New Laws to Protect Real Estate Investors in Dubai

Real estate investors in Dubai have not been immune from the effects of the recent economic slow down. They can now hope that not only will the economy start to look up, but also that their legal position will be improved.

Investors in the Dubai real estates sector will enjoy protection of new laws that will be passed during the course of this year. The investor according to the expected laws will be able to terminate the sale purchase agreement concluded with the developer, if the latter makes any variations in the properties or if they refuse to tie the payment of instalments to the progress of the project. The Developers will further, be penalized for failure to hand over the project according to the agreement. They will not be able to sell off plan unless 20% of the project is already completed and 25% of its cost is deposited in the project's escrow account.

The law will accord more protection to buyers and investors including those have already purchased in off plan projects and will permit them to refinance their purchases or to arrange replacements in alternative projects in the case of failure to pay the instalments.


Posted by Faiza Khalifa

2011-01-19 06:39:34