The Property Investor Protection Law by June 2012, states that the Dubai Land Department will issue a new law soon, to organize the relationship between real estate investors and developers during the construction of projects.
The Director General of Dubai Land Department, Sultan bin Mejren, mentioned that the new law will be the first of its kind, devoted to protection of a particular segment of investors, ensuring their rights.
The department has completed the finalization of draft law on protection of real estate investors, which will be passed soon, Bin Mejren said.
The final version of the law will cover all major aspects of real estate projects, and regulates the process of starting the project by ensuring reliability of developer and eligibility to implement the project. It requires legal status check and monitoring the construction.
As per the latest regulation, developers are not allowed to proceed with sale of the development, before completing at least 20 percent of the project.
Bin Mejren further revealed that the real estate investor protection law in Dubai, when released and implemented, will be the first law of its kind in the country and the world, dedicated completely to the protection of rights of certain category of investors.
The law forms a part of the Strategic Plan of the Government of Dubai. Bin Mejren emphasized the importance of this step to protect and preserve the rights of real estate investor. The new law aims to protect the real estate investors by achieving the required balance between rights, interests and duties of investor and developer.
The new Act further ensures that it addresses all stages of investment in real estate – from planning stage to construction and delivery phase. It regulates the contract process between investor and developer to ensure the rights of the parties.
The new law also regulates the delivery process and ensures conformity with specifications mentioned in the contract between the parties, and organizes the entire process of re-selling the property.
Bin Mejren expects the real estate market in Dubai to continue with its strong recovery process, encouraging investors to continue their investments in Dubai real estate, owing to high levels of confidence, stability and commercial appeal.