Question: Two years ago, I purchased a property from an off-plan developer in Dubai and paid about 60 per cent of the property value. According to the law, what are the reasons for which the buyer has the right to request cancellation of the property purchase agreement? Is a change in the property’s area good enough a reason to do this?
Answer: Article 20 of the of the Executive Council Resolution No. (6) Of 2010 approving the implementing bylaw of Law No. (13) of 2008, regulating the Interim Property Register in the emirate of Dubai, states that the purchaser may apply to the relevant competent court to terminate the contractual relationship in certain cases if the developer makes material changes to the specifications in the agreement; or any other case that may require termination of the agreement in accordance with the general principles of law.
If one of the contractual parties does not abide by his obligations, the other party has the right to cancel the contract according to Article 272 of the Civil Transactions Law which states that in bilateral contracts, if one of the parties does not perform his contractual obligations, the other party may, after serving a formal notification to the debtor demand the performance of the contract or its cancellation.
Regarding a change in the property’s area, it is definitely considered a reason to cancel the purchase agreement,
Article 13 of the Executive Council Resolution No. (6) Of 2010 obliges the developer to indemnify the purchaser if the area of the Real Property Unit is less than the agreed area by more than five per cent of the net area of such a unit.
Moreover, Article 523 of the Civil Transactions Law No. 5 of 1985 gives the purchaser the right to cancel the sale, unless the difference is trifle and it does not contradict the purpose sought by the purchaser if the increment or deficiency add to the obligation of the purchaser beyond what he has intended to purchase or change the nature of the transaction.
