Off plan Property Disputes in Dubai

1
Off plan Property Disputes in Dubai

• HHS Lawyers and Legal Consultants

2
Amicable settlement for off plan Disputes

• Investors and developers can amicably settle the
  disputes in case of arrears or any other breach
  of contract. The existence of such settlement can
  give relieve some of the financial pressures by
  offering an extended grace period to pay the
  arrears while ensuring the investor will still be
  able to purchase the property.

3
Arbitration

• Investors opt for arbitration for off plan
  disputes in the matters that include
• Claiming liquidated damages.
• Cancellation of contract for delay in handing
  over the property.
• Delay in starting a project
• Public property in dispute cannot be referred to
  arbitration, in such matters courts continue to
  have the jurisdiction, even if there is an
  arbitration agreement between the parties.

4
Termination for off-plan sales contractsCancella
tion by Developer

• Breach by Investor
• The law stated that in the event of breach by the
  buyer, the developer must notify the Dubai Land
  Department.
• If the developer and buyer reached an agreement,
  it must be included in the purchase contract and
  signed by both parties.
• If the buyer is not able to fulfil contractual
  duties or a settlement cannot be reached, the
  Department may issue an official document stating
  that the developer has fulfilled legal
  obligations, stating the percentage of completion
  of the property.
• A developer may be removed from the development
  register if it fails to commence construction
  within six months of the date on which it has
  received approval to sell off-plan units.

5
Termination for off-plan sales contracts

•  Other options for Cancellation of the Contract
• Developer have different options to cancel the
  contracts and seek remedy depending on the
  percentage of work completed as listed by Real
  Estate Regulatory Authority
• Developer can Retain all the sums paid by the
  investor, request the investor to pay the
  remaining sums and continue with the development
  of the project.
• A developer can request the Dubai Land Department
  to auction the property to collect any
  outstanding balance.
• The developer can retain a certain percentage of
  the off-plan sale agreement price and return any
  excess amount to the investor as mentioned in the
  law.
• The developer may void the sale contract solely
  if the developer did not initiate his work and
  deduct the amount prescribed as per law.

6
Cancellation by Investor

• Breach by the developer
• The law also sets out clear guidelines for the
  Dubai Municipal Authority to follow in dealing
  with developers when there are delays in meeting
  project targets, which is to ensure that
  investors rights are protected and legal
  proceedings are not delayed.
• where there has been a breach of the contract by
  the developer, the investor can terminate the
  off-plan sale contract. The law sets out the
  consequences of delays in starting construction
  of the project or failing to complete the
  construction.
• In these circumstances, the Dubai Municipal
  Authority may be entitled to cancel the project
  and distribute the amount kept in the escrow
  account in accordance with the priorities set out
  in the law.
• Under the new law, developers will be prohibited
  from collecting registration fees from investors.
  And developers will be allowed to charge
  administrative fees. which are approved by the
  Dubai Municipal Authority.

7
Rera cancels project

• According to the new Law no 19 0f 2017, if the
  project is cancelled by a resolution from Rera.
  The developer must refund all payments made by
  the buyer, concerning Escrow Accounts for Real
  Estate Development in Dubai.
• Property Dispute Lawyers Dubai
• HHS property lawyers in Dubai have an experience
  of more than 35 years in this particular field
  and have been dealing with such cases in quite an
  expert way. Hand over your matter to real estate
  lawyers in Dubai. Lawyers in Dubai will make sure
  to carry out all the steps in a proper legal
  manner.
• Source URL - https//hhslawyers.com/blog/off-plan-
  property-disputes-in-dubai/
• Email info_at_hhslawyers.com
• Website - https//hhslawyers.com/