Q: Background: 1. SPA was signed in March 2014. Original delivery Date Jan 2017. SPA permits 1yr delay. 2. I have made 35% on account payment. 65% was due on handover. 3. I completed snagging Q3 2019 and de-snagging last week (Post Jan 29, 2020) 4. Received handover letter in Dec last week 2019 to settle 65% by Jan 29, 2020. 4. I have been requesting/discussing since early Jan 2020 to provide me a discount/compensation for a 2-year delay and settle the net payment. Discussions are still in progress with no end date in sight. My Questions are: A. How to proceed? (i) Should I make 65% payment 1st and then seek delay compensation? (ii) Make on account payment after netting off my expected discount amount? (iii) Continue to wait for the developer to provide me the discount amount? (iv) Explore cancellation of the contract and seek a refund of 35% along with interest? Thanks!

Q: I purchased an apartment in August 2007 which was due for handover on October 31, 2009. The purchase price was AED 1.42 million. The payment term was 50% in 7 instalments and 50% on project completion. I paid 50% as per the agreement, The developer informed me sometime in 2008 that the project was delayed due to force majeure as the substation in Business Bay was not complete. Now it is 2020 and the project is still not completed. The substation in Business Bay had been completed years ago. I would like to know if I am entitled to compensation for the delay or can I cancel the purchase in its entirety and get my money back along with interest? Please advise me on my options and what steps should I take forward.

Q: I would like to seek your understanding of this clause in my SPA. I have an off-plan unit and the last completion date (when signed) was 29 Feb 2019. However, they informed that the new completion date will be April 2020. In March 2020, they informed me the handover is delayed till Nov 2020. ''The vendor shall prior to the Estimated completion date notify the purchaser of the designated completion date of the unit. (The 'completion date') The vendor may, at its sole discretion, and on notice to the purchaser given not less than 1 month before the completion date, extend the completion date to such other date as advised by the vendor from time to time provided that the total period of such extensions of the completion date shall not exceed 12 months from the first designated completion date, except in the case of force majeure.'' Please elaborate on this and advise if I am eligible for compensation after handover? Or even to get my 60% payment back from them. Thank you!

Q: We are a contracting company based in Dubai. We entered into a contract with our client two years ago, the client released the advance payment at the start. They have caused delays at the site due to which we weren't able to proceed with the work for this duration. We were recently invoiced charges for the delay but they aren't ready and are now trying to terminate us from the contract. They are asking us to repay the advance payment made in 2018 April. Our contracts do not carry any clauses for the security of advances or liquidated damages. Can they still claim back the advance even though we were not the ones responsible for causing the delays? What are the options we have to move forward with this situation?

Q: Greetings, The property was supposed to be delivered in June 2018 and is still not delivered. If they actually deliver by June 2021, what are my rights to the compensation? At the time of purchase, it was a 50-50 payment plan. I paid the 50% at the time of purchase and in September 2019 they came back to me with an offer of a discount of 16% in the final settlement amount. I accepted and paid the remaining amount as well. Therefore as of September 2019, I have paid 100% of the property value. With all the financial challenges the delay has brought me into, I want to know what compensation is my right as I am assuming they will not be offering anything or if they do they might offer some waiver in service charges (for 1 or 2 years). And I am worried if they give this waiver of service charges to everyone, will the property be actually taken care of or no?

An interview-format article covering the topic of defaulting on commercial lease in the UAE and related procedures. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW. In this article, Ludmila discusses what one should do if the tenant becomes unresponsive.

The provisions of this Law apply to real property leased out in the Emirate of Dubai, including vacant and agricultural lands, but excluding hotel establishments and real property provided by natural or legal persons as accommodation to their employees at no charge.

Provisions of this Law supersede articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai. 

This Decree establishes a specialised judicial system to hear rent disputes and develops the procedure for determination of such disputes through an expeditious and simple process for the purpose of realising social and economic stability for all persons involved with the real property rental and other related sectors.