How does the law in Dubai address differences between the reported and actual property area?
In Dubai, discrepancies between the reported property area and the actual area can arise, particularly in off-plan properties or new developments. The Real Estate Regulatory Agency (RERA), which operates under the Dubai Land Department (DLD), has established clear guidelines to protect both buyers and developers in such situations.
Key Points:
Tolerances for Area Discrepancies:
According to RERA regulations, a developer is allowed a tolerance of up to 5% difference between the reported (or advertised) property area and the actual area delivered to the buyer. This means that if the actual size of the property is within 5% less than the advertised size, the developer is generally not required to compensate the buyer.
Beyond the Tolerance Level:
If the difference exceeds 5%, the buyer may have grounds to claim compensation or request a price adjustment. In such cases, the buyer can approach RERA or the Dubai Land Department to resolve the issue. RERA may then investigate the discrepancy and could require the developer to compensate the buyer for the difference in area, typically by reducing the purchase price proportionately.
Contractual Provisions:
It’s crucial for buyers to carefully review their Sales and Purchase Agreement (SPA). Many SPAs include specific clauses that address what happens if there is a significant discrepancy between the reported and actual property size. Buyers should ensure that such clauses align with RERA's regulations and protect their interests.
Resolution Mechanisms:
In case of disputes over property size discrepancies, the buyer can file a complaint with RERA. RERA will then review the case, including any evidence provided by both parties, and issue a ruling based on Dubai's real estate laws and regulations.
Additionally, buyers may seek resolution through the Rental Dispute Settlement Centre (RDSC) or through direct negotiation with the developer.
Supporting Data and Recent Developments:
According to reports from the Dubai Land Department, cases of property size discrepancies are relatively rare, but when they do occur, RERA's regulations provide clear guidelines to ensure a fair resolution.
Recent market data suggests that the vast majority of new developments adhere closely to the advertised property sizes, minimizing the occurrence of such disputes.
