<The General Real Estate Authority (GRA) has committed real estate developers to a number of steps to correct the course of their projects that have not achieved the completion rates stipulated in the timetable, as the draft “Technical Guide to Address Stalled Real Estate Projects and <a style="color: #800000;" href="https://istitlaa.ncc.gov.", published on a survey platform, contains comprehensive measures for each case, and invited interested parties to submit their feedback from August 4-19, 2024, noting that The guide is for projects covered by the provisions of the off-plan real estate sales and leasing system.

Regarding the liquidation of an off-plan project, the guide indicated that the liquidation is done by mutual consent when one of the following cases is realized:

• If the Authority deems the application of available default treatment methods to be futile.
• If the project is affected by government decisions related to suspensions.
• Change of land use of the project.

The guide described stalled projects as those that were not completed within the specified period, including the additional period granted to the developer, or in which the implementation work was suspended for more than 180 days at any stage of the projects, and stalled projects were divided into two parts:

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Technical default: If the project is not completed within the specified period, including additional periods granted to the developer for technical, construction, or administrative reasons.

Technical default:

Financial default: If the project is not completed within the specified period, including additional periods granted to the developer due to insufficient cash flow, poor marketing, or lack of funding sources.

The guide defines financial default as:

Financial default. The guide identifies a number of key tools to address delays and defaults, as follows:

• Appoint a qualified person to manage the relationship with the developer to address the default of the real estate project.
• Checking and following up on the work of the project parties.
• Disburse funds from the real estate project escrow account, if necessary to correct the course of the project.
• Requiring the developer to replace those responsible for the failure of the real estate project.
• Replacing a replacement developer.
• Return the amounts paid for the real estate project.