Buying property in Dubai is a big decision, and one of the most important things to consider is the handover date. While developers usually strive to stick to construction timelines, unforeseen delays can occur. If you are facing a delay in the handover of your property, there are steps you can take to protect your interests.

What to do if there is a delay

The first step is to confirm that you have fulfilled all payment obligations and submitted all necessary paperwork. Make sure you have paid all required fees by the handover date and have provided all relevant documents.

If you have done everything you are supposed to do and the developer is still late with the handover, you can take the following steps:

  1. Visit the project site and verify completion date. Visiting the project site allows you to assess the physical progress of the property and discuss the estimated completion date with the developer. Additionally, you can check the current progress and completion date of registered off-plan projects in Dubai by visiting the Dubai Land Department’s (DLD) website.
  2. Check for project cancellation by RERA. Handover delays in Dubai can sometimes be due to project cancellations by the Real Estate Regulatory Authority (RERA). This can occur if the land is affected by planning or re-planning projects. In such cases, the project is transferred to the liquidation committee and then to the Dubai Real Estate Court, which handles settlement and liquidation proceedings. To determine if a real estate project has been canceled by RERA, check the ‘Project Status’ on the DLD’s website.
  3. Engage in negotiations with the developer. If the project has not been canceled, it is advisable to initiate negotiations with the developer to reach a mutually agreeable solution. Referencing your contract or Sale and Purchase Agreement (SPA) is essential during these discussions. The contract should outline the necessary steps to take if the developer fails to meet the handover dates. This information will guide your negotiations and legal actions, if required.
  4. Consider filing a case against the developer. In the event that negotiations with the developer prove unsuccessful, you may choose to file a claim for compensation or seek termination of the contract. However, keep in mind that developers are typically granted a grace period of one year from the handover date stated in the Sale and Purchase Agreement. Legal action against the developer can be pursued once this grace period has expired. It is recommended to seek the assistance of a property lawyer and file a case at the Dubai Real Estate Court, which specializes in property disputes. The possibility of seeking compensation for the delay or claiming a recovery of paid amounts will depend on the clauses and conditions in your contract.

How to safeguard against delayed property handovers

To minimize the chances of experiencing delayed property handovers in Dubai, follow these precautions:

  • Research the developer. Prior to investing in off-plan property, conduct thorough research on the developer’s track record of completing projects and meeting deadlines. Consult with other investors and visit project sites for additional information. Purchase off-plan properties only from reputable and reliable developers.
  • Verify project registration with RERA. Ensure that both the project and developer are registered with RERA before investing in off-plan projects. You can verify project registration on the DLD’s website.
  • Confirm escrow account details. According to Law (8) of 2007, real estate developers must maintain a registered escrow account with the DLD to sell off-plan units. Ensure that your payments are deposited in the developer’s registered escrow account. You can verify the existence of an escrow account by searching for the project on the DLD’s website.
  • Validate necessary permits. Developers must possess the required permits and approvals from the DLD to promote and sell off-plan properties. You can verify the developer’s permit status on the DLD’s website.

Conclusion

Dealing with a delay in property handover can be frustrating and stressful. However, by following the steps outlined above, you can protect your interests and minimize the impact of the delay.