14 February, 2008

Dubai Property Developers must be quaking in their boots

From the Best Syndication website, the following article written by Pankaj Mohan appeared yesterday. Although the grammar is not the best, the content will be of great interest to property owners in Dubai:

Dubai's buyers can finally decide to have a sigh of relief, since they can buy now properties insured against any structural damages. The buyers used to be left in lurch until today whenever any structural damage came to light after the properties were handover.

They couldn't ask for any legal proceeding or compensation due to the lack of proper laws they had. But, the Real Estate Regulatory Authority (RERA) has finally decided to change this scenario, and introduced a new law which makes developers responsible for damages that might get noticed after the property had been handed over. The buyers will be free to approach the regulatory body whenever there seemed to be any breach of law taking place. Scores of Dubai apartments, furnished villas, hotels and Dubai hotel apartments will come under the purview of this new legislation....

Serious wall cracks appearing within 10 years of the property handover can be a case for compensation, and any electrical, mechanical and plumbing related faults can be challenged in the first year after handover.

Read the whole article

8 comments:

Seabee said...

It's all part of the laws scrambling to catch up with the reality on the ground. Just about every subject of the law needs it too.
These new real estate laws, imported from places like Oz, will bring us in line with the rest of the world eventually.

B.D. said...

This brings to mind Damac's Marina Terrace opening about two years ago. Within a month or so of handover there was a plumbing catastrophe with burst pipes flooding numerous apartments resulting in costly damage. Damac's immediate response: each owner had to recover any payment for damages from their own homeowners' policy. Surely their insurance providers wouldn't want to pay for this, and they would be left in the lurch. I imagine of these new laws had teeth that would put companies like DAMAC out of business. It remains to be seen, however, how well these laws will be enforced.

James said...

Dubai Hotels provides the vacation and business travelers going to Dubai, access to the best rates and availability for Dubai hotels, car rental, and other travel-related services directly through real-time booking.

Property Developers Dubai said...

"There are just too many developments under construction that are coming online in the next two or three years," said Waryn, an American executive who moved to Dubai from London. "The supply and demand balance are going to be out of whack and the prices will come down."

Dubai Blog said...

The proper legislation is the key to run the functions of different sectors. The new law made by the authorities is protecting the buyers. That’s why there will be chances of increase in investment in properties sectors.

joye said...

It must be a superb news afterwards if you consider the dream of having property in dubai.

garry said...

It would neither get affected the property dealing market in Dubai.

Mendy said...

Its great news for Dubai buyers as they can buy now properties insured against any structural damages.
Now one might think to buy a propery in Dubai.

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