Dubai introduces new law for cancelled or unfinished real estate projects
- New committee for appraisal of cancelled real estate projects
- Amendments to Interim Real Estate Register
The UAE’s Vice President and Ruler of Dubai, His Highness Sheikh Mohammed Bin Rashid Al Maktoum has issued new legislation to regulate incomplete and revoked property projects in the city. As per Decree No. (33) of 2020, a special committee is currently being set up to oversee the liquidation of such developments. Read on for more insight into the new Dubai law on unfinished and cancelled real estate projects.
New committee for cancelled or unfinished real estate projects in Dubai
According to the new decree, the name of the special committee has changed to the Special Tribunal for Liquidation of Cancelled Real Estate Projects in the emirate of Dubai and Settlement of Related Rights. The new entity will substitute a previous committee that was set up in 2013, which was responsible for surveying claims related to cancelled real estate projects in Dubai.
According to a post shared by the Dubai Media Office, the Dubai Judicial Council will be responsible for electing the members of the Special Tribunal. The new Tribunal will also:
- Be responsible for resolving disputes and complaints — from cancelled or unfinished projects — that were not finalised by the previous committee
- “Define the rights of investors and purchasers” after liquidating assets of cancelled projects.
Additionally, cases regarding suspended or rescinded projects cannot be filed at any courts in Dubai, including DIFC Courts, since the new Tribunal will have jurisdiction over all related property disputes. As per the official statement, all judgments made by the Tribunal will be “final and incontestable.” Furthermore, all decisions made by the Tribunal will be executed by the Execution Court at Dubai Courts.
Amendment regarding the Dubai Interim Real Estate Register
Apart from the new Dubai law on unfinished and cancelled real estate projects, a new amendment was also introduced regarding the emirate’s Interim Real Estate Register. According to the amendment, developers who fail to initiate real estate projects for unforeseeable reasons “must refund the entire amount paid by purchasers.” The same rule also applies to real estate projects that were cancelled by the Real Estate Regulatory Agency (RERA).
When will the new laws become effective?
Both decrees will become effective after they are published in the Official Gazette.
That’s all for our review of the new Dubai law on unfinished and cancelled real estate projects.
Are you a foreign investor who is interested in the country’s real estate market? International investors interested in purchasing a property in the emirate must consider the foreign property ownership rules in the UAE before investing in the perfect property.
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