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Discuss this article (6 Comments)Dubai poised to introduce standard property contract
by This email address is being protected from spam bots, you need Javascript enabled to view it on Monday, 25 May 2009
UNIVERSAL CONTRACT: Dubai's land department is to introduce a standard contract to stop disputes over misleading small print.
A universal property contract that clearly sets out the terms for both buyers and sellers is to be introduced to Dubai to stop disputes over misleading small print, it was reported on Monday.
The standard contract, which will be used for all property sales, has been drawn up by the Dubai Land Department and is waiting for approval, according to Emmad Eldin Farouq, senior legal advisor at the body.
The move would reduce the incidence of buyers and developers back-tracking on signed deals, as the contracts would be more transparent prior to signing, he added in an interview with UAE daily Gulf News.
"The contract is ready and we are waiting for directions," said Farouq said.
"The contract will not be changed if it is completed or uncompleted. For any contractual agreement, it must be simple and clear and transparent. There is too much small print in contracts now.“
However, although the main points of the contract will be the same, ther will be room for other clauses, assured Mohammad Sultan Thani, assistant director-general of the land department.
"In any contract, there is a chance a developer can add to it because different developments have different rules and regulations but the basic contract will stay the same."
Lawyer Michael Lunjevich, partner at Hadef and Partners, added: "The standard contract is for finished properties between the buyer and the seller, so the secondary market. But you can't legislate everything, you need an element of freedom in a contract.
"So it will have standard terms in line with market norms and then any changes will go to a separate [section] to make it fair," While having one basic contract will certainly make life easier for buyers and developers, it will also reduce the number of disputes in the market.
Despite the tightening up of contracts the land department and Dubai's Real Estate Regulatory Authority (Rera) say the onus rests with the buyer to make sure they read the contract in full before signing.
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Still can't trust them
Posted by Simon, Abu-Dhabi, UAE on Tuesday 26 May 2009 at 08:57 UAE time
I Still can't trust those who offered people a 99 year lease is they bought property and then deny they ever said it. Dubai and its government marketed the whole concept and the developers published it to the buyers. And even now if you look at the article above it says "the onus rests with the buyer".... Everyone knows this is a desperate attempt to get people to buy again. Still has a fishy smell to it and it STINKS.
Posted by Simon, Abu-Dhabi, UAE on Tuesday 26 May 2009 at 08:57 UAE time
I Still can't trust those who offered people a 99 year lease is they bought property and then deny they ever said it. Dubai and its government marketed the whole concept and the developers published it to the buyers. And even now if you look at the article above it says "the onus rests with the buyer".... Everyone knows this is a desperate attempt to get people to buy again. Still has a fishy smell to it and it STINKS.
Comment on standard property contract
Posted by Mohammad Khan, Abu Dhabi, UAE on Monday 25 May 2009 at 19:33 UAE time
Every word of Paul's comments is correct. I fully agree with his comments. Rera knows well that now what all buyers want but still is delaying cancellation of yet-to-start-construction projects, on one pretext or the other: our commettee will review each project, 75% buyers should be asking for ...... etc. etc.
Posted by Mohammad Khan, Abu Dhabi, UAE on Monday 25 May 2009 at 19:33 UAE time
Every word of Paul's comments is correct. I fully agree with his comments. Rera knows well that now what all buyers want but still is delaying cancellation of yet-to-start-construction projects, on one pretext or the other: our commettee will review each project, 75% buyers should be asking for ...... etc. etc.
Consideration
Posted by Sam on Monday 25 May 2009 at 15:40 UAE time
I hope this uni-contract is drafted with the consideration that most (if not all) tenants are individules and families that do not own any homes or properties in this place.
Sadly, and seeing how the rent committee always gives tenants the old move-out-if-you-like-the-rent routine, i am doubtful that will happen.
Posted by Sam on Monday 25 May 2009 at 15:40 UAE time
I hope this uni-contract is drafted with the consideration that most (if not all) tenants are individules and families that do not own any homes or properties in this place.
Sadly, and seeing how the rent committee always gives tenants the old move-out-if-you-like-the-rent routine, i am doubtful that will happen.
A UAE Issue, not just Dubai
Posted by Joe, Dubai on Monday 25 May 2009 at 13:34 UAE time
I believe there should be a standard UAE contract which applies to all Emirates. Like the residence visa, the contract issue should also be handled at the Federal level.
Posted by Joe, Dubai on Monday 25 May 2009 at 13:34 UAE time
I believe there should be a standard UAE contract which applies to all Emirates. Like the residence visa, the contract issue should also be handled at the Federal level.
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