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Dubai, UAE

Real estate claim with the main and alternative positions in one claim

I have a case whereas the developer is almost 3 years late with the handover. The last status of project completion is 93.51% as of Feb 2019.

It is uncertain when the developer will be able to handover, and it is possible that this may happen during the litigation.

The Reservation Agreement refers to the exclusive jurisdiction of Dubai Courts whereas the SPA refers to the laws of the UAE and of Dubai being the governing law but is silent about the forum for dispute resolution. I presume that Dubai Courts would have the jurisdiction.

I am concerned that the court may refuse the annulment, in particular, if the developer will become ready to handover before the judgement.

Can I ask the court for annulment as the main position and for compensation for breach of contract as the alternative one, in case the court does not support the annulment?

Is it a good practice in Dubai to include two positions in one claim?

Thank you

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Colin Biggers & Paisley Lawyers (Middle East)
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9 Feb 2021, 06:15

Dear Questioner,

Yes, you can claim both compensation and refund of the money invested in the property along with the legal interest.

Further, we need to check the current status of completion of the project and review the terms of the Sale and Purchase Agreement before we give you appropriate legal advice.

Kindly send us a copy of the Sale and Purchase Agreement at so that we can review the same and guide you with the next steps.

Thanks

Samira Alzarooni Advocates and Legal Consultants
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9 Feb 2021, 06:34

Kindly visit our office for a proper discussion with a representative on this along with the SPA and updates on where the property has reached with regards to the completion.

Although compensation can be sought for delay depending on what has been agreed between two parties.

For further information reach us on the telephone.

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Elnaggar & Partners
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9 Feb 2021, 08:29

Dear Questioner,

We have to review the Sale and Purchase agreement to see if would be possible for you to exit the transaction, at this stage.

We had cases when the buyer could exit the agreement even if the project completion was more than 70%.

However, we have to review the exit clause mentioned in the Sale and Purchase agreement.

Please feel free to approach me directly at our email.

Best Regards,

Raluca Gatina.

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Al Safar & Partners Advocates & Legal Consultants
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25 Feb 2021, 07:05

Dear Client,

Good day!

Yes, it is possible for us to have 2 claims. You can ask for specific performance for one particular matter and you can ask for compensation also.

For further assistance, please feel free to contact us on our phone or send an email.

Thank you.

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