Delayed Off-Plan Projects in Dubai? Know Your Rights as a Buyer Now!

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Legal Protection Under the SPA

Purchasers and developers are bound by a Sale Purchase Agreement (SPA), which governs terms such as the purchase price, completion date, and compensation for breaches. According to Article 246 (1) of the UAE Civil Transactions Law, all contracts must be implemented in good faith. If any SPA clause is breached, the affected party may claim compensation either as per the agreement or via court judgment under Article 295 of the law.

Resolution Through Dubai Land Department (DLD)

In case of disputes, purchasers can approach the Dubai Land Department (DLD) for mediation, as outlined in Article 14 of the Executive Council Resolution No. 6 of 2010. The DLD aims to preserve contractual relationships and may document amicable settlements, making them legally binding. If breaches by the developer are proven, the DLD may escalate the matter to competent authorities for further investigation (Article 13, Law No. 13 of 2008).

Force Majeure Clauses

Developers may cite force majeure—events beyond their control—to justify delays. This defense is recognized under Article 21 of Executive Council Resolution No. 6 of 2010, but it must be validated by a competent court.

Steps for Buyers

Buyers can either file a complaint with the DLD or directly approach a civil court for compensation. The court's decision will hinge on SPA provisions and the circumstances surrounding the delay.

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Source: https://www.khaleejtimes.com/business/realty/dubai-what-are-the-property-buyers-rights-in-case-of-delayed-off-plan-project-handover