Monday, March 30, 2009

Dubai acts to resolve property disputes

Dubai has formed professional groups and mediation center to resolve the numerous disputes arising among investors and developers, as the property sector suffered under the impact of global economic turmoil.

The initiative, which is a joint-effort by the Dubai Land Department and Dubai's RERA, has been aimed at integrating the main parties in the property sector into a regulatory framework, under the leadership of RERA.

A mediation center was formed to resolve the disputes in a quicker and efficient manner, away from the Property Court. At present about 500 or more such cases are said to be awaiting the court orders. The center has resolved 95 cases over the past month.

This idea has been welcomed by the industry so far. Next month, property investors, developers, evaluators and brokers will form groups within RERA. These committees will meet on a regular basis to review and develop a regulatory strategy to create plans and manage conflicts in the property sector.

Off-late, groups of investors have been filing petitions to developers regarding cancelled projects. Even last week, hundreds of investors appealed to Nakheel's Dubai sales center, urging the developer to reschedule its payment plans for villas on Palm Jebel Ali, due to delays.

Emaar has revealed its plans to put on hold three of its projects, following a petition from the Emaar Investors Group. Both individuals and homeowners' associations form a part of the new investors' community within RERA.

This is the latest among the measures taken by the Government to increase market confidence. Last month RERA had announced that the agency would begin publishing monthly progress reports on each of the 695 projects with Escrow Accounts. The progress on the developments would be published online with photographs about progress in construction.

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