What Happens If a Developer Delays Your Off-Plan Property in Dubai?
Monday, 30 June 2025
Learn what legal steps buyers can take if their off-plan property in Dubai is delayed by the developer. Understand your rights under the UAE law, SPA contract terms, and how the Dubai Land Department can help resolve disputes.
Key Highlights:
- SPA Clauses Govern Buyer-Developer Relationship: The Sales and Purchase Agreement (SPA) includes terms on price, completion date, force majeure, and compensation, and is enforceable in good faith under UAE Civil Law Article 246(1).
- Legal Compensation for Breach: If the developer breaches the SPA, the buyer may be entitled to monetary compensation or restoration, as per Article 295 of UAE Civil Transactions Law.
- Dubai Land Department (DLD) Can Mediate: Under Executive Council Resolution No. 6 of 2010, the DLD can facilitate an amicable settlement between developer and purchaser, which becomes legally binding once approved.
- DLD Can Escalate Serious Breaches: If the DLD finds the developer in violation, it may refer the case to relevant authorities for further investigation under Article 13 of Law No. 13 of 2008.
- Force Majeure Clauses: Developers may defend delays citing uncontrollable circumstances (force majeure), as permitted by Article 21 of Executive Council Resolution No. 6 of 2010.
- Legal Options for Buyers: Buyers may file a complaint with DLD first or directly initiate a civil case in Dubai courts to claim damages based on SPA terms and applicable laws.
