Dubai Property <http://www.alineah.com/> Dubai Property <http://www.alineah.com> Daily News Letter : www.alineah.com <http://www.alineah.com/images/page-img/head_top.gif> Wednesday, April 22, 2009 Dubai law pins down property defaulters Alineah.com - Dubai law pins down property defaulters <http://www.alineah.com/news/322/detail.htm>
The Dubai Land Department is planning to issue an amended property law that will determine refunds for investors who default on their payments based on construction progress of the project, according to lawyers briefed on the matter. The move will bring clarity to the property market in Dubai, where a credit squeeze and the effects of the global financial crisis have led to defaults by home buyers. But some investors have criticised the amendment for being too heavily in favour of developers. Lawyers say the amendment to article 11 of Dubai Law 13 of 2008 will stipulate that in cases where a buyer defaults and the developer has constructed at least 80 per cent of the project, the buyer loses all money paid to that point. The home can then be auctioned to compensate the developer for the rest of the cost. If a developer has completed at least 60 per cent of the project and the buyer defaults, the developer is entitled to keep 40 per cent of the purchase price. But if a developer has completed less than 60 per cent of the project, it can only keep 25 per cent of the purchase price. If the developer has not been able to start construction "without any negligence or omission on the developer's part", the developer may keep 30 per cent of the money paid by the buyer to that point. Developers would have to refund any money due to the purchaser within one year, or within 60 days of the resale of the home. A legal briefing from the law firm Clyde & Co said the amendment "provides much anticipated clarification regarding the procedures required to be followed by developers in respect of defaulting purchasers, as well as the rights of developers to retain purchaser monies upon cancellation". The original law specified that if a buyer defaulted on payments to the developer, the buyer would be able to recover 70 per cent of any money they had turned over to that point. But when the property market started to face difficulties last autumn, the Real Estate Regulatory Agency (RERA) issued an interpretation of the law that said the developer could retain 30 per cent of the total price of the property. (more news detail <http://www.alineah.com/news/322/detail.htm> ) Property of Week <http://www.alineah.com/apartment/19131/detail.htm> Apartment for Rent 75,000 AED MAG 214 Jumeirah Lake Towers <http://www.alineah.com/apartment/19130/detail.htm> Apartment for Rent 55,000 AED Saba Tower 3 Jumeirah Lake Towers <http://www.alineah.com/villa/3961/detail.htm> Villa for Sale 2,181,200 AED T196 Al Hamra Village <http://www.alineah.com/villa/3960/detail.htm> Villa for Sale 16,900,000 AED Signature Palm Island Jumeirah <http://www.alineah.com/office/2208/detail.htm> Office for Rent 200,000 AED Fortune Tower Jumeirah Lake Towers <http://www.alineah.com/apartment/18697/detail.htm> Apartment for Sale 650,138 AED The Bridge Dubai Sports City See more Dubai Properties and Real Estate News Visit us: www.alineah.com <http://www.alineah.com/images/page-img/head_bottom.gif> Abu Dhabi <http://www.alineah.com/en/about-uae/abu-dhabi/index.htm> | Dubai <http://www.alineah.com/en/about-uae/dubai/index.htm> | Sharjah <http://www.alineah.com/en/about-uae/sharjah/index.htm> | Ajman <http://www.alineah.com/en/about-uae/ajman/index.htm> | Umm Al Quwain <http://www.alineah.com/en/about-uae/umm-al-quawain/index.htm> | Ras Al Khaimah <http://www.alineah.com/en/about-uae/ras-al-khaimah/index.htm> | Fujairah <http://www.alineah.com/en/about-uae/fujairah/index.htm> Dubai Real estate Brokers <http://www.alineah.com/broker.asp> | Dubai Developers <http://www.alineah.com/developers.asp> | Dubai Real Estate Law <http://www.alineah.com/law.asp> | Dubai Agents <http://www.alineah.com/broker_display.asp> |Freehold Dubai <http://www.alineah.com/real_terms.asp> | Legal <http://www.alineah.com/legal.asp> UAE Home Loans <http://www.alineah.com/loans.asp> | Dubai Properties <http://www.alineah.com/property_search.asp> | Links <http://www.dubairealestatelinks.com/> | Site Map <http://www.alineah.com/sitemap.asp> | Home Insurance UAE Dubai <http://www.alineah.com/insurances.asp> | Blog <http://www.alineah.com/blog> | Contact Us | Privacy & Policy <http://www.alineah.com/privacy.asp> © 2006-2007 Alineah.com , All rights reserved. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Dubai & International Trading Society" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/DubaiTrading?hl=en?hl=en in association with www.buildingarabia.com -~----------~----~----~----~------~----~------~--~---
