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Dubai acts to boost trust in property sector
The fallout from the global financial crisis has left many buyers and tenants in the local real estate market unable to service their debt obligations.
- Gulf News
- Published: 00:00 November 8, 2009
- When the Dubai Government opened up the emirate's real estate sector for full foreign ownership in 2002, no one knew what to expect in the coming years.
- Image Credit: Javed Nawab/Gulf News
The Dubai government has set up a judicial committee that will settle cases involving bad cheques in the property sector, whether from a buyer or to pay rent, in a move that could offer assistance to tenants who are facing financial difficulties and boost confidence in the real-estate industry.
The fallout from the global financial crisis has left many buyers and tenants in the local real estate market unable to service their debt obligations. As a result, many have fallen foul of the law and their cases are clogging up the legal system.
To facilitate the just and efficient resolution of the cases, the judicial committee has been set up with the right to cancel bounced cheques and have them issued at another date. This will give people time to work to settle their debts, rather than them going to jail with no chance to make good on their responsibilities.
This will be good for the local property industry as limited legal options have harmed investor confidence in the market. Tenants who cannot cover rental cheques — possibly through no fault of their own — will now have an authority, other than the courts, to which they can turn.
The move to tackle bad cheques in the property industry comes shortly after the Dubai Land Department announced the introduction of a free legal service to support people involved in real estate-related court cases. To ease the backlog of cases in the property court and to ensure that everybody concerned has access to justice, law professionals will offer free legal assistance to residents who have genuine property-related disputes.
By providing a stronger, more transparent framework through which investors, tenants and other stakeholders in the property market can resolve their problems, the government of Dubai is ensuring that residents are able to secure their homes and their future in the emirate.
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