Here is the current practice in plain terms. SPAs in Dubai usually set a grace window after the stated completion or handover date. Many contracts say 12 months. Some say 6. This is a contract right, not a statute. RERA’s 2025 framework treats delays that pass six months as actionable unless force majeure applies. Buyers should receive notices and progress updates during this time.
Do the courts allow more time? Yes, the Civil Code lets a buyer give a “reasonable” extra period or move to remedies if the default continues, and tribunals look first at the SPA wording and the record of notices.
What compensation applies after the grace period
- Liquidated damages in the SPA. Many SPAs set a daily or monthly rate once the grace window ends.
- Compensation under RERA practice. A common yardstick is 1% of the property price per quarter once the grace period lapses, subject to force majeure and evidence.
- Refund or termination. If delay persists, buyers can seek a refund with interest or terminate per the SPA and the Civil Code.
Typical grace periods in Dubai SPAs
- Standard range: 6–12 months beyond the agreed date.
- Most common: 12 months for developer delay. 30 days grace often appears for buyer payment defaults, which is a different clause.
- Trigger for claims: After the grace period ends. RERA treats 6 months past the agreed date as a threshold for action unless force majeure is proven.
Practical steps to protect your position
- Read the delay and liquidated damages clauses in the SPA. Note the exact grace length and the rate.
- Keep a clean file of the SPA, payment receipts, DLD records, and all notices or progress letters.
- Put the developer on notice in writing as the original date nears, then on the day it passes, and again as the grace window closes.
- File a complaint through the Dubai Land Department or the REST app for RERA mediation. If talks fail, escalate to court with your SPA and delay evidence.
Mini case study
A buyer’s SPA set a 12-month grace period after 30 June 2025. No force majeure applied. On 1 July 2026, the grace ended. The SPA set liquidated damages at AED 200 per day. The buyer filed with RERA using the SPA, payment plan, and developer notices. Mediation confirmed delay past grace and awarded accrued liquidated damages. The buyer held termination as a fallback if the developer missed the new completion date.
Your next move is simple. Check your SPA for the grace length and the compensation rate, set firm dates in a timeline, and serve notice now so you preserve your claim.
‘Disclaimer: This article is for general information only and does not constitute legal advice. The author assumes no responsibility or liability for actions taken based on its contents. For advice on your specific situation, consult a qualified lawyer.
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