Last updated: August 14, 2025
Dubai: Offplan related property disputes in Abu Dhabi don’t need to go to court any longer.
For property investors and developers, that will mean a lot of time and legal expenses getting spared. Now, all such disputes can be routed through Abu Dhabi Real Estate Centre under the emirate’s recently updated rules.
“ADREC’s regulatory role will add an additional layer of responsibility aimed at protecting both parties’ rights.” – Rashed Al Omaira
“Developers can request the termination of offplan Sales and Purchase Agreements (SPAs) with non-compliant buyers through a regulated process,” said Rashed Al Omaira, acting Director-General of ADREC, which will oversee the dispute resolution.
“This eliminates the need to resort to courts or arbitration provided developers follow the approved rules and mechanism through ADREC before termination can take place.”
How will new rules impact Abu Dhabi offplan investors?
Property investor rights are also simultaneously taken care off. “The new procedures safeguard the buyer’s rights before the termination,” said Al Omaira.
“The termination of the SPA shall be subject to verification of the developer’s compliance with the approved project completion timeline.
“The Abu Dhabi Real Estate Centre shall verify and ensure the buyer has been notified.”
Now, once the ADREC has passed a verdict, the new rule updates still ‘preserves’ the property buyer’s right to ‘resort to courts or arbitration, if deemed necessary’.
Where possible, authorities in the various emirates are channeling their real estate departments to oversee property-linked disputes where possible. The thinking is that real estate sectoral experts hear the disputes and then deliver judgements on them. And which then speeds up the entire dispute resolution process.
No ‘automatic termination’
Al Omaira emphasizes the point that an SPA will not be terminated just because a developer finds an issue with one of their offplan buyers.
“The new amendments do not imply automatic termination,” he added.
“The process of termination of offplan SPAs is subject to review by ADREC to ensure developers follow the proper regulatory procedures. And adhere to the approved timeline for project completion.
“ADREC’s regulatory role will add an additional layer of responsibility aimed at protecting both parties’ rights.”
This meant property agents had to get ‘Madhmoun’ permits before they can take on a property’s promotion. What this will do is ensure that property buyers in the emirate only get to deal with licensed operators.
“For years, we have suffered a situation where (Abu Dhabi property) listings have been duplicated multiple times, and blatantly fake and unauthorised listings were published,” said Andrew Covill, Director of Henry Wiltshire International.
“Finally, we have a system where the owner has to authorise the agent to advertise the property, via an online permission.
“The number of listings has reduced (now), which will create a better experience for property seekers. There is still some way to go to police the system further and take action against fraudulent attempts to circumvent the system.
“ADREC can plan further improvements, including broker contracts with fee agreements whereby the agent is contractually tied to the seller. This, in my opinion would be a huge step forward towards a more mature and professional market.”
