Legal update

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Real Estate

·

UAE

Off-plan delays in Dubai: when buyers can get their deposit back

Off-plan delays in Dubai: when buyers can get their deposit back

Youssef Farid

Partner,

Real Estate

· 6 min read

Off-plan property can be a good investment, but delays are common. When a developer misses its handover date, buyers have more options than most realise.

1. Read the handover clause

The sale and purchase agreement sets the expected completion date and any grace period. Note both, and keep every notice the developer sends.

2. Check the escrow account

Payments for registered off-plan projects in Dubai go into an escrow account controlled by rules that protect buyers. Those rules matter if the project stalls.

Key point

Buyers acting together usually recover more, faster and at lower cost than buyers acting alone.

3. Complain to the right authority

Complaints about registered projects can be raised with the regulator, which can pressure a developer to refund or deliver.

“One fee, one lawyer, and the money came back.”

4. Negotiate before you litigate

Most developers would rather refund in instalments than defend a regulatory complaint and a court case at the same time.

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