April 29, 2017



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Developer Betrayed Contract by Not Building Properties

Question:I bought real estate units but the developer has not built them and did not deliver under the terms and conditions of the contract. I am planning to file a case as the jurisdiction clause in my contract says I can lodge a dispute in any arbitration centre. I heard that the arbitration process takes only six months. Is it true?

Answer: In accordance with Article 42 of the Federal Law No. 6 of 2018 On Arbitration, the arbitration is be completed within the time limit agreed by the parties in the contract. If the parties have not agreed on a specified time limit for dispute resolution or a method to determine this date, the decision will issued by the arbitral tribunal within six months from the date of the first hearing of the arbitration proceedings. This period may be extended for up to six additional months by the arbitral tribunal, unless otherwise agreed by the parties.

In the event the award is not issued within the time period as set out above, the party may approach the court. The court may pass orders giving additional time to the tribunal to pass its order or ending the arbitration altogether. An order ending the arbitration proceedings will allow a party to file its case with the competent court instead.

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I am a small owner who purchased a studio from Danube Properties in May 2016 and the anticipated possession date was September 2018 followed by 1 year Maintenance period for the developer to reinstate the property and provide the possession. This is also slipped in Sept 2019, Contract says developer has 3 more months to complete the contract or else I have full right to cancel the unit. I stopped their monthly payment in May 2019 as discussed by Danube Staff to pay the balance dues on possession. TILL DATE THE DELVELOPER IS FAILING AND NOT PROVIDING POSSESSION...I am a small owner with a studio...Do not know if going legal is a way out. I just need my paid amount to be released from the developer...can you advise how can you help and what will be your fees if I have to proceed with it. Need assurance and time frame for proceeding the same.
Samir Mulla
With reference to your concern, there are several important details which we should be aware of before giving you any legal advice such as the current status of the property, the dispute resolution procedure, delay in payments, do you wish to terminate the project or otherwise and to review the sale and purchase agreement. In this regard, it is advised to visit for a consultation meeting or to arrange a consultation call with one of our legal consultants.

Please feel free to revert to us if you are interested to proceed with the legal consultation and I would be happy to arrange it for you.   Dr. Hassan Elhais
A flat was purchased from DAMAC PROPERTIED and the handover of possesion of flat as per contract, was to be handedover in May 2019, but till date the flat is not handedover, the 100% payment is made, can I go legal help for the delay, as we are paying interest to the bank, for the loan taken.
Ali Mohammad
So that we are better placed to advise you on our engagement terms and how best to proceed further, I request you to share the following with us:

1. Sale Purchase Agreement
2. Statement of Account
3. All letter and email correspondence including payment receipts.
4. All agreements, and amendments to the agreements.

Once we have reviewed the aforesaid documents, we will share our feedback with you on our engagement terms and the legal options at your disposal. Should you have any questions, please do not hesitate to contact us.   Dr. Hassan Elhais

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