New Law to Protect Buyers in 2013

New Law to Protect Buyers in 2013

Dubai said on Tuesday that the world's first governance charter for real estate developers - aimed at improving transparency in the sector - would be implemented by January 2013.  The charter will call on developers to disclose details regarding their activities, progress of their projects, financial solvency and ability to manage quality and risk. It also aims to attract foreign investments, raise the level of confidence and enhance the efficiency of real estate companies, DLD said in a statement.

Dubai’s new real estate investor protection law is also going to be released during the first quarter of 2013, the Dubai Land Department has confirmed. A draft was published in June and after a consultation process the final law is now being drawn up. The law will pave the way for property investors to get a complete refund if a developer fails to complete or handover a property within the stipulated timeframe, or if the developer deliberately defrauds, or alters the specifications of the unit without obtaining the necessary permits.

“Developing and strengthening corporate governance practices is a prerequisite for protecting property rights, attracting and ensuring the loyalty of investors, developers, brokers, lawyers and managers of property owners' association in addition to residents, consultants and stakeholders from other entities. This will surely boost confidence in Dubai's real estate sector.” Marwan bin Ghalita, CEO of Dubai's real estate regulator RERA.

Investors will also be able to claim compensation in cases of breach of any warranty or undertaking contained in the sale contract by a broker or for misrepresentation by a developer or broker.

Meanwhile, new figures from the emirate’s Real Estate Regulatory Agency (RERA), the regulatory arm of the Dubai Land Department, show that there are now 3,094 real estate brokers registered in Dubai.

In terms of nationalities, UAE nationals dominated this profession with 620 brokers, while Indians ranked second with 438 brokers, whilst Pakistanis came third with 428 brokers. British came fourth with 304 brokers, followed by Egyptians with 160 brokers. At the bottom of the top 10 list came the Filipinos with 59 brokers.

Yousef Al Hashmi, director of RERA’s real estate licensing department, said it is now no longer possible for companies to undertake brokerage activities without registration so end users and investors are protected when purchasing property in the Emirate.