Off-Plan Property Dispute

The Claimant
Our claimant purchased four properties sold off-plan, from a renowned developer in Abu Dhabi. The purchaser had performed its obligations under the sale and purchase agreement (SPA) and had fully paid for the units, in line with the contracted payment schedule.

The developer had failed to complete the units as per the completion dates set out in the SPA.

Our Approach
The seller argued that the completion of the building was linked to the development of the master community. The seller further argued that an event of force majeure had occurred, waiving its liability.

The Outcome
Upon our review of the documents regarding the acquisitions, we uncovered clear contractual clauses entitling the purchaser to a refund.

The Tribunal decided, in line with Articles 272, 273 and 274 of the UAE Civil Code, to terminate the SPAs and have the monies refunded to the purchaser.

The purchaser was awarded an amount in excess of AED 8 million.