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?

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: Seeking cancellation for the delaying property delivery, as developers are not being reasonable. I purchased an off-plan property in Dubai which was due for handover in June 2018 but still incomplete as of May 2020 (approx. 58%). 80% has been paid from a purchase price of 1.97 million, plus 4% DLD fees. After pleading with developers for assistance, I recently got offered 2 x 999,999 AED, properties from the Developer (not ready till first quarter 2021 apparently), plus DLD fees as they would be classed as new sales. I wish to cancel the purchase. Do I get additional rights for a 2-year delay and being under 60% completion? Can I use force majeure (I'm on 75% wage reduction till September due to COVID-19)? Has a law come into play to have additional compensation whilst renting during the delay? (I was advised on June 2019 by the SLC that there were discussions at DLD but nothing official). Can you claim the 4% DLD fees back? Thanks in advance

Q: Hello, I purchased an off-plan apartment in Aug 2017 from a developer in Dubai. The payment plan is 50% prior to handover, 50% on handover. The property has been registered with Oqood, 30% have been paid to date as per installment schedule. The anticipated handover date was supposed to be October 2019. The developer extended the handover date till October 2020 as per the 12-month buffer they have under contract. They have claimed that the delay is due to their subcontractor going bust, so they have had to kick them out and replace them with a new one. As of Jan 2020, work has not started again on the project. My questions are: 1- Given the progress rate to date (30%), it is unlikely that they will be able to complete it on time. Can I take them to court now for an expected breach of contract? 2- Can they claim that their initial subcontractor going bust is a Force Majeure? Noting that they have never officially communicated this information to their customers (this was only mentioned verbally during a call).

Q: Hello, I would like to ask a question about real estate. My husband and I recently lost our jobs because of COVID-19. We invested in an apartment for more than 2 years ago. This apartment was supposed to be completed last year, but it is not even on 50% at this moment. We don't have visa sponsor anymore and we are unable to continue paying for that apartment. We will have to leave the UAE soon. What are our options for this situation? Can we ask for the return of our investment? Thank you very much for your help.

Q: Hi, The ACD mentioned in my SPA is October 2019, the developer further delayed the project to Feb 2020 and later again delayed to September 2020. In August the developer delayed the project citing force majeure clause mentioned and said delayed due to force majeure and delayed it to December 2020 The clause mentioned in the SPA says either party has to inform about the force majeure within 30 days of the force majeure but developer informed only in August. Can I claim compensation from the developer? Legally, they are allowed to delay up to 12 months but can I claim compensation from October 2020 till date? The building completion certificate has now been issued.

Q: Hello, We purchased an off-plan property in 2017. The delivery date is Q4 2018. SPA includes a 1-year extension after this date (which would lead to Q4 2019 completion date). To this date, we have received no communication about a new completion date. It keeps getting extended and extended. The online portal says that the delivery is in May 2021. As this seems to be in breach of the contract signed, we would like to know the following: 1. Can we terminate the contract and recover our payments (40% has been made so far, and 60% due at the handover)? 2. The SPA has a clause of Force Majeure in it, but it states that: should an event of Force Majeure occur that delays the delivery, the seller must notify, as soon as practicable, the purchaser and communicate a new anticipated completion date - no such communication has taken place. Can the seller use the COVID 19 pandemic as an event of Force Majeure (even though COVID-19 took place months after the extended completion date expired)? Thank you for your advice!

Q: I have 3 hotel apartments with a Dubai developer which I have paid fully. They were supposed to deliver in December 2019, they guaranteed a 10% ROI amount [return on the investment] paid for the properties. May 2021 is fast approaching when I would be due for ROI payment from the developer, however, they are now asking for VAT payment with immense trickery calls... etc., and now stating they will not pay any benefits (ROI) unless the VAT payment is made. Note that they have not provided any current dated VAT invoices nor any VAT invoice at the point of sale and they have not completed or handed over the property. The SPA states that I shall pay VAT however puts no dates or periods at all specifying the date of VAT payment. If they do not provide me the appropriate VAT current dated invoices and because of that, I do not make the payment, do they have the right not to pay me my contracted ROI on the dates specified on the SPA (May 2021)? In case they do not pay, do I have the right to cancellation and compensation of SPA?

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.

An interview-format article covering the topic of force majeure in the UAE, in light of COVID-19. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

An interview-format article covering the topic of COVID-19 in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.