Q: I have purchased a property off-plan, which was due to complete Sept 2020, however, the project has been delayed and not even reached 10% completion. And now with the COVID-19 situation, the developer has decided to prioritize other projects and informed me the unit I purchased will be delayed as a minimum for 2 years. But to make good by me, they are offering me a unit in the sister development for the same price, which is one of the projects they are prioritizing to complete. But they are only offering it to me at the same square foot price as the other unit, and this unit is slightly smaller too. Also, this project is anticipated to complete q3 2021, which is 18 months later than what signed up for with the first unit. I want to understand what compensation I can claim as I feel they are not offering to be adequate compensation for the delay and nor doing be a deal on this unit. Please advise. Just to highlight the delays to the first project were before this COVID-19 issue.

Q: Hi, I purchased an off-plan property in Dubai that had an estimated completion date of August 31, 2020. I received an email that due to a delay, my completion date has been pushed forward to April 30, 2022. The email they sent for the delay did not say what was the reason for the delay. Since the developer has violated the SPA by delaying the project past 12 months of the completion date, can I request that the contract be cancelled and get what I have paid back? Do you believe that the developer could utilize Covid-19 as Force Majeure as a reason for not following the contract? Regards

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: 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.

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.