Unified UAE Legislation Database

FAQ: Is the real estate developer liable for delay damages if the unit is delivered after the initially estimated completion date, but within the extended period allowed by the contract?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Answer: No. If the developer exercised their contractual right to extend the completion period with notice and delivered the unit within the agreed extended period, and the delay is minimal and justified by the nature of real estate development, they are not liable for delay damages.

 

Legal Basis:

Article 246, 257, 272 of Civil Transactions Law (Federal Law No. 5 of 1985):

 

Relevant Case Law:

Case No.458 of 2025 / Dubai Court / Real Estate