His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as the Ruler of Dubai, has issued Decree No. (21) of 2013 setting up a special legal committee for the liquidation of cancelled property projects in the emirate of Dubai and the settlement of rights disputes related to such projects.
Article three of Decree No. (21) of 2013 stipulates that all resolutions and decisions issued by the special legal committee are final and not subject to appeal. Dubai Courts will be tasked with the implementation of such resolutions and decisions.
The special legal committee is tasked with the settlement of disputes between property developers and investors over cancelled projects in addition to the liquidation of projects that have been decisively cancelled by the Real Estate Regulatory Agency (Rera) as per Law No. (13) of 2008 and its regulations. The settlement of rights disputes, grievances and complaints will be carried out noting that settlement fees will be deducted.
In order for the special legal committee to carry out its duties, it is entitled to appoint specialists and consultants. Auditors are to be appointed on the expense of the property developer to carefully examine the financial status, cash transfers and deposits related to the cancelled projects in question. The committee has the right to take actions and issue decisions to guarantee the rights of those who have purchased property that fall into this category.
As per article three of decree, neither Dubai Courts nor Dubai International Financial Centre Courts will accept appeals or cases that fall under the specialty of the aforementioned committee. Such complaints, cases or appeals will therefore be transferred to the special legal committee set up as per the decree.
The decree halts the implementation of relevant verdicts and resolutions issued by all courts in the emirate of Dubai - including the Dubai International Financial Centre Courts - which fall under the specialty of the special legal committee.
The decree is effective from its date of issuance and shall be published in the official gazette.
Our Property Editor, Parag Deulgaonkar adds:
Dubai Government bond prospectus, issued in 2012, said 217 projects had been cancelled as of May 31, 2011.
The number “on hold” projects in Dubai have declined to 253 by end of December 2012 from 291 in March 2012, the January 2013 prospectus revealed.
It said 22 projects got completed in the last nine months of 2012.
Rera said 187 projects have been completed since the beginning of 2009; 253 projects are on hold; 232 projects are likely to be completed in due course.
Each of these 253 registered projects is likely to qualify for either the Tayseer or the Tanmia initiative, the new bond prospectus had said.
Investor Protection Law is Ready
Emirates 24|7 reported last week that the Real Estate Investor Protection law, or 'Tanweer', as it is called now, is ready and awaiting clearance from higher authorities for its release.
Our news portal had first reported on the Tanweer initiative in April 2012, with DLD stating that the aim of the new initiative was to minimise legal disputes and protect investors' rights.
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