Facing delays in property handover can be frustrating. While most developers aim to meet their schedules, unexpected delays can occur. Fortunately, there are steps buyers can take to address these delays effectively.

What to Do When Property Handover is Delayed in Dubai

If you’re dealing with a delayed handover of your off-plan property in Dubai, here are some important steps to follow.

Ensure All Payments are Complete

The first step is to confirm that you have fulfilled all your financial obligations. Double-check that all necessary payments and documents have been submitted by the handover date to avoid any hold-ups from your side.

Visit the Project Site

It’s also a good idea to visit the project site and assess the progress yourself. Speak to the developer about the expected completion timeline. Additionally, you can check the project status on the Dubai Land Department’s (DLD) website, which provides updated information on the progress of registered off-plan developments.

Check if the Project is Cancelled by RERA

In some cases, the Real Estate Regulatory Authority (RERA) may cancel a project, which can cause delays. This could happen due to factors like re-planning or land-related issues. If the project is cancelled, it is handed over to a liquidation committee and then the Dubai Real Estate Court, which oversees the settlement of payments to buyers.

You can verify if a project has been cancelled by checking the ‘Project Status’ section on the DLD’s website.

Negotiate with the Developer

If the project is still active, your best option is to negotiate with the developer. Review your Sale and Purchase Agreement (SPA) for clauses related to delays, as this will guide your negotiations and potential legal actions.

File a Case Against the Developer

If negotiations fail, and the developer has exceeded the one-year grace period outlined in the SPA, you can consider filing a case at the Dubai Real Estate Court. Compensation claims or contract termination may be possible depending on your contract terms. A property lawyer can provide valuable assistance in this situation.

However, legal action should be the last resort, and it’s advisable to resolve the matter amicably with the developer when possible.

Can the Buyer Delay the Completion Date?

In some cases, buyers may also seek to delay the completion date, but this will depend on the terms of the contract.

How to Prevent Delayed Property Handovers in Dubai

Here are some proactive steps buyers can take to minimize the risk of delays:

1. Research the Developer: Before purchasing an off-plan property, investigate the developer’s track record for timely project completion and handovers.
2. Verify RERA Registration: Ensure that the project and developer are registered with RERA by checking the DLD website.
3. Check for Escrow Account Details: According to Law (8) of 2007, developers must have a DLD-registered escrow account for off-plan units. All payments should be deposited into this account, ensuring your investment is secure.
4. Confirm Necessary Permits: Make sure the developer has obtained all necessary permits and approvals from DLD.
5. Review the SPA Thoroughly: Always review your Sale and Purchase Agreement to ensure it includes clauses that protect your interests in case of delays.

FAQs

What Are the New Laws for Unfinished and Cancelled Projects in Dubai?
Dubai has recently introduced new rules for unfinished projects. For more information, refer to our guide on the laws for cancelled and unfinished projects in Dubai.

What Are the Benefits of Buying Off-Plan Properties in Dubai?
Considering purchasing an off-plan property? Read our guide to discover the advantages of investing in off-plan projects in Dubai.

Should You Buy or Rent in the UAE?
Deciding whether to buy or rent? It depends on your personal circumstances. Our guide on buying vs. renting in the UAE can help you make an informed decision.

In conclusion, dealing with a delayed property handover in Dubai can be challenging, but by taking the right steps and precautions, you can navigate the process more smoothly. Whether through negotiation or legal action, buyers have options to protect their investment.