Dubai: The newly established dispute committee, set up by Ajman's Real Estate Regulatory Agency (Arra) will consist of five Arra members and will be presided over by a judge whose identity remains confidential.
Fees will be cheaper than in regular courts, an Arra spokesperson told Gulf News.
No other details are available, but the setting up of the committee has come at a good time as investors in certain projects are experiencing problems with developers.
Casamia Star, developer of Frankfurt Residence, a yet-to-be-built residential tower in Ajman, caused alarm among investors by telling them the project had been cancelled.
However, Arra officials told Gulf News last week that neither the project nor the developer had been registered with Arra and that the developer did not have the right to cancel the tower.
"Casamia Star is not registered as a developer with Arra ... [and] non-registered developers were given until [Wednesday] to avoid further action. As far as project cancellation is concerned, no developer has the right to cancel a project unless the regulator says so and that requires satisfactory reasons," Arra told Gulf News.
Investors in the project flew into Dubai last week from around the world to find out what had happened to their investments.
Arra told investors that they would investigate the matter further.
Another concern to investors now is that the project account of Casamia Star remains active, according to Amjad Ghulam, one of the investors.
"The account is still alive and collecting money. [An investor] paid their payment in June and it's cleared," Ghulam said to Gulf News.
So far, the 251 investors have paid around £5 million (Dh30 million) to the developer.
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