The UAE real estate market isn’t just a hub of investment opportunities, but it also encourages people to buy their dream & lavish properties to live in peace in the country. Most people who are willing to make real estate investments in the country, or are planning for it, have concerns about what they could do in case of delayed possession handover. 

The Dubai Real Estate Regulatory Authority has some very stringent policies, ensuring a seamless process for buyers or investors to acquire their dream properties. With these policies and regulations in place, it is now easier for buyers to safeguard their interests. 

In case any developer fails to comply with the promised possession deadline for the property you have invested in, there’s an option for you to register a legal action against the builder with the help of lawyers in Dubai or file for a claim. 

In this article, we will walk you through the legal procedures that you must adhere to upon encountering a delay in the possession handover of real estate in UAE. 

Potential Reasons for Delay in Property Handover UAE

Some of the many common reasons for property handover delay in Dubai or other Emirates in the UAE are:

• Construction Delays:

Some unforeseen circumstances, such as material shortages, labour disputes, adverse weather conditions, and other such issues, often put the construction work on hold. Due to this, the project completion date might be pushed further, which eventually results in a delayed handover. 

• Delayed Regulatory Approvals:

There are certain approvals that a developer must attain from diverse government authorities prior to delivering properties to buyers. In certain cases, getting these approvals takes longer than planned, which causes a property handover delay in Dubai. 

• Last Moment Upgrades or Modifications:

If a buyer requests some upgrades or modifications to their property, the added work might result in a handover delay. However, any delay caused because of the proposed changes outside of the developer’s construction plan will be on agreed terms with the buyer, ensuring no legal hurdles or compensations. 

• Unavoidable Financial Constraints:

There is a chance that property developers in the UAE might face some financial challenges, which will then change the overall course of a real estate project. Thus, it will lead to slower construction progress and delays in handovers. 

What can You Do Right After You Experience a Delay in Property Handover in UAE?

RERA, a government body operating under DLD (Dubai Land Department), will be determining the overall compensation that a developer must pay to the investor or buyer upon property possession delay in UAE. 

If a developer fails to meet the possession handover deadlines as specified in the purchase SPA or contract, the buyer has some legal rights for delayed property possession in UAE to get along with. They include:

• You must review the SPA (Sales and Purchase Agreement) thoroughly to get an oversight of the obligations of your property developer. Under these obligations, you will find the agreed-upon handover date and the associated penalties upon missing the deadline. You ought to carefully review these clauses to determine your liability.
• As a buyer, you can seek termination of the contract due to the violation of the deadline clause and seek compensation from the property developer. In case the developer doesn’t agree to cancel the contract and make the necessary refunds, you can take legal action, backed by RH and HALE’s team of proficient lawyers in Dubai.
• You can allow the developer to continue with the construction work, and file a claim for the delay caused. The amount of compensation that you will get will depend on the extent of the delay and the associated financial or investment setbacks. Hire a legal expert to help you handle claims for real estate handover delay in UAE.
• If your case is serious and the compensation order passed by RERA isn’t enough to justify your investment hurdles, you can approach DLD (Dubai Land Department). The DLD looks after all property registrations in Dubai, and has the power to intervene in critical cases of property handover dispute UAE.
• Take advantage of our real estate legal services in UAE and try negotiations outside the court, away from the judiciary authorities. At RH and HALE, we offer arbitration and mediation services to settle your disputes on common grounds and to reach a mutually agreeable decision.
• In case the negotiation fails, our real estate lawyer in Dubai will then take your case to the court and present your side. As a result, the court can then order refunds, contract enforcement, and compensation with respect to your case.

For most cases, a property developer voluntarily complies with the compensation, refunds, and claims requests raised by buyers upon delayed possession handover. However, there will be situations when builders will continue to dodge answers and compensation, causing more trouble for the buyers. 

And that’s where RERA steps in and allows you to file a formal complaint. Following that, RERA will be appointing an officer with the power to perform a judge’s functions. This officer will be performing an internal inquiry to pass an order that suits the interest of the buyer, while keeping all the legalities in check. 

RH and HALE is one of the best law firms in Dubai and all across the UAE, having a strong team of skilled, experienced, and focused real estate advocates to take on your case. From providing you with legal advice at every step of filing your claim or compensation to presenting your case in front of the RERA officer, we will have your back!

UAE Laws that Keep Property Buyers Protected in the Country

Here are the three strict laws in the UAE that protect the rights of property buyers or investors in the country:

• Dubai Law No. 13 of 2008

It regulates all types of property registration in Dubai and ensures that developers adhere to their project milestones. 

• RERA Regulations

RERA is the government body that keeps a close watch on property construction progress. In case developers breach their delivery deadlines or misuse the funds of investors, RERA will step in to take appropriate actions. 

• Law No. 8 of 2007

This law mandates that property developers deposit all payments into escrow accounts, which will protect buyers’ or investors’ funds in case the project is canceled or delayed. 

Parting Words

UAE’s property market is highly secure, mostly because of the strongly enforced legal systems that back it up. Following that, RERA also keeps a close check on all the real estate activities within the country. However, there are still certain unavoidable instances that might result in dissatisfaction of buyers, and a real estate project delay in UAE is one among them. 

If you encounter such a situation, the best thing is to know your legal rights and invoke them right on time. Make sure you have the right documents with you to prove your case, and bring them to our proficient lawyers in Dubai! 

At RH and HALE, we don’t just offer you legal advice on how to address the property handover delay situation, but also accompany you across all the stages. From assisting your case with arbitration and mediation to presenting it before the court, we will make sure the outcome adheres to your best interests. 

Feel free to connect with our consultants, and let us guide you on a seamless path to address the delay in possession handover of real estate in UAE.