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How to Overcome Property Handover Delays in UAE? Challenges and Solutions

Here’s your guide to securing your dream property on time

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Pavitra Shetty

Published on May 2, 2024, 08:44:14

368

purchasing property, leasing property, hadover delays, property owners

When purchasing or leasing property in the UAE, timely handover is an expectation. Yet, delays can disrupt plans and cause frustration. In such instances, knowing your rights and compensation avenues is crucial.

Are you tired of facing delays in property handovers in the UAE? Look no further as we've got you covered! This article provides essential information on how to handle such delays effectively. Don't let delays ruin your dream of owning a property. Read on to find out more!

Addressing Causes and Management of Delays

There are several reasons why property handovers may be delayed, including setbacks in the construction process, issues with permits, financial constraints, or adjustments to the project timeline. While some delays may be unavoidable, developers and landlords are responsible for fulfilling their commitments to minimise inconvenience for buyers and tenants.

In the UAE, construction projects, particularly those in the public sector, frequently experience delays due to contractual, financial and technical challenges.

Construction Law in the UAE

The cornerstone of construction projects' legal framework in the UAE is the Civil Transactions Law, commonly referred to as the Civil Code. Rooted in Islamic principles, this law governs civil transactions and lays down general principles applicable to construction projects.

Legal Framework Overview

The UAE's legal system draws from three main sources of law: Federal Laws and Decrees: These laws have nationwide applicability across all Emirates, providing a uniform legal framework for construction projects.

Local Laws: Each Emirate has the authority to enact its laws, ensuring alignment with federal legislation while addressing specific regional needs and considerations.
Shariah: The legal system in the UAE is influenced by Islamic principles, which are integrated into the legal framework, particularly in matters concerning civil transactions and contracts.

Official Municipality Websites

Here is a list of official Municipality websites of each Emirate in the UAE to stay updated on legal regulations related to construction projects that can be helpful to ensure compliance with legal regulations for construction projects:

  • Al Dhafra Region Municipality
  • Abu Dhabi City Municipality
  • Al Ain City Municipality
  • Dubai Municipality
  • Sharjah Municipality
  • Municipality and Planning Department Ajman
  • Umm Al Quwain Municipality
  • Fujairah Municipality

By visiting these websites, you can access updated laws, regulations, and guidelines that are tailored to the jurisdiction of each Emirate.

Understanding Rights and Legal Protections

The UAE has regulations safeguarding the interests of property buyers and tenants facing delayed handovers which are as follows:

Developer Accountability: Developers are bound by sales and purchase agreements to deliver properties within agreed timelines. Failure to do so can lead to penalties or compensation for affected parties.
Rental Disputes Resolution: For rental properties, each emirate's Rental Disputes Centre (RDC) facilitates fair resolutions between landlords and tenants, offering a transparent process to seek compensation for delays.
Termination Options: In cases of significant delays, buyers and tenants may terminate contracts and seek refunds. However, contract terms vary, so reviewing agreements is essential.
Exploring Compensation Solutions:When confronted with handover delays, consider these compensation options:
Lease Extension: Tenants can negotiate with landlords to extend leases until handover, ensuring uninterrupted accommodation.
Financial Reimbursement: Buyers and tenants may seek compensation for incurred losses, covering additional rent, relocation expenses, storage fees, or related costs.

Navigating Contracts and Legal Recourse

Here are some legal recourse options you can explore in the event of delays in construction projects:

Review Contract Terms: Check for penalty clauses specifying compensation for delays.
Legal Action: If negotiations fail, legal recourse is available. Consulting a real estate lawyer can guide you through the process.

Managing Off-Plan Property Delays

Confirm Payments and Paperwork: Ensure all dues are settled and paperwork is complete to avoid delays stemming from overlooked tasks.
Site Evaluation: Visit the project site to assess progress and understand reasons for delays, engaging with developers for insights.

While property handover delays pose challenges in the UAE, proactive awareness of rights and compensation avenues can mitigate their impact. Regular contract reviews, legal consultations when needed and open communication with involved parties are vital. In complex situations, seeking legal assistance ensures a smooth, lawful resolution

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004Follow The Law Reporters on WhatsApp Channels.

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