· Addis Fortune
Court Freezes Noah Flats as Buyers Open Second Front
Topics:DevelopersLaw and policy
Summary of the Addis Fortune report
Judges at the Federal High Court have frozen the sale or transfer of 27 apartments at Noah Victory Apartments for one month, giving a group of homebuyers time to prepare a lawsuit against Noah Real Estate Plc. The buyers had asked for two months, a period the judges called "too long." The buyers sought the freeze before filing suit, alleging Noah Real Estate had been showing the disputed units to prospective buyers and arranging advance sales.
Key points
- The Federal High Court barred the sale or transfer of 27 flats at Noah Victory Apartment for one month.
- The buyers say Noah Real Estate missed its 36-month delivery period and then asked for more money.
- The dispute centres on larger registered sizes that include common areas such as balconies, parking and corridors.
- Noah Real Estate calls the claims baseless and cites a 10 percent tolerance clause in its contracts.
Real.et analysis
Addis Fortune reports that the Federal High Court froze 27 apartments at Noah Victory Apartment, near Women's Square in the Aware area, for one month. The order gives a group of buyers time to prepare a lawsuit against Noah Real Estate, which already faces a separate suit from six other buyers.
What this means for buyers
The core of the dispute is unit size. The buyers say their contracts fixed the size and price of each flat. When the title deeds came, the registered sizes were larger, because shared areas such as balconies, parking, corridors and elevators were folded into each unit. The developer then asked for more money before handover. Noah calls the claims baseless. It says its contracts allow a 10 percent tolerance and that the larger figures come from the government's registration method.
This issue can affect any off-plan purchase in Addis Ababa. Before you sign, check these points:
- How the contract defines size. Ask whether the price covers only the private area of the flat or also a share of common space. Get the definition in writing.
- Tolerance clauses. Find out how much the size may change and who pays for the change. A clause that lets the price rise with size can cost you a large sum.
- Delivery dates and penalties. The buyers say Noah missed a 36-month build period and that they then waited another 36 months. Check what compensation the contract gives you for delay.
- Payment schedule. If you can, avoid paying the full price long before completion. Staged payments linked to visible progress give you more leverage.
The case also shows that a court freeze is a practical tool. Buyers who fear that a developer will resell their unit can ask a court to stop the transfer before they file a full suit.
What this means for the market
Disputes like this one may make buyers more careful with off-plan sales. Developers with clear contracts and a record of on-time delivery may gain an advantage.
Read our profile of Noah Real Estate and our guide to real estate developers in Ethiopia. Our guide on how to buy a house in Addis Ababa lists the documents to check before you pay.