New ADREC Framework Streamlines Off-Plan Property Dispute Resolution

In a significant step towards strengthening Abu Dhabi’s real estate sector, the Abu Dhabi Real Estate Centre (ADREC) has launched a new framework for resolving off-plan property disputes. This initiative introduces a streamlined and transparent alternative to lengthy court proceedings, offering greater efficiency and clarity for both developers and buyers. The reform forms part of the emirate’s broader legislative update under Law No. (3) of 2015 on Real Estate regulation.

The framework aligns with ADREC’s wider strategy to boost market confidence, encourage foreign investment, and bring Abu Dhabi’s real estate governance in line with global best practices.

A New Path to Resolution

Under the previous system, developers were required to initiate lengthy court processes to terminate a Sales and Purchase Agreement (SPA) when a buyer defaulted on payments. The new ADREC mechanism introduces a more efficient path:

• Developers may submit a termination request directly to ADREC.
• The process is not automatic and is subject to strict oversight.
• Developers must demonstrate full compliance with contractual and regulatory obligations, including adherence to approved project timelines.
• ADREC acts as a neutral regulator, verifying evidence, ensuring the buyer has been properly notified, and supervising the termination request.

This mechanism reduces delays while maintaining fairness and accountability for all parties involved.

Protecting Buyer’s Rights

While the framework offers developers greater procedural clarity, it also incorporates robust protection for buyers:

• ADREC’s review process is designed to prevent arbitrary or unfair terminations.
• Buyers retain the right to challenge ADREC’s decision and pursue remedies through courts or arbitration.
• The law requires developers to provide notice and allow buyers an opportunity to remedy defaults before termination can proceed.

This dual-track system ensures buyers continue to enjoy full access to judicial recourse, thereby preserving investor confidence and strengthening the integrity of Abu Dhabi’s real estate market.

The Broader Impact

The introduction of this dispute resolution framework is one of several strategic reforms headed by ADREC:

• Madhmoun (Verified Listings): A government-run Multiple Listing Service (MLS) that mandates property listings be verified, reducing fraudulent or duplicate advertisements and ensuring transparency in the market. Madhmoun permits have become mandatory for all new listings, with revalidation required.
• Licensing Expansion: New requirements mandate licensing for all real estate professionals in Abu Dhabi, further enhancing professional accountability.
• Market Governance: These reforms work collectively to promote transparency, curb malpractice, and align Abu Dhabi’s property ecosystem with international standards.

The overarching goal is to create a more mature, secure, and transparent property market. For expatriates and foreign nationals living in Abu Dhabi, these reforms will provide an added layer of protection, reduce risks of fraud, and make property transactions more reliable. For developers, investors, and buyers alike, the changes mark a significant step toward a balanced and trustworthy real estate environment.