Cityscape Intelligence is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Ruler of Dubai issues new legislations on unfinished and cancelled real estate projects

Dubai Under Construction Project
Following its activation, the Decree prohibits all courts in Dubai, including DIFC Courts, to accept any disputes, appeals or complaints related to unfinished or cancelled real estate projects

Government of Dubai Media Office: In his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE His Highness Sheikh Mohammed bin Rashid Al Maktoum issued Decree No. (33) of 2020 on the special committee for unfinished and cancelled real estate projects in Dubai, formed pursuant to Decree No. (21) of 2013.

Pursuant to Decree No. (33) of 2020, the name of the special committee for unfinished and cancelled real estate projects in Dubai has been changed to the Special Tribunal for Liquidation of Cancelled Real Property Projects in the emirate of Dubai and Settlement of Related Rights. The new name will substitute the previous name of the Committee in all the legislations applied in Dubai.

According to the Decree, the Chairman of the Dubai Judicial Council will appoint the chairman and members of the new Special Tribunal, define the frameworks for its meetings and decision making and judicial processes.

The Decree authorises the Tribunal to perform the following:

  • Review and settle all disputes, grievances and complaints for which the previous committee did not issue final decisions or judgments.
  • Review and settle disputes and complaints arising from unfinished cancelled or liquidated real estate projects.
  • Settle disputes related to unfinished real estate projects that have been cancelled pursuant to Law No. (13) of 2008 and thereafter referred to the previous Committee by the Real Estate Regulatory Agency (RERA).
  • Determine the rights and obligations of each developer if the real estate project is transferred from one developer to another.
  • Liquidating and ensuring settlement of all rights related to a project cancelled by the RERA
  • Define the rights of investors and purchasers of unfinished real estate projects and settle all disputes, grievances and complaints related to both unfinished and cancelled real estate projects.

The new Tribunal is authorized to review both normal and urgent matters and issue judgments or amicable settlements. The Chairman of the Tribunal may assign one or more members of the Tribunal to review and issue judgments on such matters. The Chairman of the Tribunal may also form subcommittees, appoint auditors, and issue orders to the trustees of the project’s ESCROW account in all matters related to the liquidation of cancelled real estate projects.

The Decree also details the responsibilities and obligations of the Real Estate Regulatory Agency (RERA) related to supporting the Tribunal in performing its duties and responsibilities. RERA will prepare detailed reports about unfinished projects and provide its recommendations to the Tribunal to help settle disputes or refer the project to another developer.

Following its activation, the Decree prohibits all courts in Dubai, including DIFC Courts, to accept any disputes, appeals or complaints related to unfinished or cancelled real estate projects, or those that fall under the jurisdiction of the Tribunal.

All decisions and judgments issued by the Tribunal are final and incontestable, and the Execution Court at Dubai Courts will execute the Tribunal’s judgments.

The Chairman of the Dubai Judicial Council will issue a resolution naming the entity responsible for providing administrative and technical support to the Tribunal.

This Decree substitutes Decree No. (21) of 2013 on the formation of the special committee for unfinished and cancelled real estate projects in Dubai. The new Decree annuls any other legislation that contradicts or challenges its articles. The Decree will be published in the Official Gazette and is effective from the date of its publication.

His Highness also issued Law No. (19) of 2020 amending Article (11) of Law No. (13) of 2008 on the Interim Real Estate Register in Dubai.

According to the amendment, if the developer did not initiate construction works in the real estate project due to reasons beyond his control, or if the project was cancelled due to a decision issued by the Real Estate Regulatory Agency (RERA), the developer must refund the entire amount paid by purchasers.

Any other legislation that contradicts or challenges the articles and provisions of Law No (19) of 2020 is considered null. The new Law will be published in the Official Gazette and is effective from the date of its publication.

Photo Credit: World Property Journal

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish