Today, Wednesday, the arbitrator of the Sharjah International Commercial Arbitration Center, Jaber Al Ansari, presented a workshop entitled “The Development of Regulating the Legal Relationship between the Real Estate Developer and the Buyer in the Emirate of Sharjah,” as part of the activities of the new edition of the Sharjah Real Estate Exhibition “ACRES,” which is organized by the Real Estate Registration Department and the Chamber of Commerce. Sharjah Trade and Industry during the period from 22 to 25 January 2025 at the Expo Center Sharjah.
Al Ansari reviewed five main axes about the legal relationship between the real estate developer and the buyer in the Emirate of Sharjah, which were the importance of real estate development, the legislation regulating the real estate developer, the “buyer” investor, and arbitration and settlement of real estate development disputes.
The arbitrator of the Sharjah Center for International Commercial Arbitration said during the workshop, “The importance of real estate development falls under basic pillars, led by the architectural, cultural and humanitarian role, the economic role, and improving the quality of life.”
Al-Ansari defined a real estate developer: “He is the legal person who owns the project or is the beneficiary of the property in the place of the real estate development project and who is licensed by the Department of Economic Development in the emirate to practice investment or real estate development activity. Accordingly, the prominent element in the real estate development process is the commitment to achieving a result.” The right to invest and sell in accordance with the requirements of legal legislation.”
He explained: “Several questions must be answered in this context: Is the project registered with the Real Estate Registration Department, is there an escrow account for the project, the account number, the account custodian, the project completion rate and the expected date of delivery, and is the developer registered with the department and is he the owner of the project or not?” Beneficiary (from a development agreement between the owner and the developer)? Considering that all of this is important to ensure that the developer obtains licenses to sell off-plan and pay the price.”
Al-Ansari touched on arbitration as a means of settling real estate development disputes, and said: “It is a means regulated by law through which a binding ruling in the dispute between two or more parties is decided by the arbitration panel based on the agreement of the parties. Therefore, the disputing parties must choose a neutral party to decide what is disputed.” There is a dispute between them without resorting to the judiciary, and there is an agreement on arbitration, which is defined as the agreement of the parties to resort to arbitration, whether this agreement was made before or after the dispute occurred. Arbitration also contributes to achieving the goals of the legislation regulating real estate development. The appropriate mechanism for resolving real estate development disputes, contributes positively to reducing real estate development disputes, and affects the quality and effectiveness of the governance systems of real estate development companies.”
Al-Ansari explained important concepts in the arbitration system and its structure with the management of the parties, its enjoyment of confidentiality and privacy, the selection of the arbitrator, the selection of specialists, the applicable law, solutions to conflicts of laws, conflicts of jurisdiction, procedural rules, management of procedures, speed, costs, choosing the legal place for arbitration, and the suitability of management plans. crises, innovation, adaptation to technological development, flexibility, finality of arbitration award, and commitment to implementation.”
He also reviewed the various types of arbitration, which are free arbitration, institutional arbitration, temporary measures, emergency arbitrator, expedited procedures, and settlement arbitration.
During the workshop, Al-Ansari went to a detailed explanation of the legislation regulating the real estate development sector in the Emirate of Sharjah, most notably Law No. (10) of 1972 with the real estate registration system, Resolution No. (1) of 1972 regarding the executive regulations of Law No. (10) of 1972 with the real estate registration system, law. No. (92) of 1977 regulating the relationship between landlord and tenant, Law No. (4) of 1980 regulating ownership of buildings consisting of several floors or apartments, and Amiri Decree No. (1) of 1981 issuing the joint ownership system, Executive Council Resolution No. (13) of 2001 regarding naming and numbering streets and real estate in the Emirate of Sharjah, Executive Council Resolution No. (32) of 2005 regarding selling Real estate in the Emirate of Sharjah.
He talked about Executive Council Resolution No. (38) of 2005 regarding the provisions of the pledge and the mechanisms for implementing Council Resolution No. (32) of 2005 regarding the sale of real estate in the Emirate of Sharjah, and Amiri Decree No. (29) of 2008 regarding the establishment of the Real Estate Registration Department in the Emirate of Sharjah, and Law No. (5) of 2010 regarding real estate registration in the Emirate of Sharjah, and Executive Council Resolution No. (25) of 2011 regarding real estate units in The Emirate of Sharjah, which was amended by Executive Council Resolution No. (21) of 2013, Executive Council Resolution No. (34) of 2018 regarding the sale of real estate units in the Emirate of Sharjah, and Executive Council Resolution No. (30) of 2022 regarding non-citizens and Gulf nationals owning real estate in the Emirate of Sharjah. Law No. (2) of 2022 amending Law No. (5) of 2010 regarding real estate registration in The Emirate of Sharjah, and Executive Council Resolution No. (37) of 2024 regarding the regulation of real estate development projects in the Emirate of Sharjah.
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