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: Salam, Hope you are very well. I am writing this email to understand the current law for off-plan properties in Dubai. I started an agreement with a developer in Dubai in 2016 4th quarter. The developer promised to deliver the project by June 2019. Currently, the project is only 23% completed. When I saw the project is being delayed, my payments were delayed too I paid around 40% of the unit price. Now I received an email/letter from the developer on the final Legal Notice, or they would cancel my unit. Does the developer have such rights even though its a big delay from there end? If they cancel my unit, what % of my total paid money will I be refunded from them? I would appreciate your detailed and kind response in this matter, please. Thanks

Q: Does Dubai law have any regulation concerning the off-plan delay for one year? Can I cancel the contract?

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 I have cancelled the purchase of a property in Dubai and the developer has agreed with my decision. The developer committed in writing to refund the agreed settlement amount “within 90 days “. I have kept consistent follow-up records and everything in writing between the developer and me. However, 1 week before the 90 days expiry period (due to my constant and persistent follow up in writing) the developer has stated it will take another 90 days for them to refund me the monies, sighting COVID-19 as “ the “ reason. Am I able to enforce the email agreement between the developer and me to recover the agreed settlement within the 90 days and latest at the 90-day deadline? I look forward to hearing from you, I would also be pleased to engage on the tel with you if you feel this would be more useful. I currently reside in Kenya. Thanks. Regards, S.

Q: The handover date for my off-plan property was due on the 30th of April 2022 the developer has communicated to me that the handover date has now changed to April 2024. No reason was given. I have since contacted them stating that I do not agree with the change of dates and if they are unable to commit to the original date then our contract should be terminated. I have paid 63% and I want my money back. The agreement says if the vendor cannot deliver on time I have the right to claim an interest-free full refund. However, this clause excludes if this was due to an event of force majeure act by government authorities, God, labor disputes and failure of utilities, transportation of personnel or equipment; breach of contract by any sub-contractor, and any matter beyond the reasonable control of the vendor. To date, no reason has been given, and I feel 2 years are not justified by any force majeure event. Will it stand in court to get my money back and make them pay the legal costs?

Q: We have purchased an off-plan property and its handover was in the 2020 1st quarter. It has been delayed constantly and now the expected handover is Sept 2022. We need some advice on how to get compensation from the developer.

Q: Good evening, I purchased my off-plan property in 2017 and paid only 5% of the total value. After 6 months, I informed the developer via email that I no longer wish to continue with the purchase. However, on 16/2/2023, I received a notification from the Dubai Land Department stating that I must settle my outstanding payments within one month. My question to you is whether I am eligible to pay any late penalty fees, considering that the developer failed to complete the project on time. Additionally, on my SPA, the plot area was stated as 3509 sq. ft, but upon measuring it, I found that it was actually less than 2400 sq. ft. At the time of purchase, they charged an extra 200,000 AED, and are now counting late payment penalties at a rate of 1.5% per month. Given these circumstances, what should I do? Can you guide me? Also, how can I contact you in person? Waiting for your kind reply. Thank you!

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

The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.

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.