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The construction of the building was never completed, can I be refunded for a flat I bought?


I invested in a construction project by purchasing a flat for myself in UAE in 2008. Construction of the building halted in early 2009. Am I entitled to get a refund for my money under the terms of the contract?

Answer: If construction stops for longer than six months, which seems to be the case for you, and if the anticipated completion date and the grace period have expired, you should have the right to request termination of a signed contract with a seller and request a full refund of the amount paid by you along with 9 per cent interest estimated from the date of filing a case until the date of the full payment is made by the seller.

Prior to deciding if you should file a case, it is advised to check the jurisdiction clause in your contract to find out if it is agreed between both parties whether the dispute, if any, shall be considered by Arbitration or through the local courts.

It could be worth checking with the Land Department if the project has been cancelled as, if it is cancelled, you might not be able to file a case at all. You may submit the request for refund of your amount through the proper legal channels then.

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