By Ed Attwood
Property investors should accept revised offers from developers rather than hang on for original real estate projects to make progress, a leading local lawyer has said.“
My advice to them would be that if a developer is offering them revised payment terms or an alternative property in another development that’s in a more advanced stage of completion – take it,” Richard Bell, an associate with Clyde & Co, told Arabian Business.
Because you’ll either get a property, or if you don’t, you are in no worse a position than you are now.”
If investors rush straight to court, there is no guarantee of success and investors will incur heavy legal fees, Bell added. He also expressed his belief that if work on the development is still proceeding, the odds of winning a court case are against the investor.
“The purchaser also needs to bear in mind that if they are given what on its face is a reasonable settlement proposal and they reject it, that could count against them in any proceeding that they bring in court,” the Clyde & Co lawyer stated.
“The other thing they can do is contact the Land Department…it can be tough and frustrating to deal with the Land Department, but if you keep at it, something may be able to be done.”
But Bell also pointed out that the current market situation was difficult for both developers and investors equally. “I make no bones about it; it’s tough for purchasers, and it’s tough for both sides of the development project,” he said.
“But at the end of the day, there’s no easy solution; you have to make the best of a difficult situation. If you can possibly negotiate with developers, do so.”
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