The Dubai Land Department (DLD) has circulated a new investor protection law which aims to protect the rights of property investors in Dubai. A move well welcomed by the emirates industry professionals and legal experts and expected to restore confidence in Dubai real estate sector.
The coming law aims to improve the clarity and fairness of the contractual relationship between the developers and the buyers. Keys points are to be pointed out such as:
- Buyer’s rights for compensation in case of delivery of defective property or in case the developer fails to deliver a property on time.
- Contract cancelation conditions.
- Common areas management agreements.
- Obligation to communicate the Project advancement, date of completion.
- Service fees, common areas and facilities.
- Contracts written in both English and Arabic.
Additionally the draft aims to establish a fair transaction between developers and investors. In this spirit it prevents investors from selling or marketing reserved properties and requires the registration of their purchase agreements with the Land Department.
Mohammed Al Suwaidi, Managing Partner of Al Suwaidi & Company said: “Any initiative that aims to clarify the duties and obligations of the contracting parties is a welcome step forward sustaining the real estate sector growth”.
“A clear and sophisticated contract can reduce the frequency of disputes pursued through the courts or referred to arbitration and doubtless guarantee the rights of both parties when engaging such resolution disputes”. He added.