Dubai Executive Council's decree No6 of 2010 has formally empowered the Land Department of Dubai to cancel projects on the basis of a technical report and offer mediation service for disputes, according to Hadef and Partners.

The law firm, in a legal update that claimed it has reviewed a copy of the regulation, said yesterday the decree dealing with the executive regulations of Law No13 of 2008 (regulations) has now been signed and "is awaiting formal publication in the official gazette".

As per the legal update, the Land Department can cancel a project in different cases, some of which include where the developer does not initiate construction without justifiable reasons after obtaining required approvals; the developer breaches the Escrow law; the developer fails to commence the project due to gross negligence or the developer declares bankruptcy.

"The regulations, while providing some much-needed clarity over many issues, also throw up some interesting characteristics such as reinforcing the wide degree of power and discretion the department holds in respect of projects," the law firm said.

Experts now believe the regulations will allow the Real Estate Regulatory Agency to classify projects that have been cancelled or put on hold.

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