Reading a Developer's Contract: 10 Clauses You Should Never Skip

Reading a Developer's Contract: 10 Clauses You Should Never Skip

The unit you're buying is only as good as the contract behind it. These are the clauses our legal team checks on every deal. A beautiful sales office and a friendly agent can't tell you what actually happens if the project is delayed two years or the finish quality doesn't match the model unit. The contract can — if you know where to look. The clauses that protect you Delivery date and delay penalty: the contract should state a specific handover date, not a vague 'within the project timeline,' plus a defined penalty (often a percentage of the unit value per month of delay) if the developer misses it. Unit specification schedule: finishes, brands, and fittings should be listed by name and grade, not described as 'high quality,' since that phrase is unenforceable. The clauses that protect your money Escrow or milestone-linked payments: your installments should be tied to construction progress and held in a regulated account, not paid straight into the developer's general operating funds. Resale and assignment rights: confirm you can sell or transfer the unit before handover, and note any transfer fee the developer charges — some contracts restrict resale entirely during the payment period. The clauses people skip and regret Area tolerance: most contracts allow a small variance (commonly 2-5%) between the sold and as-built area with a pro-rated price adjustment — check the percentage and the direction it's capped in. Force majeure definition: an overly broad force majeure clause can let a developer claim delays are excused for reasons that shouldn't qualify, so read exactly what's covered. None of these clauses are exotic — they're standard in any well-run development. If a developer resists including them or hides behind boilerplate language, that response tells you as much as the contract itself.

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https://www.aqar-factory.com/blog/developer-contract-clauses-checklist