Dubai Property Court Will Bring Transparency

The setting up of the property court will bring transparency among developers in Dubai, while investors will be more inclined towards risk taking, said developers and analysts.

Dubai real estate court: A benefit to buyers

The reactions came after Emirates Business reported on Tuesday that the emirate will set up a special court that will deal exclusively with Dubai property related cases from September.

“The Property Court will be set up as per Law No1 of year 2003 under the main section of the court called The First Instance Court. It will have jurisdictions over all properties in Dubai except those of Dubai International Financial Centre, which has its own judicial system,” said Judge Mohammed Yousuf A Sulaiman, Deputy Director for Dubai Courts and Cassation Court’s Senior Judge.

The property court will be set up with a minimum of ten judges and the number could increase depending on the number of property related cases.

The move follows creation of Real Estate Regulatory Authority, part of the Dubai Land Department, and passage of a law concerning guarantee accounts of real estate developments by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

“The setting up of the property court is a positive development as real estate market is moving towards maturity and value of transactions are increasing,” Amlak Finance’s Chief Executive Arif Alharmi said.

Nakheel spokesperson Aaron Richardson said: “We’ve anticipated there would be such a court that would aid in the efficient dispensing of matters related to property ownership and mortgage enforcement.

“We welcome this move as part of the future development of the legal process related to the property industry,” he said.

EFG Hermes Director of Research Stephan Schurmann said that risk taking by investors will increase, as there will be less wrongdoing by developers.

“But the big question as regards setting up the court would be how well it would be implemented and how will the structure and set up of the court be,” he said.

Industry hails property court creation

Abdul Majeed Al Fahim, Chairman of Pearl Dubai says: “It is a good initiative and will certainly boost market confidence. There will be more regulation in the market that will bring in transparency. Even property disputes will be solved at a faster pace. We welcome the initiative.”

Wasim Saifi, Chief Executive Officer of Tamweel says: “The move of creating a separate Dubai property court itself shows the importance the Dubai Government gives to the real estate sector. A sector specific court will help overcome obstacles, bring in greater transparency and boost market sentiments.”

Arif Alharmi , CEO, Amlak Finance says: “The setting up of the property court is a positive development as the market is moving towards maturity and value of transactions are increasing. After Rera and escrow accounts, the new court will be responsible to resolve transactions of complex nature.”

Tarek Kandil, Chief Executive Officer, Define Properties says:
“The new court will force ‘everybody to do things in the right way’. The setting up of the property specific court is a very positive thing for the market. It will actually force buyers and developers to do the right thing in the right manner.”

Abid Junaid, Executive Director, ETA Star Properties says: “The court should work with Rera. Currently, the Land Department and Rera handle property cases. Rather than for developers and buyers having to deal with multiple bodies, it will be good if the court brings them under its umbrella.”

Stephan Schurmann, Director of Research, EFG Hermes says: “Investors will be ready to pay higher price for the same Dubai property since in cases of breach of contract refunds will be more likely with the court being operational. A court is necessary because of the recent wrong doings by some developers.”

Source: www.business24-7.ae