Q: I have made a 20% down-payment against an off-plan property in 2017. The sale & purchase agreement does not include a "Termination/Refund" clause and the property is due for handover by the end of the month. The property value has dropped by 40% and I'm able to only get a mortgage for 80% of the current value. However, due to the current situation and the impact of COVID-19 financially, I'm not in a position to proceed with the remaining instalments. I have to forfeit the contract as the developer has not given me any options for deferral of payment and has declined the request for a delayed handover. Please advise if and how I can get a refund on the 20% amount that has already been paid upfront.

Q: 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!

Q: I purchased an apartment in 2017 with a completion date of Q4-2018. Till now, the construction is not complete. And based on the construction update, it will not complete in 2020. As per the agreement I already paid 50% of the amount and rest 50% is due on completion. As per the Default and Termination clause of the SPA, I sent the notice for termination on 5th Jan 2019. This clause clearly states that "If the seller has not served the completion notice within a period of 12 months from the anticipated completion date (unless the delay is caused by force majeure) and the purchaser has fulfilled all of the purchaser obligations under this agreement, the purchaser shall be entitled to send a written notice to the seller requiring the seller to complete the building works within 90 working days of receipt of the purchaser's written notice. That time has elapsed and now I have to send the second notice as the remedial period of 20 days is also coming to an end. Please advise on the plan forward.

Q: I had purchased a unit in an off-plan project in Dubai in 2018. I had paid 25% of the total amount. This property has been registered in DLD also on my name by the developer. I have not paid any further instalment because of my weak financial condition. On top of this, because of coronavirus spreading, I have lost my job as well. This project has also been delayed by one and a half year. Now the developer's people are pressuring me to pay the balance otherwise they will inform the DLD and cancel the unit and forfeit my money. Can you suggest the way so that I can get refund of my money? I am really worried because I am a middle-class person and in deep financial crisis.

Q: I have purchased an apartment in a master community project in Sharjah in Dec-2018 with an anticipated apartment completion date of 31-Dec-2020. The developer has announced, through a periodic masterplan construction newsletter, the construction contract award of my apartment phase on Aug-2020 with a new anticipated completion date by the end of 2021. On Nov-2020, the developer sent a Notification of Extension of Anticipated Completion Date E-mail to postpone the anticipated completion date from 31-Dec-2020 to 31-Dec-2021 due to the COVID-19 pandemic as a Force Majeure event referring to the Force Majeure Events and Foreign Delay Events Clause in the signed Initial Sale and Purchase Agreement. As per the initial anticipated completion date, the construction contract award should have been done prior COVID-19 pandemic to be ready for handover on Dec-2020, however, the developer has justified all the delays due to the COVID-19. The intent is to know if any compensation can be done due to such delays.

Q: Dear Sir/Madam, I wanted some legal advice regarding my property issue. I have purchased a quarter share of a hotel room investment in a project in Dubai Marina. I have paid about 31% of the total purchase price. I have signed all the paperwork and obtained the partial property deed. Due to the Coronavirus, I am unable to continue to make the payments required. Now the developers are saying that by Dubai Law, they are allowed to keep 25% of the total purchase price from the monies I have paid. I want to know if there is any case law or discretion that the developers have to consider in circumstances such as mine where I want to complete the transaction but I am unable to due to not having a job and financially being able to complete the transaction. I am trying to sell the interest but at present cannot find a buyer. Please let me know what my legal rights are if the developer does keep the full 25% of the purchase price, do I have any legal remedies? Thank you Z.

Q: Hi there, We are UK based investors, having purchased 4 off-plan properties in Dubai. Two are completed and ready for handover. For the other two, construction appears to have been paused for at least the last year. This last year we have not been able to maintain our instalments on all 4 properties, primarily because of COVID-19. We have now received termination notifications from DLD. We have tried to negotiate some solution with the developer but they seem unwilling to cooperate. We have also contacted the DLD to explain the circumstances and request an extension but haven't heard anything. What can we do?

Q: I bought 2 flats, off-plan, in Dubai. The developer completed the project 2 months late and now requesting the remaining balance. Due to the pandemic, I lost most of my savings and my income has significantly reduced, so I am unable to pay the balance. I requested to change my payment plan and the developer did but added 6% on the top of the total price. I am disappointed with such a decision considering I joined the project from the start, so should gain some loyalty. Whereas they are offering a 25% deposit + 4 years post-handover payment plan to new buyers now with no interest. I tried to sell the apartments but this didn’t go down well due to the current pandemic situation and the developer refused to help. I am left with no choice but to terminate both agreements. I would like legal advice on how to terminate the agreements as I have never done it before and if there is any chance to get any money back from the developer. Many thanks.

As the world is currently experiencing a major lockdown and suspension of almost all commercial and civil operations, the question arises in the novelty of Coronavirus outbreak on how serious it is to be dealt with as a Force Majeure.

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.

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.

This Resolution approves the Implementing Bylaw of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.