Question 1

What are my recourses if a developer fails to deliver an off-plan unit on time?

Accepted Answer

Three principal routes under the Dubai framework. (1) For developer-caused delay greater than the contractually permitted period (typically 12 months under most off-plan SPAs), the buyer can apply to RERA for project cancellation and full refund through the project escrow account framework under Law 8 of 2007. (2) For material delay where the project is continuing, buyers can claim compensation reflecting opportunity cost, deposit-return at premium, or additional rent paid during the delay period. (3) For force majeure delays (unforeseeable, unavoidable events), the developer's permitted-delay period is typically extended on a one-for-one basis, but the burden of proof is on the developer. Recovery timelines: 6-14 months through RERA + onshore courts, depending on the route and contestation level.

Question 2

What is the RERA escrow account framework?

Accepted Answer

Under Law No. 8 of 2007 (Real Estate Trust Accounts Law), every off-plan project must have a dedicated, single-project escrow account opened with a RERA-approved bank. All buyer payments must be deposited into that account; withdrawals are released to the developer only against verified construction milestones (typically structural completion, MEP, façade, handover). The escrow architecture is the cornerstone of buyer protection: it ensures buyer payments fund the specific project they purchased into rather than being available for the developer's general working capital. Buyers should always verify escrow registration before signing — the project's RERA registration number includes the escrow-account designation.

Question 3

What rights does the buyer have if the developer cancels the project?

Accepted Answer

Under Decree No. 6 of 2010, project cancellation triggers a structured framework for handling buyer payments. The default position: buyer payments are returned from the escrow account, less the developer's permitted retention based on the stage of construction completed. The retention scale (originally set at significant percentages, since refined through case law) caps developer entitlement at the project-completion percentage, with the balance returned to buyers. Where the developer has not completed substantial works at the time of cancellation, retention is minimal and full refund is the practical outcome. We recover refunds for buyers facing project cancellation through coordinated RERA + onshore-court proceedings.

Question 4

Can the buyer transfer or resell the off-plan unit before handover?

Accepted Answer

Yes — the buyer's step-rights (assignment, novation, resale before handover) are typically expressly addressed in the off-plan SPA. Most master-developer SPAs require developer consent for assignment, but consent cannot be unreasonably withheld where the assignee is creditworthy and meets buyer-eligibility requirements. Assignment fees are typically charged by the developer (capped under RERA Directions). For investor buyers planning to flip before handover, the assignment-rights and assignment-fee provisions are among the most important commercial terms in the SPA — heavily negotiated and frequently litigated.

Question 5

What snagging and defects-liability rights does the buyer have?

Accepted Answer

Off-plan SPAs typically provide a snagging period (usually 30-60 days from handover) during which the buyer can identify and require remediation of unit defects. The developer is obligated to remediate within a defined period. Beyond the snagging period, the standard defects-liability period under UAE Civil Code Article 880 imposes a 10-year decennial liability on contractors and consultants for major structural defects, and a 1-year warranty for installation defects, running from handover. Buyer claims for defects after handover are typically routed through the JOPOA for common-area defects, and directly against the developer/contractor for unit-specific defects.

Off-plan property — for buyers facing delay, cancellation or non-delivery; for developers structuring sales.

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