Thursday, July 10, 2008

Dubai to house new property court

More transparency likely in property-related matters, say developers

Dubai will house a new realty court which deals exclusively with property-related cases from September, announced a top official at the Dubai Courts.

The Judge Mohammed Yousuf A Sulaiman, the Deputy Director for Dubai Courts and Cassation Court's Senior Judge, has revealed that the Property Court will be established as per Law No.1 of year 2003, under the main section of the court called 'The First Instance Court.'

It will include jurisdictions over all properties in Dubai, except those associated to Dubai International Financial Center, which has its own judiciary system.

Yousuf said this is being done as per the directives of H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE, and Ruler of Dubai. Following the success of the Labour Court, this new court specializing in all property related matters is being launched.

The Chief of the Court of First Instance (Properties Court), Judge Abdul Qadir Mosa, will be responsible for setting up the property court.

At present all property-related cases are being tried under the Civil Law. In case of any new law being enforced within the jurisdiction of the property court, the law will override the Civil Law for all property cases, said the judge. The judgment passed in the property court, can be confronted in the Appellate Court.

There will be a minimum of ten judges in the property court, and the numbers would vary depending on the number of property-related cases.

Yousuf said that currently there are no cases pertaining to real estate issues that are pending at the Dubai Courts. The Dubai Courts do not hear rental disputes, which is solely being dealty by the Rent Committee of Dubai Municipality.

The establishment of this property court is expected to bring more transparency among developers in Dubai, while investors will continue to be inclined towards taking risk, agreed developers and analysts.

Following the announcement of establishment of the court, the Chief Executive of Amlak Finance, Arif Alharmi, commented that the establishment of the property court is a positive development as real estate market is heading towards maturity, and the value of transactions are on the rise.

Arab Richardson, the Nakheel Spokesperson, said that this court would help in efficiently dispensing matters pertaining to property ownership and mortgage enforcement. This move marks a part of futuristic development of legal process pertaining to property industry.

The Director of Research in EFG Hermes, Stephan Schurmann said that investors would be willing to take risks and there will be less illegal activities by developers. However, the question remains as to how well the court would be implemented and how the structure and setting up of the court would be.

The Chairman of Pearl Dubai, Abdul Majeed, agreed that it is a good initiative and will boost market confidence, and will bring more regulation and transparency to the market, while the property disputes too will be solved quickly.

The Tamweel CEO, Wasim Saifi, says that the initiative to create a separate court, by itself, shows the significance that the Dubai Government gives to realty sector. This specific court meant for realty sector will help in crossing hurdles bringing in greater transparency.

The court should work in co-ordination with RERA, rather than developers having to deal with multiple bodies, as at present the Land Department and RERA handles property cases. It should be brought under one umbrella, the Executive Director of ETA Star Properties, Abid Junaid, was quoted as saying.


Anonymous said...

16Septmeber 2008
grey areas in dubai rental disputes
So i just came back from my hearing today.I do not understand why this the Tenancy Law exists as it is not applied...
There seems to be a very thick grey area going on behind the rental scenes of Dubai, starting with the Dubai Rental Committee, the only authority to resolve Tenancy disputes in Dubai. The sub-tenant the teacher of the University was never asked by the Rent Committee during the entire case to show her identification and proof of Residency Visa on the University name. Failure to have this would not make her eligible to occupy my property, but as the Tenant is a famous University in the country it seems I, the owner of the property, am not entitled to have proof of such. Interesting enough I had to show proof of ownership of my property along with my own personal identification.
These Tenants are violating many of the Tenancy Contract Conditions, including not having paid Rent now for over two months. The Rent Committee still ruled in their favour by stating “ this is the University, they will definitely pay you”, insinuating this as a prestigious University is not committing any wrong due to their social stature, and is exempt from the Law.
I was denied eviction of these Tenants from my property and sentenced to renew for 1 more year a completely ignored and violated Tenancy Contract. This sounds absurd in most parts of the world, including in the UAE according to its Tenancy Law, but apparently not in the Committee.
The above Law No. 26 of 2007 Concerning regulating the relation between Tenants and Landlord of property in Dubai Emirate, clearly states:
“Article 12
Tenant shall pay rent value on agreed be paid in advance.”
Article 25
Landlord may demand eviction of tenant prior to expiry of tenancy period in the following cases:
a) If tenant fails to pay rent value, or part thereof, within thirty (30) days of landlord's notification for payment.
g) If tenant fails to observe legal obligations or tenancy contract conditions within (30) days from date of notification by landlord to abide by such obligations or conditions.”
Would these two clauses be enough to file an eviction case over two and a half months down the line where the Tenants refuse to fix the violations done to the property and have been sitting inside without making any payments? Apparently not. The Committee based their decision on the flowing article:
Article 25
Landlord may demand eviction of tenant prior to expiry of tenancy period in the following cases provided he gives 90 days notice prior to the expiry date of the Tenancy Contract:
d) Landlord desires to retrieve property for his private use or for use of a first degree relative”
Apparently this Law is the only one which rules in Rental disputes, at least that was what I was told in my hearing. This allows Tenants to stay inside the property violating a series of Laws on the excuse of Article 25d. It is clear that this Article should prevail in the case where the Tenants obide to their obligations and do not cause any annoyance to the Landlord, evidently not in my case.
Apart from that the Tenant constantly give false allegations to the Police, Public Prosecution and Rental Committee claiming it was Emaar themselves who did the violation to my property. Emaar has already provided me an official letter, which I showed as evidence, that the Tenant’s statements are false.
What is more serious than the damaged done to my property are the consequences of my tenants acts on not wanting to collaborate with me for over 2 months now, that are putting me in their own free will in a position where I am in a situation of having legal action from Emaar being taken towards me, and obviously this will give me major problems. I have already lost sums of money to resolve this situation.
Buying property with Emaar, (which is also the Regulating Authority for this area (such as Dubai Municipality is for non-free zone), you sign a Contract that the Community Rules that apply to the property and community would be respected by the owner or whoever is occupying my property. Failure to do so is a clear Breach of Contract from the owner and results in legal action from Emaar against the owner being held responsible for my Tenants. From the 23 June I have been requesting the Tenants to fix the damage and violation, including a Dubai Courts Notary Public Notification received and signed by the Tenant and the Police taking evidence that after the expiry date of such notification the violation was still there taking place, and they still refuse to fix the damage they have made up to date.
When I showed proof of all my statements, the Rental Committee simply stated “we don’t judge here based on these things.” I did not quite understand what that meant but no explanation was intended to be given either leaving the matter at that.
I have explained this situation over and over again to the Tenants but they insist on constantly giving false allegations and by their own free will are putting me in a very bad position out of my control.
However I was sentenced to renew their Tenancy Contract without the Tenants having to abide to any of their obligations, for a period of 1 more year. I tried to call the Tenants after the sentence to solve this matter, without answer of such to pick up my calls…
This leaves some thoughts on if Dubai is really ready to put itself out there as forward thinking, or is it still acting on the “old fashioned way” relying on favouritism orientated tactics to achieve its means?
This is not an odd situation in Dubai as through going trough days in registering the case, waiting to be seen etc I spoke to various people (including lawyers), and not one of the people I spoke to seemed to be convinved that the Laws are being looked at properly. This has defenately left me with a quite distorted impression of what Dubai is trying to portray…

ricky said...

Dubai court has been regarded as a beam of light for investors to remember is a group subsidiary Mizin, Tatweer, which happens to be one of the biggies in the property market of Dubai.

Real Estate Omaha