UAE Property: 'When does a Dubai off-plan property delay become a red flag?'

For those considering purchasing an off-plan property in Dubai, it's crucial to understand when a delay becomes a cause for concern. The key to determining this lies in the Sale and Purchase Agreement (SPA) provided by the developer. The SPA outlines the anticipated completion date, the contractual grace period, and the circumstances under which extensions can be made.

Developers are allowed to extend the completion date by up to 12 months, so missing the projected handover date does not automatically indicate a breach of contract. However, if the developer fails to provide a clear revised completion schedule and the delay significantly impacts the buyer's ability to move into the property, it may be time to seek legal advice.

In the case of a tenant being present in the property, the buyer must understand that inheriting the existing tenancy does not automatically terminate the tenancy. The new owner assumes the obligations of the previous landlord, including the right to occupy the property. If the buyer is planning to move in shortly after purchase, they should be aware that they may have to serve a 12-month notice to the tenant, as per Dubai's Rental Disputes Centre (RDC) guidelines.

Before finalizing the purchase, it's advisable to review the eviction notice, its issuance, serving process, and the required notice period. If the purchase is contingent on obtaining vacant possession, the buyer should ensure that the notice period aligns with their intended move-in date. This due diligence can help prevent unforeseen complications and ensure a smooth transition into the new property.