The Dubai Court of Cassation (the Supreme Court) has issued a both surprising and at the same time shocking ruling that may have far-reaching implications on the arbitration of real estate matters in the emirate.
In Cassation Appeal No 14 Year 2012 Real Estate, the court ruled that rules relating to registration of properties in the real estate registry in the emirate are matters of public policy and, thus, may not be subject to arbitration.
The case involves a dispute between a developer and a purchaser of a number of units. The purchaser instituted arbitration proceedings before the Dubai International Arbitration Centre (DIAC) against the developer for failing to meet its obligations, inter alia, of registering the units in the real estate registry and demanded a refund. The developer brought a counterclaim and an award was issued granting the purchaser part of his claims.
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