In the case of a property dispute, Article 10 of the Dubai Property Law provides that the liability for breaching an undertaking to transfer any Real Property Right shall be limited to payment of indemnity, whether or not such undertaking provides for an indemnity. Therefore if a seller defaults on his obligations under a Sale & Purchase Agreement and fails to transfer the property to the purchaser, the purchaser can claim damages from the seller for his losses suffered, but cannot force the seller to transfer the property to him. In other words, specific performance is not available as a remedy.
The question arises as to which forum should be utilized for settling disputes arising under this Law? Article 27 of the Law specifically repeals a Decree dated 6th November 1977. That 1977 Decree prevented any property related disputes from being filed at court unless the case was referred to it by the Lands Department. Now that Decree has been repealed and any aggrieved party can now file a claim direct with the Dubai Courts or implement any agreed arbitration process.
The law also stipulates that upon approval of Dubai’s Ruler, non-UAE nationals may be given the right to own properties in some parts of Dubai. They may be given the right to acquire a freehold property, or a 99-year lease property, in areas designated by the Ruler. The law includes 11 chapters comprising 29 articles covering the issues of definitions, general rules, the implementation system of property hold, and the jurisdictions of the Dubai lands and properties Department.
It also stipulates the setting up of a property registration office at the Dubai Lands and Properties Department. This office will be responsible for documenting property rights and their amendments. Its records hold the ultimate evidence against all - without exceptions. Its records cannot be challenged except in the case of forgery.
The law says that a multi-storey property is considered a single property unit that shall be given one entry in the property record. All apartments of a single property unit will have supplementary records that include names of the owners of its apartments, storeys and any common facilities.
