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contract solely, retain upto 40 per cent of the sale contract’s value and return the remaining amount to the buyer within a year of the date of contract cancellation or within 60 days of the date of re-selling the property, whichever is earlier. If the percentage of completion is between 60 per cent and 80 per cent, the developer may void the sale contract solely, retain not more than 40 per cent of the sale contract’s value and return the remaining amount to the purchaser within a year of the date of contract cancellation or within 60 days of
the date of re-selling the property, whichever is earlier. If the percentage of completion is less than 60 per cent, the developer may void the sale contract solely, retain upto 25 per cent of the sale contract’s value and return the remaining amount to the buyer within one year of the date of contract cancellation or within 60 days of the date of re-selling the property, whichever is earlier. If the developer did not initiate the work in the property for reasons beyond his control and without negligence, the developer may void the sale contract solely, deduct
not more than 30 per cent of the paid money and return the remaining amount to the purchaser within 60 days of the date of re-selling the property, whichever is earlier. According to the new law, if the project is cancelled by a resolution from Real Estate Regulatory Authority, the developer must refund all payments made by the buyer, pursuant to the law concerning Escrow Accounts for Real Estate Development in Dubai. “The procedures prescribed in the new law are not applicable to land sale contracts. Such a sale re-
mains subject to provisions stated in the sale contract. This law annuls any other legislation that contradicts or challenges its articles and is valid from the date of its publication in the official gazette,” the report says. Sultan Butti bin Mejren, Director General of Dubai Land Department, said, “The new law reflects our continuous efforts to complete the legal system that regulates our real estate sector. “This allows all parties to take the necessary steps while also understanding their true dimensions, and outlines the pillars of the sector so that we can maintain our leading position, especially when it comes to the protection of rights. “By issuing this law, His Highness has reassured all concerned parties in the real estate sector that Dubai will remain an oasis of security and stability. We are required to recognise these initiatives and work to implement them, thus contributing to enhancing transparency and consolidating the foundations of the sustainable renaissance in our emirate, which accepts no substitute for first place,” he concluded. g Gulf Property
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