The bill includes about 30 articles covering four stages of the process of buying property until received and used by the investor, according to clear and transparent mechanisms, aimed at protecting investors’ rights, said Bin Mejren.

The new law includes a clear mechanism for cancelling the contract between the developer and the buyer, while ensuring the affected party’s right to recover its payments as well as determining more precise mechanisms for the application of deterrent legal actions against violators of the enacted real estate laws.

The bill allows the DLD to play broader regulatory, technical, operational, and organisational roles to better safeguard investors’ interests and ensure equitable application of those four stages, said Bin Mejren.

The first stage covers research, collection of data related to the property and registered it with the DLD and verifying the legal status of the developer.

Furthermore, the proposed law bans developers from selling properties before the completion of 20% of the project. It also requires payments by buyers of offplan properties to be deposited in special trust accounts, in addition to other terms and controls that will see developers provide proof of commitment before being permitted to proceed with marketing, contracting and sales.

The second stage is focused on the contract between developers and investors, ensuring the rights of both parties through a unified contract, while the third stage is aimed at streamlining the handover process by ensuring the conformity of property’s specifications to the terms of contract.

The final provides guarantees investors with wider protection, said Bin Mejren without providing further details.

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