If you are asking, “what are my rights if the final apartment is smaller than the SPA floor plan,” you are not alone. Many buyers in Dubai face this concern after investing in off-plan properties. Understanding your legal position and the steps you can take is essential for protecting your investment in a high-demand market like Dubai.
Understanding the Sales and Purchase Agreement (SPA) in UAE Property Law
The Sales and Purchase Agreement (SPA) is the core legal document in any off-plan property deal in Dubai. This contract, signed between the developer and the buyer, details every aspect of the transaction, including the exact size, layout, and features of the apartment. For off-plan purchases in areas like Dubai Sports City or Jumeirah Lake Towers, the SPA serves as your primary evidence if the final delivered property differs from what was agreed.
Under UAE real estate law, the SPA is a binding document. If the apartment you receive is smaller than what the floor plan in your SPA stated, this discrepancy can have significant legal implications. Developers must deliver apartments as specified, unless otherwise allowed by a clear clause in the agreement. Material differences that negatively impact your investment can entitle you to compensation or other remedies.
Key terms like apartment size (typically measured in square feet), completion date, and variation thresholds are usually spelled out in the SPA. Make sure you review these terms closely before finalizing your purchase.
What Constitutes a ‘Smaller’ Apartment: Defining Material Discrepancies
Not every difference in apartment size will trigger compensation. In Dubai and the wider UAE, a “material discrepancy” typically refers to a difference in the built-up or net usable area that crosses a legally tolerated threshold. Developers sometimes include clauses that a variation of up to 5% is permissible due to construction realities. Any reduction beyond this is generally considered significant, particularly if the layout alters the property’s livability or value.
Material discrepancies affect your usage and the apartment’s market price. For example, a two-bedroom unit in Jumeirah Lake Towers advertised as 1,200 square feet but handed over at only 1,120 square feet represents a loss that could impact your ability to resell or rent out the property at expected rates.
Your Rights as a Buyer: Legal Recourse and Compensation Options in the UAE
As a Dubai property buyer, if your final apartment is smaller than the SPA floor plan by more than the allowed threshold (usually cited in your SPA), you have several potential rights:
1. Compensation for Loss of Area: The most common outcome is a pro-rata refund based on the AED price per square foot. For instance, if the reduction is 100 square feet and your agreed price was AED 1,200 per square foot, you may claim AED 120,000 in compensation.
2. Contract Termination: If the discrepancy is severe and materially alters the value of your property, you might have the right to terminate the SPA and recover your payments, although this is rare and subject to the contract’s terms.
3. RERA Intervention: Dubai’s Real Estate Regulatory Agency (RERA) plays an active role in protecting buyers. They can facilitate dispute resolution and enforce compensation if the developer hasn’t met contractual obligations.
Steps to Take When Your Apartment Size Differs from the SPA
1. Document the Difference: Measure the apartment and obtain an independent surveyor’s report to confirm the size reduction compared to the SPA.
2. Notify the Developer: Raise your concerns in writing and refer specifically to SPA clauses.
3. Approach RERA: If the developer does not provide a satisfactory response, file a complaint with Dubai’s Real Estate Regulatory Agency (RERA), including supporting documents and your SPA.
4. Consider Legal Action: For unresolved major disputes, consult a property lawyer for guidance on pursuing compensation or contract cancellation in Dubai courts.
The Role of RERA and Dispute Resolution in Dubai for Property Discrepancies
RERA provides a dispute resolution platform for property buyers in Dubai. Their procedures are clear, and their resources are localized for neighborhoods throughout Dubai. RERA can investigate complaints, order compensation, or in rare cases, mandate specific performance from developers. Having the SPA and written evidence at hand expedites this process.
Conclusion
If you find your final apartment is smaller than the SPA floor plan, you have clear legal rights in Dubai, including seeking compensation or, in rare cases, contract termination. Your primary tools are your SPA, documented evidence, and support from RERA. To ensure the best outcome, review all agreements thoroughly and consult a professional for serious discrepancies. Contact Danube Properties to learn more about protecting your investment in Dubai’s dynamic real estate market.
