In the United Arab Emirates (UAE), termination of real estate purchase agreements upon job loss will depend on the specific terms and conditions outlined in the contract. While job loss is not considered a valid reason for termination under the principle of force majeure, it is possible that the contract may contain provisions for termination in certain circumstances, such as financial hardship. It is important to review the contract carefully and seek legal advice before making any decisions related to termination. Additionally, if there is no clause in the contract, that allows termination based on job loss, you may have to consider other options such as renegotiating the terms of the contract with the developer or trying to sell the property to another buyer.
As per Article 11 of Law No. (19) Of 2020 Amending Law No. (13) of 2008 Regulating the Interim Real Property Register in the Emirate of Dubai, the developer has the right to terminate the off-plan sale agreement under certain conditions. The percentage of completion of the real property project plays a crucial role in determining the developer’s right to retain a certain percentage of the value of the real property unit, and the amount to be refunded to the purchaser.
In the case where the percentage of completion of the real property project exceeds eighty per cent (80%), the developer may choose to terminate the off-plan sale agreement. The developer can retain up to forty per cent (40%) of the value of the real property unit stipulated in the off-plan sale agreement, and refund any amounts in excess of this to the purchaser. This means that if the value of the real property unit is AED 1,000,000, and the developer terminates the off-plan sale agreement, the developer can retain AED 400,000 and refund AED 600,000 to the purchaser.
When the percentage of completion of the real property project falls between sixty per cent (60%) and eighty per cent (80%), the developer still has the right to terminate the off-plan sale agreement, but the percentage of the value of the real property unit that the developer can retain is reduced. The developer can retain up to forty per cent (40%) of the value of the real property unit in this scenario. For example, if the value of the real property unit is AED 1,000,000, and the developer terminates the off-plan sale agreement, the developer can retain AED 400,000 and refund AED 600,000 to the purchaser.
When the percentage of completion of the real property project is less than sixty per cent (60%), the developer’s right to retain a percentage of the value of the real property unit is further reduced. In this scenario, the developer can retain up to twenty-five per cent (25%) of the value of the real property unit. For example, if the value of the real property unit is AED 1,000,000, and the developer terminates the off-plan sale agreement, the developer can retain AED 250,000 and refund AED 750,000 to the purchaser.
It is important to note that the rules and procedures stipulated in this Article do not preclude the purchaser from having recourse to the courts. This means that even if the developer terminates the off-plan sale agreement as per the conditions mentioned in this Article, the purchaser still has the right to seek legal remedies in court. This could include seeking compensation for damages or seeking an injunction to prevent the developer from terminating the off-plan sale agreement.
The percentage of completion of the real property project plays a crucial role in determining the developer’s right to terminate the off-plan sale agreement and retain a certain percentage of the value of the real property unit. The purchaser should be aware of these conditions and their rights in case of termination of the off-plan sale agreement. It is always advisable to seek legal advice before making any decisions related to termination of a real estate purchase agreement.
Can i find a buyer and request the developer to transfer the property?
As a property owner in the United Arab Emirates, it is important to understand the limitations and procedures surrounding the transfer of a real estate purchase agreement to a new buyer. While you may have found a new individual who is interested in purchasing your property, it is important to note that you are not legally entitled to request that the developer of the property transfer the termination of real estate purchase agreement to this new buyer. This is because the developer is not obligated to enter into an agreement with another person, and cannot be forced to do so by the court.
However, this does not mean that the situation is without resolution. One potential solution would be to try and settle the matter amicably with the developer. This could involve having a conversation with them and discussing the possibility of them accepting a new buyer for the property. In some cases, the developer may be willing to work with you and provide a non-objection letter, which would allow you to sell the property to the new purchaser in the Dubai Land Department (DLD).
Obtaining a no-objection letter from the developer is important because it shows that the developer has no objections to the transfer of the property to a new buyer. Without this letter, the DLD may not approve the transfer of ownership. It is important to note that obtaining a non-objection letter does not guarantee that the DLD will approve the transfer, as there may be other factors to consider, but it is a necessary step in the process.
If the developer is willing to provide a non-objection letter, it is important to work out the details of the sale with the new buyer. This includes discussing the terms of the sale, such as the purchase price and any contingencies, and making sure that both parties are in agreement. Once the sale is complete, it is important to ensure that all necessary documentation is submitted to the DLD, including the non-objection letter and proof of ownership.
Another important aspect to consider when selling a property in the UAE is the recovery of any funds that you have already paid to the developer. Depending on the specific terms and conditions outlined in your original real estate purchase agreement, you may be able to recover some or all of the money you have already paid to the developer. This may be done through a process called “assignment of contract”, which allows the new buyer to assume the rights and obligations of the original purchase agreement.
It is important to note that the process of transferring a property purchase agreement to a new buyer can be complex and may involve navigating various legal and administrative requirements. It is always advisable to seek legal advice before making any decisions related to the transfer of a property purchase agreement in the UAE.
In summary, as a property owner in the UAE, you are not legally entitled to request the developer to transfer the property purchase agreement to a new buyer. However, you may be able to settle the matter amicably with the developer by obtaining a non-objection letter from them to sell the property in the DLD to the new purchaser and recover any sums paid. It’s always recommended to seek legal advice and be well aware of the laws and regulations of the UAE before making any decisions related to the transfer of a property purchase agreement.