Dubai saw the first addition to its real estate laws in February 2010 with the publication of Resolution 6 of 2010. The resolution implements Dubai Law 13 of 2008 in relation to off-plan sales and the Interim Real Estate Register and was seen by many as providing much needed clarity in a number of areas including: remedies available to developers where purchasers had defaulted on payment installments; termination rights for both developers and purchasers; and tighter controls on off-plan sales by developers and brokers through increased registration requirements.
Whilst the resolution provides greater protection for purchasers and investors, there remains significant protection for developers, who may, depending on progress of construction, terminate a contract and retain the entire sum paid by the purchaser and sell the unit to receive the remainder. Even where no construction has commenced, the developer may retain 30% of the contract price where failure to commence works was for reasons "beyond the developer's control", but not where the delay is as a result of the developer's failure or negligence. Purchasers should, therefore, carefully monitor their development's progress with the Dubai Land Department (DLD), particularly as the resolution also provides for the DLD to act as mediator in any disputes arising between the developer and purchaser.