Questions & Answers
How to cancel an off-plan property contract and recover the amount paid?
I have paid about 15% of installments to an off-plan project. However, due to Covid-19, I am unable to keep up with repayments at the time being.
I am also concerned that it has been almost 2 years since I signed the contract and no work has started on the project, it seems no progress.
The handover was scheduled to be in 2021 but now delayed to 2022. How could I cancel without losing my 15% paid?
And if I continue to pay, but I am not happy with being delayed and never starting work, what should be done?
Dear Questioner,
I assume that you have bought an off-plan property in Dubai that was supposed to be ready for handover in 2021 but delayed till 2022.
Please note that a developer may delay the project for a period of 1 year as per the terms of the agreement and for 1 year with special approval from the Dubai Land Department.
In circumstances where no work has been started by the developer in the period of two years, the buyer may have the right to claim back the full amount paid against the property along with legal interest.
Whereby the developer fails to perform his obligation as per the agreed terms of the SPA or Art 246 (1) of UAE Civil Code, then the purchaser has two options:
- To terminate the agreement;
- To claim compensation for such delay.
Please share the SPA, payment receipts, and emails if any that you have sent to the developer via email or WhatsApp.
Best Regards,
Jassim Ali AlHaddad Lawyers and Legal Consultants
