Verifying/Assuring One’s Rights
A positive scenario for purchasing off-plan real estate is receiving handover of the property as per the terms and conditions agreed, and according to schedule.
Negative scenarios are: the project is either delayed, placed on-hold, under-cancellation, or cancelled. But in all of these scenarios the project can still be reactivated. Subsequently, the handover can still occur.
A worst case scenario is that the project is transferred to the Real Estate Committee for liquidation. That’s not so good! Liquidation, equal to bankruptcy of a project, means auction. And auction means the asset being sold. And asset in a project is the plot/land. Valuation of the land is in most cases not even 30% of the total amount collected by the developer from the end-users. This means that the end-result of the sales shall provide a refund of maximum 30% of the end-user’s paid amount. A loss of approx. 70% of the amount invested, which has been stuck for years already.
The worst case scenario is that the end-user is not known to the authorities and therefore no disbursement of funds is done after liquidation of the project. A loss of 100% of the amount invested.
Verifying/assuring one’s rights in the project is mandatory, no matter whether the project is in the cancellation or in the liquidation state! Due diligence, and subsequently rectification, is a major milestone for every investor in an off-plan and in-default real estate project.
Remaining Up To Date
Another major milestone is to remain up to date, at all times, about the state of the real estate project.
Even though we expect that the developer takes upon itself the responsibility to inform the end-users about any changes in the state of the project, we have experienced that this is not done in most cases.
Although the authorities do their best to provide information and updates where possible, parallel to regulating all the policies, we can’t expect them to be on top of everything 24/7.
Having knowledge about a certain situation allows for a better and more complete decision-making. Imagine a scenario where a project was almost auctioned and the current developer manages to bring in a joint venture party, in time, with sufficient funds to complete the construction. While you are waiting for disbursement, suddenly you receive a phone call to pay up the next instalment. And this can occur also vice versa of course.
Therefore, another mandatory task for every investor in such projects is to follow up the project status.
Our experience teaches us that end-users living in the UAE have a major advantage compared to the ones living outside the UAE. Time, costs, efforts, distance, etc…, they are all factors that influence your ‘happiness meter’ in trying to verify/assure your rights, and follow up on the project status.
How We Help
We Take Care of the Hassle
We are located in Dubai, have extensive experience in real estate development, and we are a joint venture between management efficiency and solid and in-depth legal expertise.
Our main tasks are:
Making sure we can legally represent you, once you subscribe.
Gather from you all the information you have in regards to your investment.
Study this information thoroughly.
Undertake due diligence at the respective authorities in regards to your rights.
Provide you a complete due diligence report with our findings and a consultation in case rectification is required.
Follow up on the status of your project, whether at the Land Department or the Court Committee.
In case of the Court Committee, we also attend the court hearings and provide you a summary of the court preceedings.
Provide you, periodically, with an updated Project Status Monitoring Report.
What We Do More
Some of the other tasks we are able to assist with are:
Rectify your investor details at the respective authorities in case of a negative due diligence outcome.
Follow up the disbursement of your financial rights in the liquidation process at the Real Estate Courts, in case of auction.
Receive the disbursement on your behalf at the Real Estate Courts, subsequently disburse to you.
Represent a majority of the community of investors/end-users in a real estate project with the objection to mediate on their behalf at the Real Estate Courts or at the developer’s office.
Any other real estate related activity where a legal representation is required.
We also provide guidance free of charge if you wish to do the Due Diligence and the Project Status Monitoring by yourself. Our main aim is to make investors aware of these important steps. But in cases where it becomes too costly for you, we advise to subscribe to our services instead and benefit from reduced costs, and allow us to do the work on your behalf.
REIRS is founded as a Joint Venture between Al Kamali Advocates & Legal Consultants and BrightCircle Management Consulting. Their collaboration is established on https://bridgepartners.ae. The aim of this joint venture is to assist real estate investors living outside the UAE to verify, track, and monitor their investments in Dubai, and subsequently also assuring their rights.
Al Kamali Advocates & Legal Consultants
Al Kamali Advocates and Legal Consultants (AKA) is a leading full-service law firm with emphatic presence in Dubai providing top-notch legal services to individual and corporate clients locally and internationally. Founded since 1997, the pioneering partners Ahmed Al Kamali and Mohamed Al Kamali inspired the firm with a unique sense of mission to provide clients with sound legal advice and innovative business solutions.
AKA has developed a reputation for resolving complex legal and commercial issues across borders. The firm compliments its corporate and commercial legal services with a solid litigation and alternative dispute resolution practice. Areas of practice include real estate law, corporate and commercial practice, litigation and sports law. Equipped with a diverse team of lawyers -well versed in local laws and practices, existing and emerging areas of law, current global trends, regulatory and operational frameworks for businesses- AKA is in extreme readiness to be deployed for the attainment of our clients’ goals.
AKA’s legal strengths are founded on three cardinal strategies: providing legal advice that is accessible and commercially oriented; assisting clients in analyzing transaction related risks and regulatory compliances; providing legal remedies either through litigation, ADR or negotiated settlements.
BrightCircle is a leading management consulting firm that serves private and public institutions. We help our clients make better decisions, deliver durable success and unique value.
Advisory is at the heart of everything we do. We advise clients, at every level of their organization, on their most critical challenges and opportunities: strategy, finance, operations, digital transformation and strategy, analytics, and M&A.
Today’s companies face constantly changing and increasingly complex environments, which call for timely and effective decision-making. We help our clients implement actionable responses to these changes, while building their internal capacity to deliver sustainable business results in an uncertain world.
We listen and advise, we do not sell. At a time when many are going for industrialized and standardized advice, we believe in customized approach and bespoke advice.
Frequently Asked Questions
Jewellery & Gemplex III
37 Rue Dancet 1205
Al Kamali Advocates
Al Maktoum Tower
Al Maktoum Street
+971 (0)4 222 2228