Greens flat opens Dubai auction today

A 1094 sqft apartment in the Greens will be the first property to go under hammer today at the Dubai Land Department.

In a public auction notice, published in an English daily, the property to be auctioned is located in the Greens, Emirates Hills Second, Al Dhafrah3, with the property value set at Dh1 million.

On Monday, this website said that the Land Department will restart property auctions, including foreclosed properties, from this month.

Bidders must pay 20 per cent of the initial price of the auctioned property by cheque and should register that payment with the concerned officer in the Tasarufat department before the auction. The cheque will be returned to any unsuccessful bidder. The bidder will also have to present a valid ID prior to the auction, the adverisement said.

Procedurally, once the Dubai courts have made an order for a property to be sold at public auction in accordance with the Dubai Mortgage Law, the court will send a letter to the land department requesting that they arrange for the property to be auctioned. The department will arrange for the auction to take place subject to the procedures and rules put forward by them. Currently, the department has its own informal rules and procedures governing auctions.

“However, they have indicated that a formal set of auction regulations are expected to come into force within the next few months,” Nick Clayson, Partner and head of real estate, Middle East, Norton Rose Group, had told this website.

In order to set a reserve price on the property, the department will arrange for a valuation of the property to be undertaken. It is not clear on what basis this valuation is carried out or the factors taken into consideration and there is a risk that the resulting value will be much lower than the mortgage amount.

The Mortgage Law also provides that where the proceeds of the sale are not sufficient to cover the debt, then the bank may claim the difference from the borrower.

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