“Developers can request the termination of offplan Sales and Purchase Agreements (SPAs) with non-compliant buyers through a regulated process,” said Rashed Al Omaira, acting Director-General of ADREC, which will oversee the dispute resolution.   

“This eliminates the need to resort to courts or arbitration provided developers follow the approved rules and mechanism through ADREC before termination can take place.”

How will new rules impact Abu Dhabi offplan investors?

Property investor rights are also simultaneously taken care off. “The new procedures safeguard the buyer’s rights before the termination,” said Al Omaira.  

“The termination of the SPA shall be subject to verification of the developer’s compliance with the approved project completion timeline.

“The Abu Dhabi Real Estate Centre shall verify and ensure the buyer has been notified.”

Now, once the ADREC has passed a verdict, the new rule updates still ‘preserves’ the property buyer’s right to ‘resort to courts or arbitration, if deemed necessary’.

Where possible, authorities in the various emirates are channeling their real estate departments to oversee property-linked disputes where possible. The thinking is that real estate sectoral experts hear the disputes and then deliver judgements on them. And which then speeds up the entire dispute resolution process.

No ‘automatic termination’

Al Omaira emphasizes the point that an SPA will not be terminated just because a developer finds an issue with one of their offplan buyers.

“The new amendments do not imply automatic termination,” he added.

“The process of termination of offplan SPAs is subject to review by ADREC to ensure developers follow the proper regulatory procedures. And adhere to the approved timeline for project completion.

“ADREC’s regulatory role will add an additional layer of responsibility aimed at protecting both parties’ rights.”

Abu Dhabi’s updated real estate rules

In the recent update to its real estate rules, Abu Dhabi also brought in tightened requirements for property advertisements and how brokers can market these.

Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.