Help with Termination of Contract Rera Dubai Law

The Dubai Real Estate Authority (Rera) is the official arbiter of an SPA and termination of that contract. Your developer should notify you that your SPA has been registered with Rera and your payments are held in an Escrow account.

The process for terminations for contracts entered into after 31 August 2008 is that the termination notice will need to be served by the Land Department. The reason for this is that the Land Department would like to have the opportunity to mediate between the parties and settle the matter at an early stage if possible.

Law No. (13) of 2008 Regulating the Interim Real Estate Register in the Emirate of Dubai states that;

1. In the event that the purchaser defaults on any term of the contract he made with the developer for the sale of the Real Estate Unit, the developer should notify the Department accordingly and the Department will then give the purchaser 30 days notice to fulfill his contractual obligations, by hand, registered post or email.

2. If at the end of the period referred to in item 1 of this Article the purchaser has not fulfilled his contractual obligations, the developer may cancel the contract and repay the purchaser his money less a deduction that does not exceed 30% of the monies paid by the purchaser.

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