New Real Estate Investor Protection Law for Dubai
Dubai is to see a new Real Estate Investor Protection Law come into force at the start of 2013, according to a report by real estate information company Reidin.com.
Majida Ali Rashid, Senior Consultant and Director of Planning & Organizational Development at the Dubai Land Department stated that the changes came from several suggestions from the public.
The draft law, which was released in June, allows investors to receive a full refund if the developer fails to complete or handover the property within a given time.
It also sets out that if the developer purposely deceives the investor, or makes alterations to the unit without obtaining a permit to do so, the investor will receive the refund.
They can also claim compensation if any part of the warranty is breached, or if anything contained in the contract for sale by the broker and seller is undertaken by the developer.
Similar conditions apply to any misrepresentation of any of the parties, and if any violations of the contract occur after an expert’s report has been given.
However, according to Hadef & Partners’ 2012 report, only 28% of 8500 who responded to the draft are aware of the upcoming law.
A further 56% are unsure as to the law’s contents and what it will enforce.