Questions & Answers
Questions & Answers
6 available 6 • View allFailing to pay off-plan property instalments and terminating SPA
3
Q: I have booked a unit under construction with a developer 3 years ago. I paid 30% during construction and 70% was due since Jan this year.
When I booked the unit, my plan was to get financing from a bank to cover 70% payment because I was working with a semi-government company.
But I lost my job and my credit score went low due to defaulting on financing payments and I could not get financing from the bank.
I have contacted the developer asking them for refund or change of payment plan but they give me instalment plan for 5 years and increased the price which I cannot go for.
I am not in a stable situation with my current job and the company gave me 3 months unpaid leave because of Coronavirus situation.
The developer completed 100% construction and they sent me a building completion certificate in Jan this year and now they are calculating 3% late payment fee every month as per SPA.
Now I do not have any source of income. Can I get refund from developer so I can cover my expenses?

May 5, 2020
2154
Defaulting on property installments and refund from the developer
27
Q: Refund from Escrow Account
I have purchased a unit from Danube Properties. According to them, the project handover will be in 2024 or 2025.
Due to some unexpected financial crisis, I can’t pay the instalments, due to which I have some penalty amount as well.
My question is if I cancel the unit, will I get the refund of my monthly payments since the account to which I am transferring the amount is an escrow account, not the direct Danube account?
Thanks

Jan 10, 2019
7041
Delayed property projects and the right to exit the SPA
3
Q: Delay in property completion and need for cancellation and exit from SPA
Hello All,
I booked for an off-plan property in Downtown Dubai by a leading builder. The completion date was June 2018. However, the property was not completed in June of 2018.
I received a note in April 2018 citing the new completion date would be Dec 2019.
Since the completion date is well over the stipulated grace period in SPA, I had requested the builder for a friendly settlement by cancelling the SPA and refunding the money as per the default by vendor clauses in the SPA.
This has been refuted by the builder and repeatedly says that they cannot cancel the SPA and neither can they refund the money. What are the options available?

Mar 21, 2019
1845
Termination of property SPA after defaulting on instalments
2
Q: Hello,
I am a Canadian citizen, currently living in Canada, who was previously working in Dubai.
I own two properties that have both substantially depreciated from when I bought them, and unfortunately, the money I make here comes nowhere near the amount I need to pay back in Dubai per month.
I have debt collectors threatening my family and me, and I want to make it all go away. I am asking if there are any steps I can take to solve this issue, such as declaring bankruptcy.
Honestly, I cannot afford much and just want to live in peace. I am willing to give up both my properties, take in loss so far and just start fresh.
I apologize for not giving any names, and I have been on the blunt end of many scammers in the UAE and people threatening my family, so I would rather keep things anonymous for a while till I feel safe.

Jul 26, 2020
610
Terminating SPA and seeking compensation for delaying handover of property

0
Q: What are the rights and remedies for the investor if the real estate developer has proven to have acted in bad faith?
Assuming that there is evidence that the developer has consistently provided false/misleading information, failed to provide material information, and acted dishonestly, does this breach of law create any rights for the investor in addition to the rights arising from breach of contract?
Thank you


Feb 16, 2021
395
Can I terminate the SPA of the off-plan property for delaying the handover two years?


2
Q: The handover date for my off-plan property was due on the 30th of April 2022 the developer has communicated to me that the handover date has now changed to April 2024.
No reason was given. I have since contacted them stating that I do not agree with the change of dates and if they are unable to commit to the original date then our contract should be terminated.
I have paid 63% and I want my money back. The agreement says if the vendor cannot deliver on time I have the right to claim an interest-free full refund.
However, this clause excludes if this was due to an event of force majeure act by government authorities, God, labor disputes and failure of utilities, transportation of personnel or equipment; breach of contract by any sub-contractor, and any matter beyond the reasonable control of the vendor.
To date, no reason has been given, and I feel 2 years are not justified by any force majeure event. Will it stand in court to get my money back and make them pay the legal costs?



