A few days back a businessman from the UK interested in buying two units of property in Dubai has been refunded for one unit because the projects was way behind schedule. This and many other similar incidents seemed to be shifting the balance of power in the favor of the buyers or investors in the Dubai real estate. The new laws made were apparently meant for the investors or buyers. However, a new law will enable the developers to take action against those buyers who breach the terms of the contract which they had with the developers. According to this law the developer of any property can send a termination letter for remedying the breach by the buyer and if the buyer fails to remedy the breach, the contract with the buyer will automatically be terminated.

The additional clause included in this law is that at the time of sending the notice to the buyer, one copy has to be sent to Land Department only for intimation that such notice has been served and there is no need for approval before sending such notice. This law means that the number of cases which were earlier referred to the courts will decrease significantly, resulting into more speedy trials of the cases pending in the courts. The longstanding stalemates between the buyer and the developer would also come to an end. Developers have welcomed the move as they say that this new law will help them take care of the customers involved in the breach of the contracts. They further added that this law will also help reduce the negative speculation that is being done for damaging the repute of the developers in Dubai’s real estate market.