Shocking, unbelievable...!!! This law is totally unfair and one-sided, in favour of the developer. Pls can anyone provide me contact details of Dubai Property Investors Group or Nigel Knight. Thanks
On Sun, Apr 19, 2009 at 9:32 AM, Muhammad Akber <dubai...@gmail.com> wrote: > *NEW LAWS - DUBAI LAND DEPARTMENT* > > * * > > *19 April 2009* > ABU DHABI - The Dubai Land Department is planning to issue an amended > property law that will determine refunds for investors who default on their > payments based on construction progress of the project, according to lawyers > briefed on the matter. > > The move will bring clarity to the property market in Dubai, where a credit > squeeze and the effects of the global financial crisis have led to defaults > by home buyers. But some investors have criticised the amendment for being > too heavily in favour of developers. > > Lawyers say the amendment to article 11 of Dubai Law 13 of 2008 will > stipulate that in cases where a buyer defaults and the developer has > constructed at least 80 per cent of the project, the buyer loses all money > paid to that point. The home can then be auctioned to compensate the > developer for the rest of the cost. > > If a developer has completed at least 60 per cent of the project and the > buyer defaults, the developer is entitled to keep 40 per cent of the > purchase price. > > But if a developer has completed less than 60 per cent of the project, it > can only keep 25 per cent of the purchase price. > > If the developer has not been able to start construction "without any > negligence or omission on the developer's part", the developer may keep 30 > per cent of the money paid by the buyer to that point. > > Developers would have to refund any money due to the purchaser within one > year, or within 60 days of the resale of the home. > > A legal briefing from the law firm Clyde & Co said the amendment "provides > much anticipated clarification regarding the procedures required to be > followed by developers in respect of defaulting purchasers, as well as the > rights of developers to retain purchaser monies upon cancellation". > > The original law specified that if a buyer defaulted on payments to the > developer, the buyer would be able to recover 70 per cent of any money they > had turned over to that point. > > But when the property market started to face difficulties last autumn, the > Real Estate Regulatory Agency (RERA) issued an interpretation of the law > that said the developer could retain 30 per cent of the total price of the > property. In some cases, this meant the developer could keep all payments a > buyer had made to them. > > Officials from RERA later admitted that the interpretation was an emergency > measure intended to prevent a wave of defaults that would cripple the > property sector. > > The new amendment, called Dubai Law No. 9 of 2009, will not only provide > more specific terms but be retroactive for all property contracts signed in > Dubai. If a contract between a buyer and a developer has a contrary clause, > it will be rendered void, according to the Clyde & Co briefing. > > Emad Eldin Farouq, a senior legal counsel with the Dubai Land Department, > told a panel last week that the amendment had been signed into law and would > soon be published in the official gazette of Dubai, according to an article > in Xpress, which first reported the story. The amendment would "maintain the > confidence of investors and safeguard the real estate of Dubai", Mr Farouq > said, according to Xpress. > > But some investors said the amendment did not go far enough in protecting > investors from developers who had delayed construction indefinitely. > > "It is taking away our rights from the way the law was originally written," > said Nigel Knight, a homebuyer and member of the Dubai Property Investors > Group. > > The investors' group handed the Land Department a petition last week asking > for a meeting to discuss concerns it has with the amendment. > > A Dubai Land Department spokesman could not be reached yesterday. > > > > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Investors Club Dubai" group. To post to this group, send email to investors-club-dubai@googlegroups.com To unsubscribe from this group, send email to investors-club-dubai+unsubscr...@googlegroups.com For more options, visit this group at http://groups.google.com/group/investors-club-dubai?hl=en -~----------~----~----~----~------~----~------~--~---
