Introduction

Many property buyers and real estate developers face various challenges during the buying and construction processes. One of these challenges is changing the size of a real estate unit after the purchase process is completed, raising questions about the rights of the buyer and the real estate developer. In this article, we will take a look at the laws and regulations related to this issue and provide expert opinions in this context. 

Laws Governing Buyer and Real Estate Developer Rights in Changing Real Estate Unit Size:

In Dubai, the rights of buyers and real estate developers in case of changing the size of a real estate unit have been regulated under Article 12 of Law No. 13 of 2008 concerning the initial real estate register. This article states that if there is an increase in the size of the sold unit, the real estate developer is not allowed to claim the value of that increase. In case of a decrease in size, the real estate developer must compensate the buyer for this shortfall unless the shortfall is not substantial. 

Scenarios of Changing Unit Size and Their Impact on Rights:

Buyer and real estate developer rights in case of changing unit size depend on different scenarios. In case there is an agreement or customary practice that regulates this matter, it is dealt with according to that agreement. If there is no prior agreement, Article 523 of the Civil Transactions Law is applied. This article determines how to compensate for increases or decreases in various situations. For example, if the sale can be subdivided without any harm, the seller can reclaim the increase in kind and cover the shortfall. There are other cases related to pricing and whether the increase or decrease requires canceling the sale or not. 

Avoiding Issues: Tips for Buyers and Real Estate Developers:

 To avoid problems related to changing the size of a real estate unit, transparency in agreements and offers made by real estate developers is crucial. Buyers should carefully review agreements and contracts and consult a specialized real estate lawyer if they are unsure. Real estate developers, on the other hand, should adhere to local laws and regulations and work transparently with buyers. 

Expert Opinions

  • Amira Saqr – Litigation Lawyer: Amira Saqr emphasizes the importance of clearly specifying buyer requirements in sales contracts and enhancing early communication with real estate developers. She encourages consulting a real estate lawyer to ensure the protection of buyer rights and avoid potential issues. 
  • Ahmed Saber – Head of Litigation Department: Ahmed Saber highlights the importance of compliance with local laws and regulations in Dubai and the necessity of a deep understanding of these laws. He encourages consulting legal experts specializing in real estate to ensure compliance and avoid tensions and disputes. 

Conclusion

Both buyers and real estate developers should be aware of their rights and responsibilities in case of changing the size of a real estate unit. Adhering to local laws and regulations is crucial to safeguard everyone’s rights and avoid conflicts and disputes.