Dubai Land Department sends out notices

The Dubai Land Department (DLD) is in favour of resolving issues between the developer and the investor through mediation rather than by initiating legal action against defaulters, a senior government official said.

"We are in favour of mediation and that is our principal aim. We still believe problems can be resolved through talks," Mohammed Sultan Thani, Assistant Director-General of Dubai Land Department, told Emirates Business.

Dubai Executive Council's decree 6 of 2010 gives the department the authority to act as a mediation service for disputes between developers and purchasers.

Earlier, news reports said the department had served legal notices, stating: "Investors who fail to make outstanding payments within two weeks could lose their property."

According to Thani, ample time has been given to investors to correct their position on defaults before cancellation notices are served.

"Notices have been served to investors who have failed to comply with the legal provisions. Developers had given them ample time to pay up their dues. If the investor remains 'adamant' and does not pay, then there is no option for the developer," he said.

According to the department, a 30-day notice is sent to an investor to pay up the dues and if no response is received within that period, another 15-day notice is served. Following this period, the department cancels the contract. "We need to cancel the contract so that developers can sell the properties again. There is a need to remove the past owner's name to allow resale of property," Thani added.

According to the decree, a developer does not need to sell at public auction if he completes more than 80 per cent of the project and may elect to terminate the contract and retain up to 40 per cent of the purchase price.

Thani said the investor can challenge the cancellation notice with the Land Department or move the property in court.

As reported by this newspaper earlier, the decree had formally empowered the land department to cancel projects on the basis of a technical report and offer mediation services in case of disputes.

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