Dubai Career Diary

Purchasing off-plan property in the UAE can be an attractive option, but construction delays can turn this investment into a drawn-out ordeal. Fortunately, the UAE’s legal system has safeguards in place to protect buyers’ rights.

Buyers’ Rights for Off-Plan Handover Delays in UAE

Standard clauses in Sale and Purchase Agreements (SPAs) empower buyers to terminate the agreement if the developer fails to fulfill their obligations. The Completion and Passing of Risk Clause outlines the developer’s anticipated completion date, while the Cancellation of the SPA Clause allows buyers to cancel the agreement if the property is not completed beyond the extension period.

Off-Plan Project Completion Stages and Terms

Real estate transactions in the UAE are governed by regulations that vary by emirate. In Dubai, a well-defined legal framework, including Law No. 8 of 2007 (Escrow Accounts), Law No. 13 of 2008 (Interim Real Property Register), and Executive Council Resolution No. 6 of 2010, offers significant buyer protection.

Dubai-Specific Regulations for Off-Plan Handover Delays

The Real Estate Regulatory Agency (RERA) oversees the real estate sector, ensuring transparency and accountability. Law No. 13 of 2008 mandates registering off-plan property sales with the Dubai Land Department (DLD) for buyer security. The escrow account protects buyers’ rights, including project completion or refunds.

Due Diligence for Off-Plan Buyers

Before committing to an off-plan property investment, buyers should verify the project’s registration with RERA and confirm the existence and details of the escrow account. They should also check the developer’s registration and permits, consult with a legal practitioner to understand the terms of the SPA, and consider professional legal assistance for drafting, negotiating, and performing due diligence.

By understanding their legal rights and taking the necessary precautions, off-plan property buyers in the UAE can navigate the complexities of real estate transactions with confidence.