What the new UAE laws say about buyers' rights: Defect claims extended

Abu Dhabi: The UAE has strengthened buyer protections under its new Civil Transactions Law, introducing clearer rules for sale contracts, expanding remedies for defective goods, and extending the time limit for filing claims related to hidden defects.

The reforms, announced on January 1, 2026, are aimed at modernising sale transactions, reducing disputes and aligning the law with contemporary commercial practices.

Under the updated law, provisions governing sale contracts have been clarified and strengthened, including clearer regulation of sale by sample and sale by model.

The law also provides greater protection for people lacking full legal capacity, particularly in cases of grossly undervalued real estate sales. The new law also includes enhanced rules governing latent (hidden) defects. The changes are designed to make sales transactions fairer and easier to enforce.

Under the new law, buyers may reject the goods, accept them with a price reduction, or request a defect-free replacement. These options give buyers more flexibility and clearer legal backing when goods or property do not meet expectations.

Defect claims extended:

The law also extends the limitation period for claims related to latent defects. Previously, the law gave buyers six months from delivery to claim defects. It is now one year from delivery. A longer period may still apply if a contractual guarantee is agreed, as stated in the official announcement.

Dr Binisaroj, Senior Legal Consultant at Khalifa bin Huwaidan Advocates, said the reforms significantly improve buyer confidence. “Buyers will also feel better protected. Under Article 555 of the old Civil Transactions Law, claims relating to hidden (latent) defects were not admissible after six months from the date of delivery, unless a longer guarantee was agreed,” she said.

“The new law extends this limitation period to one year, and expands the remedies originally regulated under Articles 543 to 549, allowing buyers to reject the goods, seek a price reduction, or request a defect-free replacement. These are sensible changes that reflect modern expectations of fairness in commercial dealings,” she added.

For consumers, the changes mean: more time to discover hidden defects, clearer legal rights when purchases go wrong, and stronger protection in high-value transactions, including real estate.

For businesses, the updated rules encourage higher-quality standards, reduce uncertainty in sales disputes, and require clearer disclosures and stronger compliance.

While sellers face stricter obligations, the reforms also create clearer legal boundaries, helping reduce prolonged disputes.

The sale contract reforms form part of a broader update to the Civil Transactions Law, aimed at improving clarity, fairness and trust in the legal system.

Dr Binisaroj said the changes reflect a confident and evolving legal framework, “Taken together, these reforms show a legal system that is growing with confidence. The new Civil Transactions Law does not abandon tradition; it builds on it.”

She added, “It respects Sharia, strengthens judicial trust, protects the vulnerable, and supports economic activity, all while speaking a language that is clearer and more in tune with today’s world.”