What are legal options for property handover delays

Frustration in handover of projects marketed off-plan and investor options in instances of substantial delay are by no means extraordinary grievances laid against developers in Dubai. Arguably, delay in handover in such cases is a foregone conclusion with imagined completion dates approaching and subsequently expiring without acknowledgment, notice or delivery, much to the dismay of investors.

Investor options in circumstances of substantial delay, where a project has not been cancelled and no element of force majeure appears answerable for painstaking periods of inactivity, are fairly clear cut contractually, with investors well-protected under UAE law. However, careful consideration of contract terms and advance due diligence prior to purchase may negate future litigation where alternate avenues are available prior to, and over the course of, project development.

As a general rule, off-plan sale and purchase agreements (SPAs) are required to make specific mention of the expected completion date of the project as well as address the positions of the parties in the instance of default, particularly, for our purposes, where the developer fails to meet its deadline in respect of handover obligations. In practice, a period of delay is accepted, often providing the default position in the absence of developer notice of completion by the intended date.

The Dubai Land Department (DLD) website helpfully provides a project tracking service which offers assistance to investors in their monitoring of project progress over the related period. The timeline is expressed per percentage and allows a means of measurement without the need for constant update by the developer. Read further