Apr 12, 2022
292
Laws & Regulations
4 available 4 • View allLaw No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 1
This Law establishes interim property register in which sale contracts, off-plan sales, and other off-plan legal dispositions of real property are registered prior to inclusion in the property register maintained by Dubai Land Department.
Aug 14, 2008
4821
Law No. (9) of 2009 Amending Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 2
The provisions of this Law supersede articles (2) and (11) of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.
Apr 12, 2009
3112
Executive Council Resolution No. (6) of 2010 Approving the Implementing Bylaw of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 3
This Resolution approves the Implementing Bylaw of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.
Feb 14, 2010
5120
Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.
Dec 15, 1985
148347

Other answers by
109 109 answers •
View allCancellation of SPA for delay in delivery and defaulting on payments 0
Hi
I bought an off-plan property from a developer in downtown during the peak time. My payment plan was based on construction with completion being Dec 2019. I have paid more than 50%.
I requested the developer to readjust my payment plan as the project is delayed. They moved on payment forward and sneakingly changed completion date to Aug 2021 in the document. The SPA still says Dec 2019.
Now I'm struggling to pay the next payment due to COVID-19 and project is completed 56% as par Dubai land department and 60% as per the developer. The developer is asking for payment and calling me every day.
My question is can I still use the delay in the project as a clause to cancel my unit?
Can I cancel my apartment and how much can the developer deduct?
After selling me, the developer started offering customers post-handover payment plans for 4 years, which is very unfair as even if I complete my payment, no one will buy from me as the developer is selling something with 4 years post-handover.
Can legal help be provided in this regard?
Jun 7, 2020
883
Easy way to know whether a job offer is real or scam 0
I am a health professional in Canada.
Years back, I posted my CV to work in the middle east on a job site in the gulf. Last week, I got 3 emails claiming from a general hospital in Abu Dhabi, a hospital Dubai and another medicare hospital in Dubai for online recruitment.
they showed interest in my CV. All emails were from free accounts (gmail.com address). I chose then to forward an email to the concerned HR department of the concerned hospitals.
I forwarded one email to the official email of one of the hospitals (as given on the hospital site). They replied and said, yes, the email is legitimate and you can apply with confidence.
Now I got an offer letter from Dubai hospital with handsome salary offer but from a Gmail address. They're asking me to start position in one month only and asking to contact a travel agency based in Dubai.
Is it a scam or true? I have forwarded the email to the HR department of the hospital to determine authenticity.
Jun 7, 2020
14629
Employee rights in case of changing an unlimited contract to a limited contract 0
Hi,
What is the law if an employer wants to change a contract from an unlimited to a limited contract?
Is the employer liable to pay the 3 months arbitrary dismissal (if valid) + other monies owed prior to changing the current unlimited contract to a limited contract?
Jun 7, 2020
4879
Terminating the SPA and claiming refund for changing specifications 0
Can a developer change the layout of the building as shown at the launch event and part of all brochures/online advertisements/model under the pretext that the same is not included in the SPA?
For the launch, we got convinced with the building design and layout but at delivery, it’s changed without prior intimation.
Can I make a legal case or can they take the guise that it’s not part of the SPA?
Can I get a refund for the 30% advance payment and refuse possession of the unit?
Jun 8, 2020
700
Inability to continue paying the installments of a property because of COVID-19 0
Hi sir,
I live in the UK. I am an investor and a broker for a property development company. One of my customers bought an off-plan property from it i.e just Cavalli Villa 2 years ago. 33% was completed and handover is due in 2021.
My client paid part of the deposit around AED 390000 (£80000) and she has been paying to the project for the last two years until early this year when COVID- 19 hit the UK. Since then, she has been ill and lost her job and, therefore, she is unable to pay.
My customer received a letter from the company saying that if the outstanding amount is not paid within 30 days, then they will take her to court. They say that they would cancel her plot and she will lose all MONEY paid so far.
My client needs payment delay until her situation improves but this request has been declined. The money secured under the ESCROW account. Can the developer have the power to take money from the escrow account?
What is her right under Dubai law? Can she do anything to avoid court order? The UK is in lockdown at the moment with no proper or normal banking functions.
Thank you!
Jun 9, 2020
1512
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