New Property Refund Law in Dubai

Published: 25/01/2010

New laws planned for this year will protect property investors in Dubai against developers delivering defective or late properties. Under the new legislation, investors will receive refunds or replacement property, and developers will face financial penalties if their projects are not produced on time or not delivered to the agreed specifications. Legal disagreements will most likely continue throughout the course of the year around the UAE, lawyers say, with increasing numbers of buyers defaulting on their payment plans and developers not delivering their buildings on time. There will be a great deal of consolidations, legal claims, liquidations and insolvencies to come, however, the new legal regime, which will comprise a series of new legislations, is being put into place in order to resolve these disputes, and cleanse and organise the market. The laws, being drafted by the Dubai Land Department, have been brought about after the financial crisis fallout.