Dubai will set up a new legal centre to settle rental disputes in the emirate within 30 days.
The facility, headed by a team of legal professionals and experts, will have the power to rule in all rent disputes, including those in free zones. The centre will comprise of judicial and administrative sectors and appeals to the ruling from the facility will be allowed only in rare cases. Only rulings on rental claims worth more than AED 100,000 can be appealed.
However, the centre will not handle settlement of rental disputes arising from financial leasing contracts (lease to buy) and those arising from long-term rent contracts that fall under the provisions of Law No. 7 of 2006 concerning property registration in Dubai.
The centre will do its best to settle disputes amicably within 15 days out the 30-day period that it has to make a decision on case. However, this period may be extended by the council’s head.
Will this move make Dubai’s real estate sector more competitive globally? We’ll have to wait and watch.