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USA/Canada

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© 2024 Totality Real Estate LLC. All rights reserved.

Contact

USA/Canada

UAE

UK

Request a Call

© 2024 Totality Real Estate LLC.

All rights reserved.

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What options do investors have to cancel a real estate contract with a developer without going through the court system in Dubai?

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What options do investors have to cancel a real estate contract with a developer without going through the court system in Dubai?

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What options do investors have to cancel a real estate contract with a developer without going through the court system in Dubai?

What options do investors have to cancel a real estate contract with a developer without going through the court system in Dubai?

In Dubai's real estate market, investors seeking to terminate a property contract with a developer without resorting to court proceedings have several avenues to consider:

  1. Amicable Settlement

    Direct Negotiation: Engaging in open discussions with the developer to mutually agree on contract termination terms can lead to a swift and cost-effective resolution.

    Mediation Services: Utilizing platforms like the Rental Disputes Center (RDC), which offers amicable settlement services, can facilitate agreements documented and approved by a supervising judge, granting them the force of an executive instrument. 


  2. Contractual Provisions

    Termination Clauses: Review the Sales and Purchase Agreement (SPA) for clauses that permit termination under specific conditions without court intervention. Some contracts include provisions allowing parties to rescind the agreement upon certain breaches or events. 

    Force Majeure: If unforeseen events render contract performance impossible, the contract may automatically terminate under force majeure provisions, eliminating the need for judicial involvement. 


  3. Regulatory Procedures

    Dubai Land Department (DLD) Applications: The DLD provides services for contract cancellation based on mutual consent or specific conditions outlined in the contract. Submitting a cancellation application through the DLD can formalize the termination without court proceedings. 


  4. Legal Amendments

    Law No. 19 of 2017: This amendment allows developers to terminate contracts without a court order if the buyer defaults, provided specific procedures are followed, including notifying the DLD of the buyer’s default. 

Recommendations for Investors

Consult Legal Experts: Engaging with legal professionals specializing in Dubai real estate law ensures that investors understand their rights and the implications of contract termination.

Document Agreements: Ensure that any termination agreement is documented in writing, detailing the terms and conditions to prevent future disputes.

Verify Contract Terms: Carefully review the SPA and related documents to identify any clauses that facilitate termination without court involvement.

By exploring these options, investors can navigate the contract termination process effectively, safeguarding their interests while minimizing legal complexities.

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