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Homeowner draft law in Dubai stirs control issue

The National
A draft law gives property investors in Dubai entering into off-plan purchases greater security. Christopher Pike / The National

A draft law gives property investors in Dubai entering into off-plan purchases greater security. Christopher Pike / The National


A draft law to protect Dubai homebuyers has raised concerns in the industry that it may give control of common areas to developers.



Although the draft gives property investors entering into off-plan purchases greater security, a clause that relates to shared ownership of buildings has raised questions among property lawyers and analysts.

The draft has been circulated among lawyers in Dubai for their informal consultation before it takes the next step towards any implementation, for which a date has yet to be set.

Article 11 of the draft Investor Protection Law suggests developers will retain control of common areas where such rights are contained in the original sales and purchase agreement, according to Michael Lunjevich, a property lawyer at Hadef & Partners in Dubai.

"The law may not have the intended effect of strengthening the market and [instead] threaten to undermine a recovery," said Mr Lunjevich.


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