As a purchaser of an apartment in Dubai from a private developer, it is essential to understand your rights and options in case of a delay in the handover of your property. In Dubai, the Sale Purchase Agreement (SPA) signed between the purchaser and the developer contains clauses regarding the completion date, compensation for breaches, and force majeure terms. According to Article 246 (1) of the UAE Civil Transactions Law, the contract should be implemented in good faith according to the provisions contained therein.
If there is a breach of any clauses in the SPA, the affected party may be entitled to compensation as specified in the agreement or decided by a court in Dubai. Article 295 of the Civil Transactions Law states that damages for breaches will consist of a money payment, but the judge may order other forms of compensation depending on the circumstances. Additionally, in case of disputes, the buyer can approach the Dubai Land Department (DLD) to settle the matter amicably, as per Executive Council Resolution No. 6 of 2010.
Furthermore, if the DLD finds that the developer has breached the SPA, it may refer the matter to competent authorities for further actions or decisions. Under Article 13 of Law No. 13 of 2008, the DLD can prepare a report on the violation and refer the case for investigation. However, developers may claim force majeure as a reason for not fulfilling their obligations related to property handover, according to Article 21 of the Executive Council Resolution.
Buyers also have the right to claim damages or lost profits caused by a developer’s actions. Article 292 of the Civil Transactions Law outlines that damages should cover the prejudice sustained and lost profit as a natural consequence of the prejudicial act. In case of delays in apartment handover, causing additional financial expenses such as renting another apartment, the buyer may file a complaint with the DLD or directly approach a court in Dubai for compensation, based on the provisions of the SPA.
It is advisable to seek independent legal advice from a legal practitioner in Dubai for further clarification on the legal options available in such situations. Applicable laws in this case include Federal Law No. (5) of 1985 On the Civil Transactions Law of the UAE, Article 13 of Law No. 13 of 2008 regulating the Interim Real Property Register in Dubai, and Executive Council Resolution No. 6 of 2010 on the Implementing Bylaw of Law No. 13 of 2008. For more information, individuals can reach out to legal professionals like Ashish Mehta, the Managing Partner of Ashish Mehta & Associates, who is qualified to practice law in Dubai, the UK, and India.
