The timely handover of the property is a regular source of difficulty for investors and builders in the real estate sector, say lawyers for business startup & legal services Dubai. This kind of argument frequently results in significant financial loss for investors. Legislators in the UAE, therefore, created rules to safeguard the rights of investors who choose to deal with buildings off-plan. The various legal possibilities for handover delays would, however, largely depend on the terms and conditions stated in the contract.

For instance, most legal advisors in Dubai will remind clients that if the contract’s force majeure clause—which absolves parties of responsibility for unavoidable events like catastrophes—is the primary cause of the delay, the buyer will not be entitled to cancel the agreement or make a delay compensation claim against the contractor or developer.

However, if the contractor or developer is shown to be the primary cause of the delay and has breached the contract by failing to fulfill its commitments, the buyer may pursue the following legal remedies:

Cancellation of the contract | Advise from Legal Advisors in Dubai 

Make a claim for damages for the delay (this must be expressly stipulated in the signed agreement between the parties and the purchaser must prove that the delay has caused substantial losses which is detrimental to the purchaser). According to UAE legislation, the buyer is entitled to reimbursement for the following expenses: 

(I) interest

(ii) deposit

(iii) legal and agent fees; and 

(iv) any other accrued sum that may be ascertained and shown.

If the parties to the contract have stipulated that alternative dispute resolution should apply, an arbitration case may be brought to enforce the aforementioned legal remedies. All parties involved in the disagreement must abide by the rulings made in any of the two routes of dispute resolution.

Investors may in some cases also contact the Real Estate Regulatory Authority to ask about postponed or abandoned projects before the committee if the project has been canceled by RERA. Therefore, any issue involving abandoned projects must be resolved by the Judicial Committee for Liquidation, and no halted projects may be the subject of arbitration or litigation in any other court. Investors are free to submit their claims to the Judicial Committee directly in this regard.

Therefore, it is crucial to review the terms and circumstances of the parties’ signed contract before bringing any legal action or requesting a settlement. Additionally, it is important to confirm that the property is DLD registered and RERA approved. Prior to filing a claim, doing your homework will substantially help the investor acquire the support they need and use the finest legal strategy to preserve their interests.

Legal advice and support from professionals will be essential if you are experiencing problems with property handover delays. We at MS Law have the best property lawyers in Dubai who can analyze and revisit the contract with you, offer you our legal opinion, and appropriately assist you in enforcing your legal rights and remedies under United Arab Emirates law. For more details and advice, get in touch with us.