UAE Civil Code Update Mandates Stricter Liability for Real Estate Developers

The UAE has implemented a revised legal framework via Federal Decree-Law No. 42 of 2022, introducing critical changes to the UAE Civil Code that directly impact real estate developers, contractors, and investors. The updated legislation replaces the long-standing Federal Law No. 5 of 1985, refining how contractual obligations are interpreted and enforced across the national property sector. Stricter Decennial Liability Standards A central provision for real estate stakeholders is the clarification of decennial liability under Article 880. Contractors and architects remain jointly liable for 10 years for the total or partial collapse of a building, or for structural defects that compromise its stability. This liability applies even if the collapse or defect arises from ground conditions, and it cannot be waived or limited by contract. The new code maintains this rigorous standard to ensure long-term structural integrity in the UAE’s expanding urban landscape. Good Faith and Contractual Performance The updated code places renewed emphasis on the principle of "good faith" during the execution of contracts. Under the revised Article 246, parties must perform their obligations not…