Unified UAE Legislation Database

FAQ: Can a buyer terminate a property Sale and Purchase Agreement (SPA) in Dubai if the delivered unit’s area is significantly less than the area stated in the contract?

Status

In force

Issuing Authority

Effective date

XX.XX.XXXX

Official Link

https://

Answer: Not necessarily. A shortfall in area, even if exceeding 15%, does not by itself justify contract termination unless it is proven that the deficiency makes the property unusable for its intended contractual purpose. Otherwise, the buyer’s remedy is limited to compensation or price adjustment.

 

Legal Basis:

Article 523 of UAE Civil Transactions Law (Federal Law No. 5 of 1985 Civil Transactions Law of the United Arab Emirates State)

 

Relevant case law:

Case No. 322 of 2025 / Dubai Court / Real Estate Appeal