Dubai developer's public notice to defaulters

A Dubai-based private developer has gone public by issuing default notices to customers, who have not accepted notices earlier.

Though not issued officially by the Dubai Land Department (DLD), the private notice published in a local daily states the customer’s name, nationality and passport number, asking for rectification of default status within 30 days from the date of publication.

“We, Vakson Real Estate – have sent you (customer name, nationality, passport number) a delayed payment notification, which was not received by you.

“This is a final reminder and warning notice, notifying you top make the due payments with 30 days from this notice,” the company notice out today, October 27, reads.

It is most likely that defaulters, who don’t rectify their status, will be served with a termination notice on November 25.

Real estate developers, however, say such warning notices are never issued in local newspapers.
Developers have previously issued notices, asking investors to update their details with the Land Department.

Although developers can issue warning letters, contract termination notices officially issued as per Law number 13 of 2008 as amended and its executive regulations by DLD are legal.

In July, Mizin, the master developer of Remraam project in Dubailand, took the lead to go public, issuing final termination notice on 45 purchasers, who have failed to pay several of their installments.

The notice stated: “In accordance with law number 13 of 2008 as amended and its executive regulations Dubai Land Department (DLD), hereby notifies the purchaser to rectify the default within 30 days as of the date of publication of the notice.

“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.”

Emaar Properties and other private developers also started issuing similar notices to get their customers to pay and take possession of the properties.

Purchasers have the right challenge the notice. A DLD mediation committee helps to resolve the matter, but if parties fail to reach any settlement, the purchaser can move court.

How a notice of cancellation is served?

- Investor receives a notice of DLD 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.

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