Cancelled Real Estate Projects
Legal Assistance for Cancelled Property Projects
The real estate industry in the UAE is governed by strict regulations and compliance standards, ensuring complete investor protection. Every phase of property development in the UAE is expected to completely adhere to all the legal frameworks and buyer rights.
However, there are certain circumstances under which some projects get officially cancelled, mostly due to insolvency of developers, lack of resources, economic hurdles, change of budget, or technical complexities.
RERA has the authority to cancel real estate projects under Decree No.6/2010, considering the intensity and gravity of the adverse situations or difficulties faced by a developer or buyer.
At RH and HALE, we provide comprehensive legal services to help investors recover their funds and protect their rights in case of a real estate project cancellation. We have proficient lawyers in Dubai to represent investors before judicial authorities, helping them with:
Irrespective of whether a real estate project is cancelled in the middle of its construction phase or a developer is delaying the handover for numerous reasons, our team at RH and HALE will help you achieve a fair and lawful solution, ensuring full investment recovery.
Free Consulting
Schedule a free consultation to discuss your legal matter with an experienced attorney. We’ll review your situation, explain your options, and help you understand the best path forward at no cost and no obligation.
Our Legal Services for Addressing Real Estate Project Cancellation Cases
Legal Case Filing
Our real estate lawyer in Dubai will be filing a formal investor claim to the respective judicial body dealing with the cancelled project. This way, we will ensure that all your legal rights are determined and protected throughout the compensation process.
Attend Court Sessions
We will be attending the court sessions and will represent your case associated with the real estate project cancellation. Our law consultants in Dubai will make sure that the distribution lists are legit and the investor funds are being refunded fairly without violating any of the UAE laws.
Recovering Escrowed Funds
Upon cancellation of a project, you might seek a refund of your funds held in the developers’ escrow account. Our team will implement legal procedures for recovering your investment from the escrow accounts. We will be coordinating with DLD and other authorities to ensure lawful fund disbursement.
Object Unlawful Fund Distributions
If you feel that the fund distributions by a developer upon project cancellation are unfair and unlawful, our lawyers can help you raise a legal objection to the same. We will appeal on your behalf to identify the violation of legal distribution standards and ensure your financial rights are protected.
Investor Representation Before Regulatory Bodies
In order to professionally present your case against a real estate project cancellation, we will be representing investors before authorities like DLD, RERA, and other judicial liquidation committees. This way, our real estate legal services in UAE can ensure your claims are raised, presented, and settled professionally.
Arbitration & Reconciliation
For a settlement outside the court, our team at RH and HALE can also act as a mediator for reconciliation or help investors appoint arbitrators to reach a mutually agreeable solution, without the intervention of judicial authorities. If arbitration and reconciliation fail, we can then file a formal complaint and take the matter to the court.
UAE Legal Framework & Investor Rights for Cancelled Projects
The UAE real estate law is structured to protect investors’ funds across all stages of a property development. Therefore, clear legal mechanisms have been introduced for managing the halted or cancelled real estate projects in the country.
Legal Frameworks:
Federal Law No.5/1985
This law sets the legal foundation for all the investor rights and contractual claims, especially in the case of non-performance and contract breach associated with real estate transactions.
Dubai Law No.8/2007
Also known as the Escrow Account Law, it ensures that all the funds collected from off-plan property sales will be held in the escrow accounts to protect investors in case of project cancellations.
Dubai Law No.13/2008
This law mandates the registration of all off-plan property sales with DLD. Thus, it reinforces the rights of investors in case of cancelled project refund claims.
RERA Regulations
RERA is responsible for providing the administrative and legal framework for monitoring real estate project cancellations in UAE and distributing the investor funds lawfully and fairly.
UAE Laws & Regulations:
DLD Oversight
Dubai Land Department (DLD) will be keeping an oversight on all the cancelled properties and supervising the next procedures under legal norms.
Appointing a Liquidation Committee
A liquidation committee will then be appointed to review the escrow accounts of developers and distribute funds fairly.
Review Developer’s Obligations
The governing authorities, like RERA, DLD, and the liquidation committee, will review the developers’ obligations for ensuring complete transparency in the disbursement process.
Refund Investors’ Funds
Finally, the governing authorities or the court will grant a refund of the buyers’ money invested in the cancelled project, after deducting the obligations or actual costs.
Investor Rights:
Right to Claim Refunds
All the property investors are entitled to recover their funds upon a real estate project cancellation. Investors can recover either a part of or all of their money post-liquidation.
Complete Government Supervision
DLD will be overseeing the entire liquidation process to ensure fairness in fund distribution among investors after a project is cancelled in the UAE.
Compensation Claims
The investors can raise formal compensation claims against the financial losses, such as lost rental income, by taking the help of legal strategies.
Our Legal Approach to Cancelled Property Projects
RH and HALE, one of the best law firms in Dubai, is extending its service offerings to help you recover your investment, protect your rights as per the contract, and maintain your trust in UAE real estate laws. Upon hiring us for legal solutions, our method of approach will be:
Checking the Project Status:
We will primarily be verifying if the project is officially declared as cancelled by the governing authorities, such as RERA or DLD.
Reviewing the SPA:
Now, we will be assessing your SPA to identify the clauses in the contract that cover cancellations, associated penalties, and deposit refunds.
Providing Legal Assistance:
Our real estate lawyer in Dubai will then take over to ensure compliance with the project cancellation clauses and maximize your recovery.
Addressing Your Refund Claim:
We will then be initiating the formal procedures to recover your payments from the escrow accounts. If required, we can use arbitration and reconciliation to settle the dispute outside court.
Preparing the Documentation:
It is our responsibility to collect all the necessary documents, such as contracts, correspondence, and payment receipts, handy for validating fair refund disbursement.
Taking Legal Action:
If the refunds are denied or delayed from the developer’s end, we can then help you take the case to court or the associated governing authorities.
Why Choose RH and HALE?
RH and HALE are among the best law firms in Abu Dhabi, Dubai, Sharjah, and other Emirates in the UAE. We have a team of multilingual lawyers with robust expertise in the UAE’s real estate law, escrow recovery procedures, and judicial representations.
40+ Years of Experience
We have been providing our legal services in UAE for more than 40 years while adhering to the country’s evolving laws and regulations.
High Success Probability
We have so far efficiently handled hundreds of real estate dispute cases, including project cancellations, and can ensure the highest probability of a successful outcome.
Strict Legal Precision
Our lawyers in Dubai are trained to work by adhering to all the real estate laws, regulations, standards, and compliance rules to achieve legal precision for a case.
Complete Transparency
We make sure to keep things clear and transparent with investors on the claim proceedings, court hearings, escrow fund distribution, and DLD oversight on liquidation.
FAQs – Cancelled Real Estate Projects
When is a real estate project considered cancelled in the UAE?
When a real estate development gets terminated by the governing authorities in UAE, such as DLD or RERA, you can then refer to the project as cancelled. It mostly happens due to the developer’s non-performance, insolvency, and failure to comply with construction milestones.
Can I claim a full refund of my deposit for a cancelled real estate project in the UAE?
Yes, you can claim a full refund of your deposit if a project is cancelled in the UAE. However, the investment in the project must be made through regulated escrow accounts for an approved project, which will entitle you to claim refunds.
How can RH and HALE help me with claiming a refund or compensation for the cancelled project in Dubai?
At RH and HALE, we will be appointing a real estate lawyer to take on your dispute case. Following that, our legal expert will submit a formal legal claim to the designated authority, committee, or court that’s overseeing the fund disbursement and project liquidation process. We will be representing your case in the court, and if feasible, we can settle it with arbitration and reconciliation.