Tuesday, February 15, 2011

Dubai to announce an investor-friendly Law this year

The Real Estate Investor Protection Law will be announced this year, which will enable investors to seek cancellation of contracts, in case the developer fails to fulfil his contractual obligations, revealed the Director-General of Dubai Land Department.

Sultan Butti bin Mirjin said that the new law would comprise nearly 30 articles, with much focus on investors, offering them complete and comprehensive legal support to protect their property purchases. The law will be released this year.

The law is also likely to look into matters such as developer's refusal to link payments to construction milestones, or in case he makes material changes to specifications. It also deals with refund issues in the event of any material defect and financial penalties for delay in delivery of the property.

According to Mirjin, the law will empower the investors to resort to cancellation of sales and purchase contract with the developer and even recover dues in full.

Further, the Land Department has established a mediation committee that offers solutions, only if the developer and investor agree to settle their issues amicably. In case of disagreement, the issue is settled in court.

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