Client Alert The UAE reinforces confidence in the real estate

Client Alert The Uae Reinforces Confidence In The Real Estate-Free PDF

  • Date:25 Nov 2020
  • Views:1
  • Downloads:0
  • Pages:5
  • Size:307.99 KB

Share Pdf : Client Alert The Uae Reinforces Confidence In The Real Estate

Download and Preview : Client Alert The Uae Reinforces Confidence In The Real Estate


Report CopyRight/DMCA Form For : Client Alert The Uae Reinforces Confidence In The Real Estate


Transcription:

in Dubai and stipulate that a developer cannot market and sell an off plan. property in Dubai if the project is not approved by the Competent Entities. first and render any sale and purchase agreement SPA executed prior. to obtaining such approval null and void, However the law is silent as to exactly what types of approval are. required and which government departments qualify as competent. entities As a result of this ambiguity the Dubai courts have been. accustomed to interpret this law to mean that the project adoption date by. the DLD is considered as the required approval from a competent entity. before an off plan property is marketed for sale, A major UAE real estate developer s successful appeals in two cases to. the Dubai Court of Cassation brought these issues to the fore The lower. courts previously ruled to nullify the SPAs in favour of the buyers on the. basis that the off plan property developments were marketed for sale and. the agreements were signed before the project adoption date by the DLD. in accordance with the Interim Real Estate Register This was despite the. fact that the projects were completed and the sold units registered in the. names of the buyers in the DLD s Oqood registration. The successful appeals presented by Baker McKenzie Habib Al Mulla on. behalf of the developer was based on the facts that it had obtained. i an approval for the construction of a hotel from the DTCM for one. project under the first judgement and, ii a building permit from the Dubai Municipality for the other project. under the second judgment following which the properties were. marketed and the SPAs executed, Ruling in favour of the developer the Dubai Court of Cassation. overturned the rulings of the lower courts on the following grounds. i The developer had adhered to the provisions of the Interim Real. Estate Register by securing approval from the competent. government entities namely the DTCM and Dubai Municipality. prior to the execution date of the SPAs, ii The developer had registered the property units in the name of the.
buyers in the DLD s Oqood registration and the projects were. ultimately adopted by the DLD, iii The developer had fulfilled all of their contractual obligations. towards the buyers by depositing the purchase price in the. projects escrow accounts and finalizing the construction of the off. plan projects, Real Estate Dispute Resolution Article February 2019 2. What does this mean for you, If you are a developer disposing of off plan property you can now seek an. approval from a range of government entities including DTCM and Dubai. Municipality in addition to the DLD Clearly this will save you time and costs. as you can commence your off plan sale projects upon securing any of the. above approvals and can avoid financial loss arising from buyers trying to. contract out of the SPAs and claiming for a refund of the purchase price. As a buyer you will not be able to escape your liabilities but your investment. should still be secure as you will benefit from protections offered by the law. with the proper approval and registration process in place. To speak to us in relation to the above judgments please feel free to. contact Tarek Saad and Abdalla Eisa see contact details below. 2 Main developers are obliged to ensure completion of. infrastructure for sale, A ruling by the Dubai Court of Cassation in 2018 in relation to the dispute. over the sale and purchase of two plots of land in Downtown Jebel Ali set. a precedent by confirming the liability of both main developers and sub. developers for ensuring that the infrastructure is completed for a property. or land before it is advertised or offered for sale. In this case the successful appeal presented by Baker McKenzie Habib. Al Mulla on behalf of the sub developer a major real estate developer in. the UAE sought to a invalidate the SPA entered into with the main. project developer and b receive a refund of the purchase price. amounting to approximately AED 58 3 million excluding interest on the. basis of breach of obligations by the main developer. The court found that the sub developer had grounds to repudiate the. agreement as the main developer had breached their obligations to verify. that the land for sale should be ready and equipped with the proper. infrastructure As a result of this ruling the main developer had opted for. a settlement with the sub developer instead which awarded our client a. total of AED 81 9 million, The court also ruled that notwithstanding a breach by the main developer.
the sub developer may be held accountable by the end buyers for not. completing the works of the infrastructure, The court s ruling in favour of the sub developer was significant as their. Real Estate Dispute Resolution Article February 2019 3. interpretation of the law addressed an issue upon which the law was. silent the law does not specify the obligations and liability of parties to. complete the works for the required infrastructure before offering a. property or land for sale,What does this mean for you. If you are a main developer you risk suffering significant financial and. reputational loss if you breach your obligations to complete the infrastructure of. properties for sale and cannot avoid your liabilities in this regard. If you are a sub developer you must note that the obligations of the main. developer does not relieve you from your own obligations towards the end. buyers of the property units a point that the Dubai Court of Cassation has. stressed Accordingly you should exercise caution when setting up your. projects on the property for sale as you may be held liable by the end buyers. for what is ultimately the main developer s obligation. And as an end buyer you have greater assurance that the property you are. purchasing is fully completed with the required infrastructure and that if this is. not the case you have recourse against the developer. To speak to us in relation to the above judgment please feel free to. contact Wael El Tounsy Shaima Al Barguthi and Marina Gaballah see. contact details below,How can we help, Baker McKenzie Habib Al Mulla regularly represents real estate developers in. such precedent setting cases in the UAE real estate market including. presenting arguments challenging the previous rulings and assisting with. settlements We have obtained favourable judgments from the Dubai Court of. Cassation on behalf of our clients and more importantly confirmed the Dubai. court s interpretation of the law for similar cases in the future. Whether acting for the buyer or seller we are well placed to advise clients on. contentious real estate issues We are happy to assist with any enquiries that. you may have with regard to the application of local laws practices and. procedures in your real estate transactions and cases including representing. you before the relevant UAE courts as required, Real Estate Dispute Resolution Article February 2019 4. Wael El Tounsy Tarek Saad Abdalla Eisa, Head of Real Estate Dispute Partner Dispute Resolution UAE Associate Dispute Resolution UAE.
Resolution UAE Tarek Saad Abdalla Eisa,Wael ElTounsy bakermckenzie com bakermckenzie com. bakermckenzie com f b,Shaima Al Barguthi Marina Gaballah. Associate Dispute Resolution UAE Associate Dispute Resolution UAE. Shaima AlBarguthi Marina Gaballah b,bakermckenzie com bakermckenzie com. www bakermckenzie com,Abu Dhabi Dubai Business Bay Dubai DIFC. Level 8 Al Sila Tower Level 14 O14 Tower Level 3 Tower 1. Abu Dhabi Global Market Square Al Abraj Street Al Fattan Currency House. Al Maryah Island Business Bay DIFC,P O Box 44980 P O Box 2268 P O Box 2268.
Abu Dhabi UAE Dubai UAE Dubai UAE,T 9712 6123700 T 9714 4230000 T 9714 4230005. F 9712 6581811 F 9714 4479777 F 9714 4479777, Baker McKenzie Habib Al Mulla is a member firm of Baker McKenzie International a Swiss Verein with member law firms around the world In accordance with the common terminology used in. professional service organizations reference to a partner means a person who is a partner or equivalent in such a law firm Similarly reference to an office means an office of any such law firm This may. qualify as Attorney Advertising requiring notice in some jurisdictions Prior results do not guarantee a similar outcome. 2019 Baker McKenzie Habib Al Mulla, Real Estate Dispute Resolution Article February 2019 5. names of the buyers in the DLD s Oqood registration The successful appeals presented by Baker McKenzie Habib Al Mulla on behalf of the developer was based on the facts that it had obtained i an approval for the construction of a hotel from the DTCM for one project under the first judgement and ii a building permit from the Dubai

Related Books