New legislations issued regarding unfinished & cancelled projects in Dubai
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the State, issued New legislations which is Decree No. (33) for the year 2020 on the special committee for unfinished and cancelled real estate projects in Dubai, formed under Decree No. (21) for the year 2013.
The Committee New legislations
The Special Tribunal for Liquidation of Cancelled Real Property Projects in the emirate of Dubai is the new name of The unfinished and cancelled real estate projects committee name in Dubai, under Decree No. (33) for the year 2020.
According to the new legislation, the Dubai Judicial Council Chairman will define the frameworks for its meetings and decision-making and judicial processes, appoint the members and chairman of the new Special Tribunal. The Decree allows the court to settle all disputes, grievances, and complaints for which the previous committee did not issue final decisions.
Under Law No. (13) for the year 2008, The court is tasked with the settlement of disputes related to unfinished real estate projects that have been cancelled and thereafter referred to the previous Committee by the Real Estate Regulatory RERA Agency.
The Tribunal may determine the rights and obligations of each developer If the real estate project is transferred from one developer to another. If the Real Estate Regulatory Agency has cancelled a real estate project, the Tribunal liquidates it and ensuring a settlement of all rights related to the project.
The Chairman of the Tribunal may also form appoint auditors, subcommittees, and issue orders to the trustees of the project’s ESCROW account in all matters related to the liquidation of cancelled real estate projects.
The Decree prevents all courts including DIFC Courts in the Emirate of Dubai, to accept any disputes, appeals, or complaints related to unfinished or cancelled real estate projects, or those that fall under the jurisdiction of the Tribunal by following its activation.
Dubai Council issued New legislations.
The Dubai Judicial Council Chairman will issue a resolution naming the entity responsible for providing technical support, and administrative support to the Tribunal.
This Decree substitutes Decree No. (21) for the year 2013 on the formation of the special committee for unfinished and cancelled real estate projects in Dubai, and it annuls any other legislation that contradicts or challenges its articles. His Highness also issued Law No. (19) for the year 2020 amending Article (11) of Law No. (13) for the year 2008 on the Interim Real Estate Register in Dubai.
According to the amendment, the developer must refund the entire amount paid by purchasers, if the developer did not start construction works in the real estate project because of reasons beyond his control, or if the project was cancelled because of a decision issued by the Real Estate Regulatory Agency (RERA).
The New legislations will be published in the Official Gazette and is effective from its publication. Any other legislation that contradicts or challenges the articles and provisions of Law No (19) for the year 2020 is considered null.