handing over the real estate unit, as well as the warranty period for mechanical, electrical and other contractors` work should not be less than one year from the date of handing over.
During the contract period and in case of any delay in the installment, the Ministry requires that the deadline given to the buyer should not be less than sixty days, also all notices or correspondence between the developer and the customer should be in writing and not verbal, as well as the period of handing over the real estate unit, as stated in the contract, should not be extended more than one hundred and eighty days, also the legal procedures related to property transfer should not exceed thirty days from the date of issuing the certificate of building completion.
The Ministry approved the developer to sell some real estate units against one payment contracts, besides the developer is compelled to pay similar fee in case of delay of handing over the real estate unit at the time specified in the contract, and not to exceed five per cent of the unit value for one year after the end of the additional deadline (if any), and in case of more delay, the similar fee would not be limited to any ratio, and then it would be subject to the market price, in addition the contract should include a draft of the "Owners Association" system, related to the real estate project (if needed), with a brief statement about the customer`s financial obligations arising under this contract.
Also the developer is committed to provide all the public services for the real estate unit and whatever related to the project, such as providing electricity and water for the sold real estate unit, bearing all relevant charges, also the developer is committed to connect the real estate unit to the public sewage system or providing a suitable drainage instead.
These requirements and conditions reflect the Ministry's keenness and efforts to promote and organize off-plan sale of real estate units and to preserve the rights of consumers.