Delay is one of buyers' biggest worries in off-plan sales: you paid part of the unit's price, planned to move in or lease it, then the date passes without handover. The implementing regulations set clear rules for this case, distinguish between delay and a troubled project, set a minimum compensation for the buyer, and provide mechanisms to rescue a troubled project. This guide explains when a developer counts as late and when as troubled, buyer compensation, how the authority handles troubled projects, and the consultant's role in spotting delay early.
When Is the Developer Late?
If the project is not completed when its period ends without a cause beyond its control. The authority may grant an additional period of no more than one year.
When Is a Project Troubled?
- If the project is not completed when its period ends, including the additional period.
- If construction work stops for more than 180 days at any stage.
Unless the developer presents a legitimate reason accepted by the authority.
Buyer Compensation for Delay
| Project type | Minimum compensation under the regulations |
|---|---|
| Developed land | No less than 2% of the sale value per year |
| Property unit | No less than the unit's market rent set by an accredited valuer |
The details are in the model contract, which includes provisions on compensation, market rent and termination. Read: The buyer's journey from contract to deed.
Handling a Troubled Project
The authority forms a specialist committee that may take measures including: appointing a qualified person to manage the relationship with the developer, examining the work of the developer, consulting office and accountant, requiring the developer to replace those responsible, disbursing from the escrow account to correct course, and bringing in a replacement developer. If amicable liquidation is not possible, the matter is referred to the competent court.
Table: Stages of the Case and What Happens
| Stage | What happens | The consultant's role |
|---|---|---|
| Slowing progress | Deviation from the schedule | Flagging it in periodic reports |
| Period exceeded | Delay that may incur compensation | Documenting the actual progress percentage |
| Additional period | Up to one year by the authority's decision | Following the recovery plan |
| Troubled | The authority's committee intervenes | Providing technical data for the decision |
The Consultant's Role
- Spotting delay early in project progress reports. Read: Progress reports in Wafi.
- Notifying the authority of the developer's breach of its obligations within 5 working days.
- Documenting the actual progress percentages on which decisions are based.
Read: How the consultant prevents disputes and delays and The escrow account and buyer protection.
For the Developer: How to Avoid Delay
- A realistic schedule in the feasibility study. Read: Engineering file review.
- A complete engineering file that prevents changes during construction.
- A clear construction contract and effective supervision. Read: Causes of project delays and cost overruns.
Frequently Asked Questions
Is the buyer automatically entitled to compensation?
Compensation applies to delay without a cause beyond the developer's control, at a minimum set by the regulations, with details in the contract.
What is a replacement developer?
One of the measures the authority's committee may take to complete a troubled project, and the regulations require contracts to include an acknowledgement of this.
Is the buyer's money lost in a troubled project?
The money is in the escrow account, and the authority's committee may disburse from it to correct course or complete the project.
How do I know the project is late?
From the progress reports made public in the projects database.
Can the contract be terminated?
The model contract includes termination provisions for developer delay.
How Abak Engineering Consultancy Helps
Abak is an accredited engineering office that prepares progress reports and links payments to the escrow account for Wafi projects, flags any deviation from the schedule early, and documents actual progress percentages. See our progress reports and escrow service, or contact us.
Regulatory information is based on the Balady platform and the Ministry of Municipalities and Housing, and procedures may be updated by the competent authority. Last reviewed: October 2026.