The Struggle of a Deferred Dream Home: Navigating Through the Maze of Dubai Property Laws

It was an investment I made for the future—a property in the sprawling metropolis of Dubai or the UAE that was meant to be mine by 2022. Yet, the blueprint of my dream house remains just that—a blueprint. Does this issue ring a bell? You’re not alone! Let me unravel the story and hopefully provide some guidance on how to steer through these troubled waters.

SPA Contracts

Civil Transactions law states that the contract must be executed in line with its provisions and in good faith.

dubai property terms and laws

The Dilemma: A Home in 2022, Still Under Construction

Four years ago, I dove headfirst into the property market, putting my faith in a developer’s promise. The handshake was firm, and the papers were signed with a flourish. My dream home was due in 2022. But here we are, halfway into the year and my property stands, incomplete. With construction around 60% done, I worry, “Will the developer falter?” I’ve been told to cough up another installment but I’m skeptical—should I continue to shell out my hard-earned money? The big question is: can I legally withhold my payment? What steps can I take against the developer? I want out, I want my payments back, perhaps with a little something extra for the inconvenience caused. Let’s dig a bit deeper, shall we?

Understanding Your Legal Rights: The Power of Civil Transactions Law

Firstly, let’s delve into the legal nitty-gritty. Article 246 & 272 of the Civil Transactions law states that the contract must be executed in line with its provisions and in good faith. In layman’s terms, both parties need to fulfill their commitments. If one party falters, the other can demand performance or termination—post a formal notification, of course. The judge, in his wisdom, can either insist on the immediate execution of the contract, give the debtor additional time, or allow contract termination with damages. This decision is subjective and depends on the circumstances. Additionally, it’s crucial to consider the principles of sharia inheritance law in the UAE, which governs property rights and inheritance, ensuring assets are distributed equitably among beneficiaries according to Islamic jurisprudence.

The Role of The Higher Court: Jurisdiction No. 647/2021 of Real Estate

As per the Higher Court, if a contract is canceled, they determine which party is at fault or if any contractual errors were made. The court assesses all evidence and documents before making a decision. If compensation is warranted, it is the judge’s responsibility to estimate it. The burden of proof lies with the creditor, who must establish and verify the damage and its amount. source

Your Options: Ceasing Payments, Filing Complaints, and Seeking Legal Recourse

Now, here’s the deal. As the property hasn’t been delivered on time, you have the right to stop paying the installments. The developer is late and hasn’t fulfilled his obligations. The next logical step is to lodge a complaint in the Land Department, Dubai against the developer, requesting the termination of the sale contract, reimbursement of the paid amount, and compensation. If the issue persists, you have the right to approach the courts or arbitration, based on your agreement in the sale contract. This is according to Article 11 of Law No. (19) of 2020 amending Law No. (13) of 2008, which regulates the Interim Real Property Register in the Emirate of Dubai.

Navigating through these circumstances can be daunting. But remember, knowledge is power. Arm yourself with the right legal advice and stand your ground. Your dream home may be delayed, but your rights aren’t. Don’t let your dream turn into a nightmare. Stand tall, and take action!

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