Question: My husband and I bought our first Dubai property off-plan in 2023. We weren't investors – the plan was to move into it when our current tenancy ended. The original handover was supposed to be this year, but the developer has now pushed it back and construction still doesn't look anywhere near finished.
We have paid 60 per cent of the purchase price and are also paying Dh135,000 ($36,760) a year in rent. The developer keeps telling us the delay is unavoidable and covered by the Sale and Purchase Agreement's (SPA) grace period.
We can probably manage another year, but what worries me is that there seems to be no certainty. At what point does a normal construction delay become something a buyer should seriously worry about? SA, Dubai
Answer: This is exactly why I tell off-plan buyers that the handover date in the brochure and the contractual completion provisions in the SPA are not necessarily the same thing.
Your starting point is the SPA. Look for the anticipated completion date, the contractual grace period, circumstances allowing extensions and what remedies are available if the developer goes beyond them. Many Dubai SPAs contain grace periods and also the law allows for a 12-month delay in any case. Therefore, missing the originally advertised date doesn't automatically mean the developer is in breach.
I would then compare the contract with the project's official construction progress, rather than relying on what the sales team tells you or what the site looks like from the road.
In your situation, the biggest issue is that you're an end user. Every month of delay has a real cost because you're continuing to pay Dh135,000 a year in rent while a substantial amount of your capital is already tied up in the property.
I wouldn't panic simply because a project is late. Construction delays happen. But I also wouldn't accept indefinite assurances of “soon”.
Once you know the contractual long-stop position, get the developer to confirm the revised completion programme in writing. If progress and the promised date don't appear remotely compatible, that's the point at which I would take the SPA and payment record to a property lawyer and understand your options before making any decision about withholding payments, cancelling or pursuing compensation.
The important thing is not to stop paying instalments because the project is late. Your obligations and the developer's obligations are separate contractual issues, and you don't want to turn yourself from the aggrieved buyer into the party in default.
Q: I recently bought a two-bedroom apartment in Dubai that had a tenant in it. I was very clear with the broker that this wasn't an investment – my wife and I wanted to live there.
I was told the tenant had already received an eviction notice from the previous owner and would leave shortly after transfer.
The tenant is now saying the notice doesn't apply to me because I'm the new owner and that I need to give another 12 months' notice of my own. My current rental contract expires soon, so if that's correct I could end up owning an apartment I can't live in while also having to rent somewhere else. Who is right? PK, Dubai
A: This is a good example of something that should be checked before transfer rather than afterwards, because the value of a tenanted property to an investor and to an end user can be very different.
The basic position is that buying a rented property does not automatically terminate the tenancy. The new owner steps into the existing landlord's position and inherits the tenant in situ. DLD guidance confirms that the new landlord assumes the previous landlord's obligations according to the agreed tenancy contract.
With reference to the existing eviction notice. I can tell you that in the past, there was considerable discussion over whether a purchaser needed to serve a fresh 12-month notice. More recent Rental Disputes Centre decisions have indicated that a correctly served eviction notice can be attached to the property and remain effective following a sale, although individual disputes are ultimately determined on their facts and by the RDSC.
So before accepting the tenant's position or the broker's, get a copy of the actual notice. Check who issued it, when it was served, how it was served, the reason stated and the required holiday date.
For owner occupation, Dubai's rules require 12 months' notice through the prescribed formal process, and there are additional requirements surrounding personal use.
If your purchase depended on obtaining vacant possession, I would get the notice reviewed properly now.
And for anyone considering buying a tenanted property to live in, this is an important lesson: never assume “the tenant is leaving” as sufficient due diligence. Ask to see the legal notice before signing and structure the purchase around the reality of when possession can actually be delivered.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@evadxb.com
