Dubai’s Effort for Clear Real Estate Adjudication

Real estate plays a huge role in the economy of any nation and there’s no surprise in the legislation that this sector has been the most active across the world, having several other countries following suit regarding adaptation of Dubai’s principles for the protection of investors and developers. India’s case is the most notable in this regard. There established RERA which is an extrajudicial body which oversees the sector and expedites especially small investors brought claims before it.

In Dubai, arbitration role needs to be examined before either party goes for litigation. This process has been carried out and grown over the years thoroughly and because of this the conflict resolution has made effective considerably. Because of these measures taken at the right place, the disputes going over to the courts have dropped in considerable amount since last 3 years.

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Litigation is a lengthy process. Under normal circumstances, it is safe to estimate the period which it will take to issue a first instance verdict is being 6-10 months. A further 6 months is needed to issue a second verdict by the appeal court. All together it takes around one year or a year and a half to reach final step of the lawsuit of this nature under general situation. In certain cases however, the lawsuit enters a third stage which is Court of Causation.

Any bilateral contract entered between parties hence forms the crux of the issue. Form F issued by RERA declares the standardization of contracts which developers and investors enter into. Communication at the time of the event should be prompt and in written form clearly established along with documentation. These best practices already laid out aids the regulators as well as arbitrator in reaching a solution, therefore nullifying the need to resort to litigation. In the case of filing lawsuit, it is important to check for the judicial jurisdiction, which means it shall be either considered by courts or arbitration tribunal. This is decided by the developer & purchaser agreement as stated in the contract.

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Besides, if the agreement states that arbitration shall be sought in dispute case and party applies for litigation with a court whereas other one doesn’t maintain the clause during first hearing, then the defendant’s right is considered forfeited to maintain the arbitration clause and he/she won’t be allowed to submit the invalid lawsuit because of this clause.

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