Neighbourhood Watch: Basic legal framework needs to be drawn up

In a previous discussion, we have touched upon the subject of real estate legislation and the benefits that it is likely to bring to the landlord-tenant relationship.

We primarily examined the advantages of having a law setting out a framework around which to draw up a tenancy contract, knowing that the terms and conditions thereof would be enforceable by the rent committee. By having a greater certainty of process, it is likely that a substantial number of cases would not need to reach a hearing.

So where would such a law come from? The idiosyncrasies of the Dubai market and its constantly changing profile of the real estate sector, would make it very difficult to import a real estate law from any other country. Would European, the U.S. or Australian real estate laws be best suited? Which system is most applicable to the changing face of Dubai? The fact is, that Dubai cannot benefit from a 'cut and paste' legal framework; it needs one of its own.

The ways in which laws evolve over time are generally through trial and error. Their applications are tested with numerous cases, and where necessary, they adapt to clarify grey areas and to reflect changes in society. This is why there is no clear-cut solution as to what laws should be created.

The important point to consider, is the position of both the landlord and the tenant; the system set out cannot be seen to be favouring one or other party.

Although this is a very simplified view of a highly complex discipline, it may be necessary to take a similar view of Dubai, and what is likely to be required in the foreseeable future.

Starting with an unpretentious, easy to understand framework which governs on an equitable basis, the law should promote relationships between the two principle parties to a contract relating to an interest in land.

From this point and, in consultation with the rent committee who would be responsible for its application, any amendment could be made as and when required.

By having this relationship set out in a way that is accessible to everyone, (after all we are all either tenants or landlords at the moment), this would prevent many of the cases from going to the courts and the outcome should be simple, straightforward and fairly predictable. It would also provide more time for the courts or the rent committee to address the more complex cases, thus using their valuable experience in a more effective way.