“Developers and real estate investors in Abu Dhabi now have a way to resolve legal disputes.”
New regulations will guarantee that no Abu Dhabi developer may “automatically” end sales agreements.
Off-plan related property issues in Abu Dhabi no longer require court proceedings.
That will save a great deal of time and money on legal fees for developers and real estate investors. According to the emirate’s newly amended regulations, Abu Dhabi Real Estate Centre is now the venue for any such disputes.
How will the new regulations affect off-plan investors in Abu Dhabi?
The rights of property investors are also addressed at the same time. According to Al Omaira, “the new procedures safeguard the buyer’s rights before the termination.”
Verification of the developer’s adherence to the authorised project completion schedule is a prerequisite for terminating the SPA.
“The buyer must be notified and the Abu Dhabi Real Estate Centre will confirm this.”
Since a new rule has been introduced by ADREC, it states that property buyer’s right are intact if required to seek the courts or arbitrate.
Authorities in several emirates are using their real estate departments to monitor disputes involving real estate wherever feasible. Experts in the real estate business are supposed to hear the arguments and then render decisions. Consequently, the entire dispute resolution procedure is accelerated.
No “automatic termination”
Al Omaira highlights that a developer’s discovery of a problem with one of their off-plan customers does not automatically result in the termination of an SPA.
He went on to say, “The new amendments do not imply automatic termination.”
“ADREC reviews the off-plan SPA termination process to make sure developers adhere to the correct regulatory protocols. and follow the authorised project completion schedule.
“The regulatory function of ADREC will introduce an extra degree of accountability with the goal of safeguarding the rights of both parties.”
The new real estate regulations in Abu Dhabi
Abu Dhabi recently updated its real estate regulations, which included stricter guidelines for property ads and how brokers are allowed to promote them.
“Finally, we have a system where the owner has to authorise the agent to advertise the property, via an online permission” said Andrew Covill, Director of Henry Wiltshire International, an agency with more than 11 years of presence in Abu Dhabi
This means property agents have to get ‘Madhmoun’ permits before they can take on a property’s promotion. What this will do is ensure that property buyers in the emirate only get to deal with licensed operators.
“For years, we have suffered a situation where (Abu Dhabi property) listings have been duplicated multiple times and blatantly fake and unauthorised listings were published,” said Andrew Covill, Director of Henry Wiltshire International.
“Finally, we have a system where the owner has to authorise the agent to advertise the property, via an online permission.
“The number of listings has reduced (now), which will create a better experience for property seekers. There is still some way to go to police the system further and take action against fraudulent attempts to circumvent the system.
“ADREC’s plans of further improvements, including broker contracts with fee agreements whereby the agent is contractually tied to the seller. This, in my opinion would be a huge step forward towards a more mature and professional market.”
Henry Wiltshire International welcomes the newly introduced real estate regulations in Abu Dhabi, which directly address longstanding concerns from property buyers and investors. The enhanced dispute resolution framework, safeguarding of buyer rights in off-plan transactions and the implementation of the Madhmoun permit system mark a significant step towards a more transparent, accountable and professional market. These reforms elevate the emirate’s real estate landscape and reinforce trust between all stakeholders.
For any enquiries on real estate in Abu Dhabi, please contact us at +971 56 484 3380.
