This expert insight has been exclusively written for readers of EmiratesReporter.com by Ben Crompton, Managing Partner of Crompton Partners. A well-known real estate authority in Abu Dhabi, Crompton brings over a decade of leadership experience in property investment, sales, and leasing. With a law degree from the University of Cambridge and a strong presence in UAE media, he offers clear, practical guidance on the legal safeguards and rights available to off-plan property buyers in the emirate.
Abu Dhabi, UAE, 01 APRIL 2026- Off-plan property purchases – where buyers invest in real estate before construction is completed – are a significant part of modern real estate markets. While they offer opportunities such as lower prices and flexible payment plans, they also carry risks.
To address these concerns, legal frameworks have been established in Abu Dhabi to protect buyers and ensure accountability from developers. Law No.3 of 2015 governs these protections in the ADREC area in Abu Dhabi (please note that a different law applies in the ADGM area – Maryah and Reem Islands).
Buyer’s right to terminate the Sale and Purchase Agreement (SPA)
Article 17 focuses on the buyer’s rights in the event of a breach of the SPA by the developer. The SPA is a critical document that outlines the obligations of both parties, and its proper execution is fundamental to the transaction. Under this article, a buyer has the right to terminate the SPA if the developer commits a major breach, provided that the developer is given reasonable notice to rectify the issue. This ensures fairness by allowing developers an opportunity to correct their mistakes before more severe consequences are imposed.
The law gives examples of what constitutes a “major breach.” For instance, if the developer fails to provide the buyer with the SPA, this undermines transparency and contractual certainty. Similarly, payments must be linked to construction progress; if they are not, buyers may be exposed to financial risk without corresponding development milestones.
Another serious breach occurs when developers significantly alter agreed specifications, as buyers rely on these details when making purchasing decisions. Finally, if the property suffers from major construction defects rendering it unsuitable for use, this represents a fundamental failure to deliver what was promised. In all these cases, the buyer is entitled to terminate the agreement, reinforcing the principle that developers must adhere strictly to their commitments.
Buyers rights where the start of the project is delayed
Article 25 addresses delays in commencing a project. Timeliness is a crucial aspect of off-plan developments, as buyers often plan their finances and living arrangements around expected completion dates. If a developer fails to begin the project on time, at least 5% of the buyers may file a complaint with ADREC. Should ADREC determine that there is no acceptable justification for the delay, it has the authority to cancel the project altogether. In such cases, the escrow account – where buyers’ funds are held – is distributed among the buyers, offering financial protection and minimizing losses.
Buyers rights where the project delivery is delayed
In addition to delays in commencement, Article 25 also deals with delays in project delivery. If a developer exceeds the agreed delivery timeline by more than six months, ADREC may impose fines. However, the law recognizes that not all delays are within the developer’s control. Exceptions are made for circumstances beyond their control, such as force majeure events. This balanced approach ensures that developers are held accountable while also acknowledging legitimate challenges that may arise during construction. The Unified SPA
Failure to complete a project
Article 26 provides solutions for more severe scenarios, specifically when a developer fails to complete a project altogether. In such cases, the Department may intervene to ensure the project’s completion by appointing another developer.
This mechanism aims to protect buyers’ investments and ensure that projects are not abandoned indefinitely. If, however, no viable solution is found within six months, the law mandates the distribution of the remaining funds in the escrow account to banks and buyers. This ensures that all stakeholders recover as much of their investment as possible.
The unified SPA on seller default
The ADREC Unified SPA states that if the developer fails to deliver the unit on the handover date then the Purchaser should send a written notice to them asking to rectify this. If the developer fails to handover the unit within 120 days (four months) of receipt of the notice (not of the handover date) then the purchaser can terminate the SPA after obtaining a court order.
Most buyers will be happy with their units and accept that there will be certain delays and issues from the Developer. If they are happy with their choice and if the default from the developer isn’t too egregious, they will be happy to wait.
However, if the default is significant or for some reason the buyer wants to exit their investment then these provisions can come in handy and be used to great effect. Some do require the compliance of ADREC in the request, which adds a layer of uncertainty, but we look forward to seeing how these issues are dealt with in the future.
– Ben Crompton, Managing Partner, Crompton Partners, for EmiratesReporter.com
