Questions & Answers
Questions & Answers
4 available 4 • View allCancellation of an off-plan property contract due to delivery delay

2
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


May 11, 2020
1512
Refund of an off-plan property payments for delay in delivery 
1
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

Apr 3, 2019
1712
Termination of property SPA and claiming refund for handover delay



2
Q: I purchased an off-plan property studio in Mar' 2018 from a well-reputed builder in Dubai. The anticipated handover date was March' 2020.
In Aug 2019, I received notice that there is a fire incident at the site. Same month Aug' 2019 I have cross-checked the project status on the Dubai Land Department website which shows only 23% of work has been completed.
It was clearly understood that the project was running late & they were never in a position to complete on-time March' 2020 even if the fire incident would not have happened.
In the month of handover Mar' 2020, we have received that due to force majeure the handover is delayed & the remaining monthly instalments are paused & will be taken on completion, paid 50% till now.
As I understand from my contract, delivery can be pushed by up to 12 months, however, there is no mention of actual delay that can be taken on a note of force majeure.
What are my options with the developer? My preference would be to terminate the contract and get my money back.




Aug 27, 2020
456
In case of property handover delay, on which basis is it recommended to file a compensation case?


0
Q: Hello.
As per your practice, which option has a higher success rate in court cases related to apartment handover delay:
- 1. Compensation based on the RERA index (loss of income from leasing an apartment), or
- 2. Compensation based on actual rent you paid while waiting for your apartment to be handed over?
Option 1 has a higher compensation amount but have doubts if it looks strong as proof.



Oct 27, 2023
85
Laws & Regulations
2 available 2 • View allExecutive Council Resolution No. (6) of 2010 Approving the Implementing Bylaw of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 3
This Resolution approves the Implementing Bylaw of Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai.
Feb 14, 2010
5124
Law No. (13) of 2008 Regulating the Interim Property Register in the Emirate of Dubai 1
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.
Aug 14, 2008
4826

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