New Dubai real estate law backed by industry experts

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Dubai is set to introduce a new real estate law to help protect the rights of property investors, a move which has been welcomed by the emirate’s real estate and legal professionals.

The Dubai Land Department will soon introduce the Tanweer legislation and while the exact details of the new law have not been revealed, experts have welcomed the move as a positive step for the market and for safeguarding investors’ rights.

Dubai was hit hard by the property downturn, which hit the region in late 2008 and early 2009, with prices dropping by up to 60 percent and some projects being stalled or cancelled.

With liquidity tight, this led to stand-offs between investors and developers over missed handover dates and delayed construction schedules.

With dozens of new projects announced in recent months, the new law is designed to restore confidence in the sector going forward.

“Detail on the content of this law is currently minimal but any law that strives to provide more clarity around the developer / investor relationship can only have a positive effect on the Dubai Real Estate Market,” said Steven Morgan, head of the Cluttons UAE real estate agency.

“Dubai is a now a world-class city on many levels and the real estate product now offered is on a par with the best in the world, any move to bring the somewhat antiquated legal system in line with the sophistication of the product is welcome.”

Joe Durkin, a partner at Davidson & Co has led some of the most high-profile disputes in the region, including the $250m Heart of Europe project on Nakheel’s The World, and he believed the new legislation was a step in the right direction.

“The details of the Tanweer property law are yet to be released. It is unclear whether or not the law will have any retrospective effect or if it will affect contracts which are sub judice. A country which has a good judiciary and clear and transparent laws relating to real estate transactions and the workings of the regulatory environment will of course be more attractive to inward investment,” Durkin said.

“If the Tanweer law can reduce the number of disputes being referred to arbitration or pursued through the courts system by setting down a clear framework, this is welcomed,” he added.

The Tanweer law is not the only new piece of legislation set to help bring more clarity to the real estate sector.

In relation to disputes with tenants, a first for the UAE has seen the introduction of United Insurance’s tenant’s legal insurance policy, said Shaun Brook of Cavendish, a specialist firm of International insurance consultants.

“The purpose of the policy is that in the event of a dispute arising between a tenant and a landlord under the terms of a lease, the tenant will have access to a leading firm of UAE lawyers who will take up their case against the landlord with a view to amicably resolving the dispute through mediation or, if necessary, by use of the UAE courts. The policy also covers Death and/or Permanent Disability, which costs AED600,” he added.

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Please post responsibly. Commenter Rules

Posted by: AAMIR

What is protection for the investor in the presence of local sponsor who is having 100% ownership of the lience and you act only manager with no legal right and invest as much as u can from your poket and one day sponsor wakesup and says its my business and u r no where inspite of investing all money
Is there any law to protect the investor ...no if some one know pls
drop e mail..or comment

Posted by: Jerastine

I too have been waiting for my property for over 5 years now. Who would be an ideal person to talk to? Who has the answers?

Posted by: Peter Hudson

RERA is a joke and so are the (non existant) safeguards. Thousands of investors have still not received refunds for unbuilt projects like DANA GARDENS by Ali Moosa. While RERA is good at making a noise once in a while, they have done precious little to bring errant developers or protect customers who can do little but wait in the LOBBIES of RERA and munch OREO biscuits!
Shame!

Posted by: Businessexecutive

Peter Hudson, if you are Dana Gardens investor then please contact me at businessexec5@hotmail.com

Thanks

Posted by: Manoj Sabharwal

We have had 5 full years to conceive, enact and implement "new" real estate regulation.
And what were we doing ??? Waiting for the market to get all heated again and then think of something !!!
And think of what .... that we don't know but the "experts" are very happy and welcome the new laws !!!
Are we missing something here ???

Posted by: Red Snappa

Remarkable, when is a law not a law? Answer when you can't see it. ' The backing of industry experts' should that be considered a factor which adds the weight of even-handed sanity to an ostensibly non-existent regulation?

Why sure I'll buy into that my property buddies, as long as is it ensures that every rogue developer who has ever reneged on a sales and purchase agreement, i.e. taken money and never built a thing! - is legally screwed to the floorboards to return my funds with interest.

Ah is that not the case, then nothings changed, a monster flight of capital may not appeal of course!

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