Questions & Answers
Cancellation of a property purchase and refund for over-delay in handover
Hello
I am contacting you from London. I have purchased a property in Dubai in a project in 2005. We purchased two apartments and today we have not received anything yet.
This construction project is still going on and the developer has changed many times. Another company now runs the project, and whenever I contact them they say it's going to be ready in the next 3-months or 6-months.
It keeps postponing work are currently at standstill. I have contacted them then and the same they're waiting for more information from the Dubai authorities.
Every time there's a different story, and we get delayed. It's now been 16 to 17 years since we have invested in this and I would like to put a stop to this now, possibly get a refund and compensation.
Could you please help me by advising me what my situation can be?
Dear Questioner,
You can file a civil case for the termination of the Sale and Purchase Agreement and recovery of the amount invested in the property, in addition to the legal interests on that amount until the completion of payment.
Kindly send us a copy of the Sale and Purchase Agreements and all relevant documents on the subject matter at our email so that we can review the same and advise you on the next steps.
Thanks
Hello,
The first aspect of your matter is with regards to the new law that was introduced on December 15, 2020.
The new law replaces the previously existing law regarding the Judicial Committee to Liquidate the Real Estate Projects Cancelled in the Emirate of Dubai and Settle Their Related Rights.
The DLD is currently in the process of launching a platform on their website, specifically for cancelled or incomplete projects, on the back of the new law. The DLD is working on managing all the projects in accordance with the new law.
This may be the reason why your project has been delayed further. Specifically, because the developer mentions they are waiting for a response from the authorities, this is what they may be referring to.
On the other hand, since the project you invested in has an active and clear developer, you can request to terminate the contract.
Generally, in order to assess whether or not you will be able to obtain a refund for your investment, you will need to review your sale and purchase agreement, as that is what it ultimately depends on.
We have had several cases where properties have been delayed and the purchasers were able to get all their money back.
Similarly, there have been cases where the purchasers found out they were also entitled to interest for the delayed time.
However, this was identified through a thorough review of the specific terms of their contracts. Whether or not the Courts will terminate the SPA is at their discretion.
Should you require further tailored substantive legal advice or assistance with your matter, kindly send us an email.
Kind regards,
Ludmila
