Cancellation notices to Downtown Dubai defaulters

Property defaulters in Dubai’s master developer Emaar Properties' Downtown Dubai project, who have failed to pay several of their installments on time, have been served the final termination notice.

Naming the owners of units in its Downtown Dubai project, the property developer has issued a warning in local newspapers to the defaulting landlords.

This follows notices issued by Mizin, the master developer of Remraam project in Dubailand, who issued such notices earlier last month. Read: Defaulting property investors in Dubai given cancellation notices.

Emaar defaulters have been given a notice of 30 days to rectify the default, failing which action will be taken against them in accordance with Law no (13) of 2008 as amended, and its Executive Regulations, Dubai Land Department (DLD).

“If you fail to pay the amount due within the specified period DLD shall take the necessary legal proceeding pursuant to clause No. (11) of the aforesaid,” reads the notice (scroll down to read what Article 11 of Law No (9) of 2009 says).

The customer service executives of the property developer available on its toll free number were not able to comment on the matter.
Emaar’s prestigious developments include the Emirates Hills, Dubai Marina, Downtown Dubai, The Meadows, The Greens, The Views, The Springs, Arabian Ranches, The Lakes and Emaar Towers.

The developer has reported robust sales this year so far. Emaar sold real estate developments worth Dh6.3 billion ($1.7 billion) in Dubai in the first six months of 2013, nearly four times the sales during the same period in 2012 at Dh1.6 billion ($436 million).

To date, Emaar has handed over approximately 36,600 units including some 20,900 apartments and around 15,700 villas. Emaar has also completed more than 4.3 million sq ft of commercial space, of which 690,000 sq ft was in international markets.

Law No (9) of 2009 amending certain provisions of Law No (13) of 2008 regulating the interim real estate register in Dubai

Article (11)

1. In the event the purchaser shall be in default of any of the terms and conditions of the contract for the sale of a real estate unit entered into with the developer, the developer must notify the department of such default. Thereupon, the Department shall give the purchaser, by hand, registered post or e-mail, a 30-day notice to fulfill his contractual obligations.
2. If at the end of the notice period stipulated in the preceding paragraph the purchaser has not fulfilled his contractual obligations, the following provisions shall apply:

a. in case the developer has completed at least 80% of the project, the developer may keep the full amounts paid and request the purchaser to settle the remaining amount of the contract price. If this was not possible, the developer may request that the property be auctioned in order to collect the remaining amounts due to it.

b. in case the developer has completed at least 60% of the project, the developer may revoke the contract and deduct up to 40% of the purchase price of the real estate unit stipulated in the contract.

c. in case of projects where construction commended but did not reach 60%, the developer may revoke the contract and deduct up to 25% of the purchase price of the real estate unit stipulated in the contract;

d. in case of projects whereat construction has not yet commenced for reasons beyond the developer’s control without any negligence or omission on its part, the developer may revoke the contract and deduct up to 30% of the total amounts paid by the purchaser.

3. For the purposes of paragraphs (c) and (d) of this clause 2, the term "construction" shall refer to cases where the site of the project is handed over to the contractor and the construction works have commenced in accordance with the designs approved by the concerned authorities.

4. For the purposes of paragraph (b), (c) and (d) of the foregoing clause, the developer shall return the amounts due to the purchaser within a period not exceeding one year from the date of revocation or within a period not exceeding sixty days from the date of resale of the real estate unit, whichever comes first.

5. Notwithstanding the provisions of clauses 1 & 2 of this Article, the agency may, following a grounded report, decide to cancel a real estate project, in which case the developer must return to the purchasers all the amounts paid by them in accordance with the provisions of Law No (8) of 2007 concerning Escrow Accounts of real estate developments in the emirate of Dubai.

6. The provisions contained in this Article shall not be applicable to contracts of sale of lands where sales were not made off-plan as they shall remain governed by the provisions contained in the contract entered into between the two parties thereto.

7. The provisions of this Article shall apply to all contracts entered into prior to the entry into force of this Law.

Notice of cancellations served

- Investor receives a notice of cancellation, giving him 30 days to comply.

- During that time, the investor can register his "objection" with the Legal Affairs Department of the DLD.

- In response to the objection, DLD will schedule a meeting with the developer, investor and a representative of the department in an effort to achieve a settlement.

- If the settlement is not achieved, after 30 days, the notice of cancellation expires and the cancellation becomes official.

- At this point, the DLD will send a notice of termination. If the DLD makes a ruling in favour of the investor, it will notify the developer and expect them to comply with that decision.

Follow Emirates 24|7 on Google News.