Investors in Dubai’s off-plan real estate market possess clearly defined legal protections against developer delays and contractual breaches, according to established UAE civil law and specific Dubai property regulations.
The contractual relationship between purchaser and developer is formalized through a Sale Purchase Agreement (SPA), which comprehensively outlines property specifications, purchase price, payment schedules, completion deadlines, compensation mechanisms for breaches, force majeure provisions, and governing jurisdiction. This agreement operates under Article 246(1) of the UAE Civil Transactions Law (Federal Law No. 5 of 1985), mandating that contracts be executed in good faith according to their stipulated terms.
When developers fail to meet handover obligations, purchasers benefit from a structured dispute resolution process. The primary recourse involves filing a formal complaint with the Dubai Land Department (DLD), which acts as an initial mediation body under Article 14 of Executive Council Resolution No. 6 of 2010. The DLD endeavors to preserve contractual relationships through conciliatory efforts and proposed solutions, with any mutually agreed settlement becoming legally binding upon departmental approval.
Should amicable resolution prove unattainable, Article 13 of Law No. 13 of 2008 empowers the DLD to investigate developer violations and refer substantiated cases to competent authorities for further action. Alternatively, purchasers may directly initiate civil proceedings in Dubai courts seeking financial compensation for delays, as permitted under Article 295 of the UAE Civil Transactions Law.
Developers retain the right to invoke force majeure defenses under Article 21 of Executive Council Resolution No. 6 of 2010, claiming unforeseeable circumstances prevented contractual fulfillment. This legal framework provides offshore investors with multiple avenues for redress while maintaining balance between purchaser protections and developer rights within Dubai’s dynamic property market.