Delays in Project Completion

What it means: Developers may not deliver the property on the promised handover date.

Example: A project advertised for handover in 2024 gets delayed to 2026 without proper updates.

Why it’s a problem: Buyers who plan to rent or move in face financial strain, and holding costs increase with no immediate return.

Changes in Layout or Specifications

What it means: The final delivered unit differs from what was shown or promised in brochures.

Example: The advertised unit had a larger balcony and branded kitchen appliances, but the delivered version is smaller with generic fittings.

Why it’s a problem: Buyers feel misled and may face reduced property value or usability compared to expectations.

Lack of Transparency and Communication

What it means: Developers may not provide regular updates on construction progress or respond clearly to buyer queries.

Example: A buyer tries to confirm the status of permits or handover but gets vague or no responses.

Why it’s a problem: It causes uncertainty and erodes trust, making it hard for buyers to plan or feel secure in their investment.

Escrow Mismanagement or Payment Risks

What it means: Some developers may not use the escrow system properly or ask for payments outside the official process.

Example: A developer requests a direct bank transfer instead of an escrow-linked milestone payment.

Why it’s a problem: This increases the risk of fraud or misuse of funds, leaving the buyer exposed if the project stalls or fails.

Limited Legal Recourse for Buyers

What it means: The legal system may be slow or tilted in favor of developers, especially in cases of breach or delay.

Example: A buyer sues for a refund due to a two-year delay but faces high legal costs and a drawn-out process.

Why it’s a problem: Buyers may feel powerless to enforce their rights, leading to financial and emotional stress.

Poor Construction Quality

What it means: Developers may cut costs by using low-quality materials or unskilled labor.

Example: Cracks in walls, faulty plumbing, or substandard finishes appear soon after handover.

Why it’s a problem: It leads to high repair costs, lower resale value, and possible safety concerns for occupants.

Overpromising on Amenities

What it means: Marketing materials often showcase high-end amenities that are not delivered or are significantly downgraded.

Example: A promised rooftop pool and gym are either not built or replaced with basic versions.

Why it’s a problem: Buyers pay premium prices based on promised lifestyle features, but receive less than expected, affecting both value and satisfaction.

Hidden Fees and Charges

What it means: Buyers are sometimes surprised with unexpected costs not disclosed upfront.

Example: Extra fees for registration, maintenance, or service charges are revealed only during handover.

Why it’s a problem: This increases the total investment unexpectedly and causes budget issues for buyers.

Difficulty in Getting Mortgages for Off-Plan Units

What it means: Banks are cautious in lending for off-plan properties, especially from lesser-known developers.

Example: A buyer gets pre-approved for a mortgage, but the bank refuses to disburse funds due to developer risk.

Why it’s a problem: Buyers may have to come up with full payments themselves or risk losing the unit due to missed deadlines.

Limited Exit Options Before Handover

What it means: Reselling an off-plan property before completion is restricted or comes with penalties.

Example: A buyer tries to assign or flip the contract but faces high transfer fees or developer approval delays.

Why it’s a problem: Buyers needing liquidity or facing financial issues can’t easily exit, increasing exposure to market downturns.

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