Buyers in Dubai may eventually decide to seek relief because they can now purchase an insured property against any structural damage. Whenever any structural damage is revealed after the assets are handed over, buyers are still in a dilemma to this day. Due to their lack of proper laws, they were unable to obtain any legal action or compensation. But, the Real Estate Regulatory Authority (RERA) finally decided to change this scenario and introduced a new law that would make developers liable for damages witnessed after the property is handed over. Buyers are free to contact the regulatory body whenever it appears that the law has been violated. Millions of apartments, furnished villas, hotels and Dubai hotel apartments in Dubai will be covered under the new law.
Dubai’s buyers can finally decide to have a sigh of relief, since they can buy now properties insured against any structural damages. The buyers used to be left in lurch until today whenever any structural damage came to light after the properties were handover. They couldn’t ask for any legal proceeding or compensation due to […]
Investors have in the past opted out of projects, citing a lack of insurance coverage as one reason. However, under the new law, the developer will be held accountable to the courts for any defective structures. For example, any serious cracks in the wall during the first ten years of property transfer may be a case for compensation. Additionally, any electrical, mechanical or plumbing irregularities during the first year can also be challenged. Any manipulation in the construction of Dubai apartments, hotels, furnished villas or Dubai hotel apartments has not been challenged in the courts before because there is no clear framework to do so.
In addition, this law adds more clarity to the building maintenance problem. Under the new directive, the Homeowners Association (HOA) will be set up for each jointly owned property and will be required to look after common areas such as the gym, swimming pool, parking space, and entrance. They have a role to play in overseeing and watching. The buyer's money was used properly. Surprisingly, only five percent of Dubai households have home insurance coverage compared to numbers found in countries such as the USA, UK, Australia or Japan.
HOA formation is a major component of this whole exercise. In each case insurance coverage must be maintained and the beneficiary must pay a premium to each unit owner. Dubai may have entered the practice late, but now it is expected to be taken seriously and buyers and promoters should get used to it now. The city needs it anyway, with many high-end Dubai apartments, hotels, furnished villas and Dubai hotel apartments within its skyline.
Although insurance coverage is a basic requirement for any real estate buyer, the people of Dubai have shown no interest in it in the past, perhaps most of them being short-term buyers. However, one hopes that the introduction of new legislation by the RERA will fundamentally change this scenario and further raise awareness on property insurance. Dubai is also known for its successful business of luxury real estate, which includes luxury hotels, shopping malls, Dubai apartments, villas and Dubai hotel apartments. The new property law by RERA will add more value to its immovable property.
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