Dubai liquidates Cancelled Real Estate Projects
By a decree issued last July 2013 by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, a special legal committee will be set up in order to liquidate canceled real estate projects in Dubai.
The mission of the judicial committee is to settle disputes between property developers and investors over canceled projects. The committee will provide settlements, resolve grievances and address procedural issues in addition to the liquidation of projects that have been decisively canceled by the Real Estate Regulatory Agency (RERA) as per Law No. (13) of 2008 and its regulations.
In order to carry out its duties, the committee is authorized to appoint experts and to seek the assistance of auditors to examine the financial status, cash transfers and deposits in escrow accounts. The money of investors will be refunded after selling the developers assets in the auction or by using the money available in the escrow accounts.
Fahmy Hallag Head of Litigation Team at Al Suwaidi & Company commented “the committee will be more effective in protecting the investor’s rights. It will help parties save time and efforts by taking a comprehensive approach to the settlement and resolution of issues. The committee will have access to resources such as purchasers list which will enable it to estimate the money available in the escrow accounts. In addition, the committee’s decisions will be final, not subject to appeal and will be carried out through all Dubai courts”.
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