Monday, December 17, 2012

Dubai to release new Real Estate Investor Protection Law by early 2013

The Real Estate Investor Protection Law will be released during the first quarter of 2013 in Dubai, a senior Dubai Land Department (DLD) official has confirmed.

The Senior Consultant and Director of Planning & Organizational Development at DLD, Majida Ali Rashid, said that the department received several suggestions from the public and subsequent changes have been incorporated in the law. It will be released within next three months.

The draft was released in June, seeking suggestions from industry participants. The draft law permits investors to get complete refund if the developer fails to complete or handover the property within stipulated timeframe, or if the developer deliberately defrauds, or alters the specifications of the unit without obtaining the necessary permits.

The investors can also claim compensation in cases of breach of any warranty or undertaking contained in the contract for sale by broker and the seller, or for misrepresentation by the developer or investor or broker, and in cases of specifications in violations of the contract for sale, after obtaining an expert’s report to that effect.

Hadef & Partners in its 2012 report on the legal state of Dubai real estate market report, which was released last week, said that only 28 percent of the 8500 respondents are aware of the proposed law, and 56% are unfamiliar about its contents.

No comments: