Ask the Law - Property queries : April 2011
Every month, Property Magazine invite readers to have their legal property questions answered by Jerry Parks, real estate expert based in our Dubai offices.
Q I filed a case against a developer at the Dubai International Arbitration Centre (DIAC). I also stopped making payments to the developer as per the payment plan after they breached the contract. My question is: will the Land Department, while arbitration is in progress, terminate my contract and register the apartment under the developer's name for non-payment in accordance with Law No. 13 of 2008? Or is the Land Department legally bound to wait until the dispute is legally resolved?
Q I purchased an apartment in Al Hamra Royal Breeze Complex in Ras Al Khaimah. The intention was to use it initially for rental income from golfing breaks, with a period set aside each year for my family and then to retire there, since my daughter lives in Dubai. I recently made enquiries with respect to entitlement to residence visa and e-Gate card once retired and was told that as per the new rules for freehold property, now property owners will get entry permit, which is renewable every six months. This would appear to indicate that foreigners purchasing residential property would no longer be entitled to a residence visa but instead will only be considered for a six-month renewable visit visa. I think this will have a significant effect on existing and potential investors in the UAE, although it is not clear to me whether this only applies to Dubai or other emirates as well. I need clarification on the issuesince it has already impacted our plans to purchase a second property in RAK. In the absence of clarification, we are now looking at options elsewhere.
Lawyers Jerry Parks
These questions were first published in Property Magazine and are reproduced with the kind permission of the editors.
