New Proposed Dubai Investor Protection Law may Undermine Rights of Owners' Associations
Type
E-journal
Date
1 May 2012
Jurisdiction
Dubai, United Arab Emirates
Taxonomy
Conveyancing & Sale of Land, Sale of Land, Regulatory Compliance, Applicable Law, Jurisdiction, Certification of Building Contracts, Building Inspectors & Regulations, Registered Land
Copyright
LexisNexis
Relevant company
Hadef & Partners
Legal reference
Dubai Law No. 27/2007, Dubai Directions No. 1/2010
Analysis
Hadef & Partners examine the key provisions of the new Dubai Investor Protection Law and its potential impact on the rights of owners' associations, particularly in light of Article 11 of the new draft law
Background to the introduction of the JOP Law
In the heady days of the property boom in Dubai many developers forced investors to sign one sided sales agreements. These agreements were usually very onerous on the investor as far as payment is concerned whilst being light on the developer as far as delivery is concerned. In addition, the sales agreements generally required owners to allow the developer to control common areas and collect service charges after delivery of the unit, and such arrangements might be for terms of up to 15 years.