Abu Dhabi now allows developers to cancel off-plan contract with buyer
New Regulations in Abu Dhabi Allow Developers to Cancel Off-Plan Contracts
Authorities in Abu Dhabi have introduced significant updates to the emirate's real estate regulations, aimed at enhancing its reputation as a global hub for property investment.
One of the most important changes grants developers the authority to cancel off-plan sale and purchase agreements if buyers fail to meet their contractual obligations—provided that specific rules and procedures are followed. This eliminates the need for court cases or arbitration, providing a quicker and more streamlined method for resolving disputes and minimizing investment risks, according to the Department of Municipalities and Transport (DMT).
These changes form part of Abu Dhabi’s broader strategy to position itself as a premier global destination for real estate investment. By fostering a sustainable and adaptable legal framework, the updates aim to support developers, protect investor rights, and accommodate future market expansion.
Key highlights of the regulatory updates include:
Unified Legal Framework:
All real estate-related activities, from property sales and registration to evaluation and management, will now fall under a single legal structure. This change brings previously unregulated professions under official supervision, improving transparency and raising overall sector standards.
Owners' Committees Replacing Owners' Associations:
Instead of Owners' Associations, the regulations now call for the formation of Owners' Committees. Their creation and operation will be guided by decisions issued by the Chairman of the DMT. These committees will have advisory and oversight roles only.
Enhanced Regulatory Oversight:
Specialized management companies will handle the day-to-day operations of jointly owned properties, helping ensure flexible regulation and long-term maintenance of shared areas and facilities.
The Abu Dhabi Real Estate Centre (ADREC) has also been empowered to oversee and maintain transparent, balanced relationships between developers, investors, and property owners.
Additionally, the revised regulations specify that the list of violations and applicable administrative fines will be determined by a resolution issued by the Chairman of the DMT, following approval from the Abu Dhabi Executive Council.
These reforms are designed to create a more accountable, efficient, and investor-friendly real estate environment, aligning with Abu Dhabi’s long-term growth objectives.