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The effect of changing the original SPA many times

Based on Dubai's strong reputation, we invested and now own a couple of off-plan properties in the UAE.

(1) Over the years, the master developer has changed the SPA agreement 3 times - how does this affect the original SPA which many owners still hold?

(2) The original SPA does not allow for "sharing or staff accommodation or AirBnB units within the development yet the developer allows this (claiming this is a government directive). Is this legal ie to breach the SPA terms?

(3) As there is no RERA or any property-governing body in this Emirate - what department can be approached to resolve this?

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Colin Biggers & Paisley Lawyers (Middle East)
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8 Jun 2021, 13:34

Dear questioner,

1. Have you signed the SPA with the developer or the master developer?

As far as amending the SPA is concerned, it is possible, but if you haven't agreed to it in writing or signed the amended SPA, it is not binding on you.

2.It is not legal to breach the terms of the SPA.

3.Every Emirate has a real estate governing body.

We need more details to provide you with appropriate legal advice.

You can contact us via phone to discuss this in detail.

Regards,

8 Jun 2021, 14:15

1) SPA is signed by the master developer who has formed an internal company to act as the property management team.

This is unprofessional, unethical, and an unhealthy situation. Annual audit reports are incomplete and financials are not being shared, i.e relating to the community spending.

2) RAK does not? I need to better understand our rights before sharing documents with lawyers and rocking the boat.

9 Jun 2021, 05:44

Dear questioner,

We cannot give you appropriate legal advice without knowing the entire facts and checking the documents.

If you need to discuss this further, you can contact us via phone.

Regards,

MIO Law Firm (Abu Baker Salem Advocates & Legal Consultants)
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8 Jun 2021, 14:24

As per your query, please note that the answers are as follows:

1. As the master developer changed the agreement, so the last agreement supersedes the earlier one, however, you have to look at which clauses have been changed and where the amendment has been made.

The clauses which were changed as per the last agreement will prevail over the original.

2. Maybe the developer has amended the clause as per the last agreement since due to COVID-19, the market was down.

3. There is RERA in Dubai and every emirate has its own body. You may complain to RERA and other land departments.

Kindly contact us via phone or email for further assistance.

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