Buying off-plan or newly completed property in Dubai is a long commitment: staged payments, construction milestones and a handover that may be months or years away. When a project is delayed, the specifications change, or the unit is delivered with defects, buyers need a clear view of their position before they respond to the developer.

MAX Legal Consultancy advises buyers and investors on disputes with developers in Dubai. We review the Sale and Purchase Agreement (SPA), the payment record and the project's status, explain the options that may be available, and help you choose a course of action that fits the facts of your matter.

Buyer and Developer Disputes We Advise On

• Delayed handover, or projects that have stalled beyond the completion date in the SPA

• Changes to the unit's size, layout or specifications, or to the project's amenities

• Developer default, including failure to complete or deliver as agreed

• Requests to cancel an SPA and questions about refunds of amounts already paid

• Escrow and payment issues, including disputed instalments and changes to payment plans

• Defects and snagging issues identified at or after handover

• Developer notices about termination, late payment or retention of amounts paid

Delayed Handover

Most SPAs set an anticipated completion date and often allow the developer a grace period. Whether a delay gives the buyer a right to compensation, a right to terminate, or neither depends on the wording of the SPA, the reasons for the delay and how the project's progress has been recorded with the Dubai Land Department. We review these points before you take any step that could affect your position, such as signing an addendum that extends the completion date.

Where RERA cancels a project by a final reasoned decision, the developer must refund all payments made by purchasers, following the escrow procedures in Law No. 8 of 2007. Cancelled and stalled projects are then handled by the Special Tribunal for Unfinished and Cancelled Real Property Projects, now governed by Decree No. 33 of 2020.

Changed Specifications and Developer Default

If the unit or project being delivered differs materially from what was agreed — in area, layout, finishes or facilities — the SPA and any approved marketing materials become central evidence. Depending on the extent of the change and the contract terms, possible remedies range from rectification or a price adjustment to compensation or, in serious cases, termination of the agreement.

Cancellation Requests and Refunds

Buyers sometimes want to cancel because of a delay, a change in personal circumstances or concerns about the project. A cancellation at the buyer's own initiative is treated very differently from a termination based on the developer's breach. If a buyer stops paying instalments, the developer may act under the SPA and Law No. 13 of 2008, as amended by Law No. 19 of 2020: it must first notify the Dubai Land Department, which serves the buyer a 30-day notice, and how much the developer may then retain depends on the project's certified percentage of completion. For this reason, we recommend taking advice before withholding payments or sending formal notices.

Escrow and Payment Issues

Under Law No. 8 of 2007 on escrow accounts for real estate development, payments for off-plan units in Dubai are generally required to be made into a project escrow account regulated by RERA, the Real Estate Regulatory Agency. Reviewing where and how your payments were made, and the project's registration status, helps establish the strength of any claim and the practical routes for recovering funds.

Defects at Handover

Defects found during inspection or after handover should be documented promptly, with photographs and written notice to the developer. Depending on the SPA and applicable UAE and Dubai legislation, buyers may be able to require the developer to rectify certain defects, particularly within warranty periods.

How We Review Your Matter

We start with the documents. To assess your position we usually ask for:

• The signed SPA, reservation form and any addenda

• Receipts and bank records for every payment made

• The unit's Oqood registration or other Dubai Land Department records

• Correspondence and notices exchanged with the developer

• Photographs, inspection reports or snagging lists where defects are involved

We then explain which routes may realistically be open — negotiation with the developer, procedures involving the Dubai Land Department, arbitration where the SPA provides for it, or proceedings before the Dubai Courts — and what each involves in time, cost and risk. Outcomes always depend on the facts, the contract and the evidence, and we will tell you plainly where a claim is weak as well as where it is strong.

If your project is late or has been cancelled, our guide explains what happens to the money you have already paid, and before you sign a new contract, our off-plan SPA checklist sets out what to check. For completed properties, resale transactions and other property questions, see our real estate lawyer in Dubai page. If your matter involves several issues at once, our legal team in Dubai can review it as a whole.

Speak With Us About a Developer Dispute

If you are dealing with a delayed handover, changed specifications or a disputed payment, contact MAX Legal Consultancy for a confidential review of your documents and options.

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Frequently Asked Questions

What can I do if my off-plan project is delayed?

Start by checking the completion date and any grace period in your SPA, then gather your payment records and the unit's registration details. Depending on the length of the delay, its cause and the contract terms, options may include negotiating a revised timeline or compensation or, where the delay amounts to a serious breach, seeking termination and a refund. Advice at this stage helps you avoid steps that weaken your position.

Can I stop paying instalments if the developer is behind schedule?

Withholding payments without advice can put you in breach of the SPA and may allow the developer to act against you, including retaining part of the amounts paid. Have the SPA and the project's status reviewed before you pause any payment.

What documents should I prepare?

Your signed SPA and addenda, all payment receipts and bank records, the unit's Dubai Land Department registration details, and all correspondence and notices from the developer. For defects, add photographs and any inspection or snagging reports.

What if the property is handed over with defects?

Record the defects in writing and with photographs, and notify the developer formally. Depending on the SPA and applicable law, the developer may be required to rectify certain defects, particularly within warranty periods. Where defects are serious or remain unresolved, further steps can be considered.