The Real Estate Investor Protection law is likely to be finalised and issued by year-end, a senior Dubai Land Department (DLD) official told 'Emirates24| 7'.
“We have appointed a consultant to review and finalise the law… we expect it to be issued by the year-end,” Sultan bin Butti bin Mejrin, Director-General, DLD, said.
When asked why the law was being delayed, he added: “It will be quite an important regulation and so we have to ensure that it is perfect.”
Although bin Mejrin did not give any further details, it is understood that the new law will provide clarity on various issues such as steps that an investor can take in case of project delays, how an investor can cancel their contracts if the developer fails to fulfill his contractual obligation, et al.
As reported earlier by this website, if the code for corporate governance is implemented by DLD from 2013, it will be mandatory for all developers to disclose recourse and alternatives available for prospective investors in case of a delay in completion and handover of their property. The code will also ensure that companies inform their investors of various options such as swaps or refunds in case of project delays.
In March, Emad Eldin Farouq, Senior Legal Advisor, DLD, had said that the department was planning to introduce new legislations to restore investor confidence in the market, but emphasis was on promoting an efficient alternative dispute resolution such as mediation to mitigate disputes.