Dubai is likely to implement the Real Estate Investor Protection Law towards the year-end, revealed a senior official at the Dubai Land Department (DLD) yesterday.
The Director General of DLD, Sultan bin Butti bin Mejrin, said that a consultant has been appointed for review and to finalize the law, which will be issued by the year-end.
This will be an important regulation, and therefore, it has to be checked for perfection before issuance, he pointed out.
No new details were given by bin Mejrin, by the new law is hoped to clarify several issues such as steps to be taken in case of project delays, and whether an investor can cancel a contract, if the developer fails to fulfil any contractual obligation, and more.
Once the code for corporate governance is implemented by DLD in 2013, all developers will have to reveal recourse and any available alternatives for prospective investors in cases of delay in completion of projects. The code will also ensure that the companies keep their investors informed about various other available options including swaps or refunds in case of any project delays.
The Senior Legal Advisor at DLD, Emad Eldin Farouq, said that the department plans to introduce new legislations to restore investor confidence in the market, although emphasis is laid on promoting efficient alternative dispute resolution.