The UAE’s booming real estate market has inevitably led to an increase in disputes among developers, buyers, tenants, landlords, and brokers. While the UAE legal system offers multiple avenues for dispute resolution, navigating these paths can be complex. This article outlines the common types of real estate disputes, the available resolution mechanisms, and practical steps to protect your rights, whether you’re an investor, developer, or end-user.
Common Types of Real Estate Disputes in the UAE
Real estate disputes in the UAE often arise due to contractual breaches, construction delays, and tenancy disagreements. Key categories include:
- Developer vs Buyer: Disputes pertaining to project delays, quality defects, failure to deliver, breach of sale-purchase terms etc.,
- Landlord vs Tenant: Disputes relating to evictions, rent increases, maintenance issues, and deposit return, etc.,
- Investor vs Broker: Disputes pertaining to misrepresentation, commission disputes, unauthorized deals, etc.,
- Co-owners/Strata: Disputes related to service charges, voting rights, and mismanagement by the owners’ association, etc.
This blog is a part of our Legal & Regulatory Framework in UAE Real Estate blog post.
Applicable Laws Governing Real Estate Disputes
Dubai
- Law No. 13 of 2008: Regulates interim real estate registration.
- Law No. 26 of 2007 (amended by Law No. 33 of 2008): Governs landlord-tenant relationships.
- Law No. 6 of 2019: Regulates jointly owned property.
Abu Dhabi
- Law No. 3 of 2015: Covers regulation of real estate sector in the Emirate.
- Law No. 20 of 2006: Organizes landlord-tenant relations.
- Strata Law (Law No. 3 of 2015): Applies to jointly owned properties.
Dispute Resolution Mechanisms
Rental Dispute Settlement Centre (RDSC) – Dubai
Established under Decree No. 26 of 2013, RDSC handles:
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- Rent increases
- Evictions
- Lease renewals
- Maintenance and deposit issues
Process:
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- File online via DLD or in-person.
- Conciliation hearing within 15 days.
- Judgment issued (appealable in certain cases).
Civil Courts deals with
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- Developer-buyer disputes
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- Strata-related cases
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- High-value or complex real estate matters
Procedure:
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- Mandatory conciliation before trial (Dubai).
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- Civil claims filed in Dubai Courts or Abu Dhabi Courts, depending on property location.
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- Appeal routes: Court of First Instance → Appeal → Cassation.
Arbitration (Optional Clause in Contracts)
Arbitration is gaining popularity, particularly in high-value sales contracts or foreign investor agreements.
- Venues: DIAC, ADCCAC, DIFC-LCIA, ICC.
- Enforceable under: UAE Arbitration Law (Federal Law No. 6 of 2018).
Real Estate Disputes in Free Zones (DIFC and ADGM)
DIFC
- Common law jurisdiction.
- Independent legal system and court.
- Strong enforcement mechanisms, especially for international parties.
ADGM
- Also follows English common law.
- Civil and commercial real estate contracts can include ADGM arbitration or court jurisdiction clauses.
Benefits:
- Confidential proceedings.
- Faster timelines.
- Recognition of foreign judgments.
Tips for Preventing and Managing Disputes
| Best Practice | Explanation |
| Use detailed written contracts | Clearly define rights, obligations, and dispute resolution clauses. |
| Verify developer credentials | Use DLD and RERA-approved lists. |
| Register lease agreements | Mandatory in Dubai (Ejari) and Abu Dhabi. |
| Maintain written communications | Useful as evidence in court or RDSC. |
| Include arbitration clauses (if needed) | Especially in high-value or cross-border transactions. |
Key Takeaways
With a strong legal framework and multiple dispute resolution channels, the UAE offers efficient mechanisms to address real estate disputes. However, prevention remains the best strategy — clear contracts, compliance with laws, and informed legal advice can save time, money, and stress. For investors and property users, understanding how the system works is essential to protecting your property rights in the UAE.
