Dubai, UAE

Terminating the SPA of an off-plan property when the project is almost completed

What is a probability to terminate an SPA with the developer in Dubai through the court if:

1. ACD was Q1 2017 + 12 m

2. Based on inspection of 02/2019, the project is complete over 93%

3. It is possible that the project may complete before or during the claim process but it is also possible that the project may be delayed further at least for months

4. According to the SPA, “the Seller shall not be considered to be in default or in breach of its obligations … to the extent that performance of such obligations is prevented … due to Third Party delays … or because of the time extension given to the Main Contractor by the Consultant Engineer .. for reason whatsoever”.

Although it is likely that the delay has been caused by the Seller or due to reasons within its control (e.g, delaying payments to the Contractor), how can the Claimant access such evidence and does it matter given points 2-4?

Sweta Singh

Aceptive Legal Consultants

Chat

Hire

Meet

3 Sep 2020, 10:04

Dear questioner,

We need to review the mutually signed SPA in order to assist you properly.

Kindly send us a copy so that we can review and help you in this regard.

If need be, kindly contact us by phone or email for further assistance.

3 Sep 2020, 11:16

Dear Mrs Singh,

Thank you for your reply.

Assuming that the SPA does not state that I can terminate and limits the developer’s liability by 2% referring to point 4 above, what is your view, please?

Thank you

3 Sep 2020, 11:27

As the handover is delayed, therefore you have a right to terminate the mutually signed SPA and ask for a full refund of all investments done by you, along with compensation for delay in handing over of the property.

3 Sep 2020, 12:43

Thank you.

Was this content helpful?

Fixed-fee services

3 • View all