Know your rights as a real estate investor

Ismail Al Hammadi

02 April 2024

The various legal legislations in the real estate sector and areas of investment in it in Dubai guarantee all rights to customers, whether they are end users of the property, investors, or tenants. The bodies and parties responsible for regulating the real estate sector in the emirate have spared no effort to introduce strict laws that clarify the rights and duties of each party. In order for things to be clear, each party will find out its rights and duties by reviewing these laws and consulting specialists about them.

Among the express rights of the real estate investor guaranteed to him by the real estate law in Dubai with all transparency and integrity, for example, is to prevent the main or sub-developer from claiming, or charging any fees for the sale or resale and various legal transactions that take place on the completed real estate units or sold off-plan, and this is in accordance with Article No. 7 of Law No. (13) of 2008 regulating the initial real estate registry in the Emirate of Dubai.

Article No. 12 of the same law stipulates that the buyer of a real estate unit must not pay compensation under any circumstances if there is an increase in the area of ​​the real estate unit sold after delivery, as this area is considered correct. The law prohibits the developer from claiming the value of this increase, and if the opposite happens, and the buyer discovers a deficiency in the area, he must demand that the developer compensate him for this deficiency, and the law obligates the developer to compensate for that, unless the deficiency is ineffective, in which case the developer’s compensation is forfeited. According to my belief, such a clause and this equation may not be found in any modern real estate law or in the largest global real estate markets (the developer is obligated to pay compensation if a shortage in the unit area is discovered, and the buyer is not required to pay compensation if there is an increase in the agreed upon area).

Among the rights guaranteed by the law to the real estate investor in Dubai is that the developer is held responsible for repairing or correcting any defects in the structural parts of the joint property, which the unit owner or owners association notifies him of, for a period of 10 years, and his continued responsibility for repairing or replacing defective fixtures in the property. The subscriber for a period of one year, starting from the date of obtaining the completion certificate for the project he developed, and this is proven by Article (26) of Law No. (27) of 2007 regarding ownership of joint properties in the Emirate of Dubai.

In addition, the law allocated a special account for the project invested in, known as the “escrow account.” This account stores all the installments paid by the unit buyer and directs them to the benefit of developing the project. This account prevents the developer from disposing of them for other purposes outside of the project. There are many and varied laws to preserve the rights of investors and protect them, and all you have to do as a market trader is to know your rights as an investor to protect your investment.

@ismailalhammadi

Ismail.alhammadi@alruwad.ae