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Reasons for Real Estate Litigation in the UAE: An Overview

In today’s market, real estate litigation is becoming more frequent. There is a strong probability that you may get involved in a real estate dispute at some time in your career, whether you are a property owner, a landlord or a commercial real estate developer. Real estate litigation is required when the parties cannot reach an agreement. However, some issues may be settled outside of court. Dubai’s thriving real estate market, a megacity, renders it vulnerable to similar problems. Still, the regulations established by the UAE government have brought everything under control and clarified the responsibilities and rights of investors, developers, owners, and landlords.

Our attorneys in Dubai UAE are professional and skilled in the real estate business. They have assured experience and know how to approach each case in light of the facts and evidence. Our Lawyers go through the most typical reasons for real estate lawsuits and some preventative measures.

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Reasons for the Real Estate Litigation

  1. Breach of Contract

Contracts are used in real estate sales agreements. A sales contract you sign when you decide to purchase or sell real estate will include requirements that you and the other party to the deal must follow. The closing date, title clearing, financing, and the items that will be included with the home purchase will all be outlined in the real estate contract. The opposite party may be entitled to file a lawsuit for breach of contract if either party disregards the conditions outlined in the agreement.

It’s crucial to study your real estate sales contract properly. We advise consulting a real estate litigation lawyer to examine the deal. Real estate brokers often utilise template agreements that are not specific to real estate transactions. These sample agreements could not safeguard your rights or enable you to complete the sale or purchase of the property in a way that meets your needs. An attorney can search for warning signs that might endanger your financial future.

A real estate litigation lawyer may engage in negotiations with the opposite party to remedy any red flag concerns they uncover in your real estate contract. It is preferable to take the time to properly review the agreement before you sign it rather than risk being legally trapped by a contract that has negative clauses for you.

You should know: Risks of property transfer in UAE without property conveyancing lawyer

  1. Failure to Identify a Property Defect

Most jurisdictions require the seller to disclose any hidden flaws that might reduce the property’s value. After closing on the property, the buyer may file a lawsuit against the seller if they find a previously unknown flaw. A vendor who fails to disclose a knowing and not obvious fault may be held liable by the customer. The purchaser must demonstrate that the defendant willfully hid the defect despite knowing or reasonably should have known about it.

  1. Duty Breach or Negligence

A real estate agent may be held liable for carelessness or duty violation. Real estate brokers are required by law to operate in the best interests of their customers and not in their own or another party’s interests. Real estate brokers must keep all client information, including their financial position, secret.

Real estate brokers must also provide their services with their very best effort. Real estate agents are liable for any harm caused by their carelessness when they commit a mistake that costs their customers money. Additionally, real estate brokers must disclose any information that can be useful to their customers. Consider a situation where a real estate agent is aware of a flaw in the property but chooses not to disclose it to the customer to keep the commission from the sale. In such a situation, the customer has the legal right to sue the real estate agent.

  1. Boundary Dispute

Real estate litigation may happen when the parties to a real estate transaction need to define the property borders accurately. Property lines sometimes need to be appropriately recorded. A practical property line that the residents use must follow the officially registered property line, among other things.

Our real estate litigation lawyers in Dubai provide the following services:

Using the assistance and counsel of specialists is strongly advised while navigating Dubai’s Real Estate Law. The following services offered by our real estate attorney in Dubai may be relied upon for help from both local and overseas investors as well as regular citizens:

  1. Advice on the laws about foreigners buying real estate in the UAE;
  2. To evaluate a property before purchasing it, real estate due diligence services;
  3. While purchasing residential or commercial properties, having legal counsel at all phases of the process;
  4. If any issues with real estate developers, representation in such conflicts;
  5. Advice on resolving rental problems or renting a house.

Our real estate litigation lawyers in Dubai are also available to you and have complete information if you have any inquiries regarding purchasing or renting a property in this Emirate.

you want to know: Delay in Possession Handover of Real Estate: Claim Compensation from Developer

Real Estate Law in Dubai

Real Estate Law No. 7, approved in 2006, is the fundamental law governing property ownership in Dubai. The passage of this legislation, which permits foreigners to purchase and rent property in Dubai, was the most significant step toward liberalizing the real estate market in that city. As long as they have a government of Dubai clearance, foreigners may lease property for up to 99 years. Property ownership in this situation is regarded as freehold.

When renting a property, contracts are often negotiated for a year with the option of extension for foreign nationals leasing residential properties in Dubai. In Dubai, landlords are not permitted to raise rent while a lease is in effect, and at its conclusion, the sum asked cannot be increased by more than 15%. As a result, renters’ rights are also highly well safeguarded. With current details on the local property regulations that apply, our Real Estate Litigation Lawyers in Dubai is at your disposal. Furthermore, don’t hesitate to ask for assistance if you need us to confirm any contracts.

The acquisition of a variety of properties in Dubai, whether for residential or commercial purposes, is permitted by foreign investors. Our real estate litigation lawyers in Dubai at HHS Lawyers and Legal Consultants can help you with every step of the acquisition process, from the first verbal agreement and negotiation with the seller to signing the official purchase documentation.

Hazim Darwish

Hazim Darwish, is a Senior Partner of HHS Lawyers in UAE. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. Hazim Darwish also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators.