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Property Handover Delays in Dubai

How Should You Handle Property Handover Delays in Dubai

There are so many property handover delay cases in Dubai. And if you are a claimant you have the right to get compensated for such delays. Getting disappointed on the day you expect to hold the keys to your new investment can be highly frustrating. Thankfully, there are procedures and courses of action you can follow to ensure that you handle such situations correctly. Some such actions include:

Procedure and actions to handle property handover delay cases in Dubai

  • Including a compensation clause in the contract.

The contract that you sign with your developer must include a compensation clause. The binding contract signed is the legal representation of the agreement. As such the courts may not consider anything that is not included in this contract.

  • Make payments on time.

According to the contract that you are getting in to with the developer, property handover should be done after completion of payments as agreed. If you fail to make these payments, you don’t have the power to claim for handover delay compensation. Making the payments as agreed removes you from any blame from the developer’s side as well.

  • Confirm if the project has been cancelled

There are some instances where an investor buys land in an area included in the government’s planning map. RERA cancels such projects (Real Estate Regulatory Authority). And the compensation process is handed over to the Dubai Real Estate Courts by the liquidation committee. 

  • Site visits

You must inspect the project’s state regularly to assess whether the handover delay is due to incomplete work. If this is the case, you will want to speak with the developer for possible solutions.

  • File a claim

If no solution works for you, then is the right time to forward the case to the Dubai Law Courts. At this time will also want to find a suitable property lawyer so that they can help you manage your case. 

You should know: How Lawyers in UAE Help with Tenant and Landlord Disagreements

How to avoid property handover delays in Dubai?

One of the main reasons why people can end up with property hand over delay cases are failing to do the following;

  • Research: It is imperative that you know who you are getting into a contract with within the real estate industry. Learn about their work and their reputation regarding property development and handovers. 
  • Register the government’s project: to be protected by the government you need to register your project together with the developer with RERA. You can always confirm this through the Dubai Land Department website.
  • Make payments via escrow: Any legally registered developer in Dubai must have an escrow account registered with the Dubai Lands Department. All payments should be made through this account to sell off-plan units.
  • Confirm developer’s permits: remember that you are about to spend a lot of money on this investment, and you don’t want to fall victim of a developer who has no authority to work in Dubai. You cannot only end up losing money, but if they do sub-par work the project can also be life-threatening.
  • Take time with the contract: since the deal is a binding document, it must include all the clauses to protect you from any losses. Nevertheless, you have to ensure that you abide by your role to avoid falling on the losing end of the case.

With the help of a good lawyer and the above steps, you should be able to get done with your property handover delays in Dubai within a short time. To be secure, always be honest when entering into a contract with a developer. As it can go a long way to protect you from hefty costs that can lead to a breach of contract.

You must read: Delay in Possession Handover of Real Estate: Compensation to Claim from Developer

Property Experts at your service

We at HHS Lawyers in Dubai can assist you all aspects regarding your Property as we have a strong, competent team well-versed in UAE law to ensure that we have you covered on all aspects. 

Feel free to call to make a booking or simply to have some of your initial questions answered.

A senior partner in HHS Lawyers with over 30 years of experience, Mohamed Ali applies his extensive knowledge of property and real estate law in UAE to help clients tackle property rights and real estate issues. Read more