Real Estate Cases
Real estate cases always arise due to long-term real estate contracts and their complexities. It is worth mentioning that those contracts are not only effective during the construction stage, but they are also effective during managing the residential and real estate complexes and imposing real estate fees on services. It should be noted that factors such as a long term payment of lease contracts, fluctuations in international and local markets, and the changing conditions of individuals whether positively or negatively substantially affect the ability of individuals to pay due amounts to developers as well as the ability of developers to fulfill promises of completion on specific dates. At first glance, it may seem to the reader that the above-mentioned disputes are the most common real estate disputes, yet, real estate disputes are characterized by a variety of features other than making payments on the part of buyers and meeting delivery requirements on the part of developers.
Real estate disputes that arise from buyers, whether individuals and companies represented by the Firm, can be summarized in scenarios such as failure to start real estate projects, not achieving agreed completion percentages on the defined dates, changing the real estate unit areas and their locations, as well as the variance in the internal designs of the units. In initial agreements, developers often seek that buyers sign agreements that allow them to change areas. In addition, disputes also arise when there is a delay in completion and this happens when the developer is required to deliver the real estate units to the owners, yet, the developer has not finished all the project services such as parks, playgrounds, swimming pools, etc. which are considered necessary requirements for renting real estate units, especially in residential complexes, not buildings. Moreover, it may come to the surprise of buyers that there is a difference or even lack of many services that they consider necessary and that such services were canceled or replaced by others, such as canceling swimming pools in buildings or removing sauna and steam rooms mentioned in the sales brochures and publications issued by the developers. Those actions violate the conditions of sale, contracting, and promises made by the sales staff of those real estate companies. Eventually, due to not seeking professional real estate and legal advice when buying the property, the buyer finds himself/herself involved in exhausting judicial disputes to get his/her rights or to be compensated for the damages.
On the other hand, real estate disputes that arise from developers, that our Firm represents them or provide them with legal consultation services, can mostly be attributed to delay in starting or completion of projects. Such disputes may develop to an attempt to avoiding the contract, as said delays may reach a point that makes them considered a fundamental breach of the contract. Said breach of contract requires avoidance of the contract because its damage overcomes the obligatory feature of the contract. Said disputes may also come as a result of real estate developers not meeting the requirements of suppliers and contractors in large contracting contracts and projects when there are cases of breach of implementation of works and services and their impact on delivery. This may also happen when sales contracts lack conditions that enable the developer to extend completion periods to make room for possible delays since the developer usually gives unrealistic confirmations that do not suit risks of real estate development. Usually, the buyer does not know this background as he/she is only occupied by the need the real estate unit contract being fulfilled by the developer due to thefinancial and banking obligationsresulting from purchasing those units.
Mohamed Al Hajeri Advocates & Legal Consultants Law Firm strongly advises real estate unit buyers not to sign real estate contracts except after a thorough study and full understanding of them. Then, the buyer shall plan and borrow under the guarantee of these contracts and promises. In addition, the buyer shall take into consideration the ability of the attorney and legal consultant to guide him/her and investigate the reputation of the real estate developer in fulfilling its contractual obligations in the market, as well as being keen to fully understand the cost of litigation for real estate units. The latter is considered highly important in light of the fact that some developers set the conditions of resorting to arbitration bodies and the number of arbitrators may not always commensurate with the value of the unit and the cost of litigation may reach up to between 25% to 40% of the unit value, especially in small and medium units whose value are less than a million dirhams. Sometimes, the arbitrators are three, not to mention the fees of hiring an attorney or a legal consultant to represent you in the lawsuit, the thing which does not commensurate with the value of the unit. In cases of breaching real estate contract contracts, our Firm advises clients to send legal warnings that prove breach when facing the developer and urge him to speed up the completion to ensure the success of judicial claims in case of resorting to the judiciary.
Hence, Mohamed Al Hajeri Advocates & Legal Consultants Law Firm represents many clients, whether companies, individuals or developers, in many real estate cases. The Firm also has extensive experience in real estate disputes at the level of United Arab Emirates, especially in the Emirate of Dubai due to the extensive and diverse judicial practice and the Firm strives to guarantee clients’ rights by providing legal representation services in real estate lawsuits to ensure that the client achieves the desired result successfully.
Mohamed Al Hajeri Advocates & Legal Consultants Law Firm represents many clients, whether companies, individuals or developers,before the real estate committees as well as the Land and Property Department, if necessary.