Busiess law - Research Paper Example

lang=04 RERA seeks to aim transparency and effectiveness as a regulatory body in the conduct of its day to day activities in various real estate transactions. RERA is actively and constructively enforced new laws and regulations, as well as imposing the appropriate penalties, which include fines and removal from the authorized developer and broker registers.5Taylor, C. (2008)6. Getting the Balance Right, The Report: Dubai 2008.7 Oxford Business Group.8 In April 2009, Dubai has made significant changes in the cancellation of real estate projects pursuant to Law No.

9 of 2009. Specifically, Section 5 of Law No.9 has empowered the Real Estate Regulatory Agency (RERA) to cancel a real estate project. Hence, the developer must return to the purchaser all the amounts paid in occurrence of such event. “This provision has energized the investor community, insofar as it mandates that developers should give investors a 100 percent refund if a project is cancelled”. Yamalova, L.9 (2009)10. ‘Ambiguity Prevails Over RERA Regulations’11. . end of the notice period stipulated in the preceding paragraph the Purchaser has not fulfilled his contractual obligations, the following provisions shall apply: a.) “In case the Developer has completed at least 80% of the project, the Developer may keep the full amounts paid and request the Purchaser to settle the remaining amount of the contract price.

If this was not possible, the Developer may request that the property be auctioned in order to collect the remaining amounts due to it; b.) In case the Developer has completed at least 60% of the project, the Developer may revoke the contract and deduct up to 40% of the purchase price of the Real Estate Unit stipulated in the contract; c.) In case of projects where construction commended but did not reach 60%, the Developer may revoke the contract and deduct up to 25% of the purchase price of the Real Estate Unit stipulated in the contract; d.) In case of projects whereat construction has not yet commenced for reasons beyond the Developer’s control without any negligence or omission on its part, the Developer may revoke the contract and deduct up to 30% of the total amounts paid by the Purchaser.

”14Article 11, Sec. 2 Law No. 9 of 2009. ‘Real Estate Related Laws-Law No. 9 of 2009’15, Al Rowaad Advocates and Legal Consultancy16. Retrieved on May 20, 201117, from the World Wide Web: http://www.awf.ae/law-9-2009.html.18 The enactment of Law No. 9 also provides that in case “RERA may, decide to cancel a real estate project, following a grounded report, in which case the Developer must return to the Purchasers all the amounts paid by them in accordance with the provisions of Law No (8) of 2007 concerning Escrow Accounts of Real Estate Developments in the Emirate of Dubai”.

19 Article 11, Sec. 5 Law No. 9 of