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The much-anticipated amendment to the Real Estate Regulatory Agency’s (Rera) Law 13, Article 11, which has caused much confusion in the industry, is soon to be enforced.

The amendment - Dubai Law No. 9 of 2009 - is expected to be published in the Government Gazette shortly and will have effect from the date of publication.

The existing law stated that in the event of cancellation of a sale contract due to purchaser default, the developer could retain only 30% of money paid, and must return the remaining 70% to the defaulter.

But this provoked much concern among developers hurting from the effects of the financial crisis, and the fall in demand for real estate in Dubai.

An email sent to Construction Week by a Dubai law firm sought to ease the situation.

“In light of the economic downturn with uncertainties and a drastic drop in prices in the real estate market, there were concerns for developers and purchasers in terms of their respective rights," said a spokesperson for Capital MS&L Middle East, which works closely with the law firm that has since asked not to be named.

“The amendment is significant as it alleviates much of the uncertainty in the market and clarifies the rights of developers and purchasers in the event of an agreement termination.”

The message went on to explain that if a purchaser breaches a contract, the developer may follow a procedure that involves the land department to terminate that contract.

While if a developer terminates the agreement, its rights depend on how much construction has been completed.

The law will apply to all cancellations of all off-plan sales contracts irrespective of the date on which the relevant contract was signed.

The email contained an attachment with a detailed break down of how the amendment will affect developers (see below).

The attachment concluded: “We expect further clarification and guidance regarding the implementation of the changes to be provided by the Dubai Land Department in due course.”

Last month Al Tamimi and Co partner and property department head Lisa Dale said of the amendment, “I understand that an amendment to the law is now under consideration. Hopefully we will have some clarity on this issue moving forward.”

How the amendment will affect developers

1. Before taking any cancellation action, a developer must notify the Land Department if a purchaser is in default of a contract for sale. The Land Department will then give the purchaser a notice period providing a 30 day period within which the purchaser must fulfil its obligations.

2. If at the end of the 30 day notice period the purchaser has not fulfilled its obligations, the following rules will apply.

a. Where the developer has completed construction of at least 80% of the project, the developer may retain all monies paid and request that the purchaser settles the remaining amounts. If this is not possible, the developer may request that the property may be auctioned in order to collect the outstanding monies.

b. Where the developer has completed construction of at least 60% of the project, the developer may revoke the contract and retain 40% of the purchase price stipulated in the contract.

c. Where construction has commenced but construction of less than 60% of the project has been completed , the developer may revoke the contract and retain 25% of the purchase price.

http://www.constructionweekonline.com/a ... _unveiled/

RobbyG wrote:The much-anticipated amendment to the Real Estate Regulatory Agency’s (Rera) Law 13, Article 11, which has caused much confusion in the industry, is soon to be enforced.

The amendment - Dubai Law No. 9 of 2009 - is expected to be published in the Government Gazette shortly and will have effect from the date of publication.

The existing law stated that in the event of cancellation of a sale contract due to purchaser default, the developer could retain only 30% of money paid, and must return the remaining 70% to the defaulter.

But this provoked much concern among developers hurting from the effects of the financial crisis, and the fall in demand for real estate in Dubai.

An email sent to Construction Week by a Dubai law firm sought to ease the situation.

“In light of the economic downturn with uncertainties and a drastic drop in prices in the real estate market, there were concerns for developers and purchasers in terms of their respective rights," said a spokesperson for Capital MS&L Middle East, which works closely with the law firm that has since asked not to be named.

“The amendment is significant as it alleviates much of the uncertainty in the market and clarifies the rights of developers and purchasers in the event of an agreement termination.”

The message went on to explain that if a purchaser breaches a contract, the developer may follow a procedure that involves the land department to terminate that contract.

While if a developer terminates the agreement, its rights depend on how much construction has been completed.

The law will apply to all cancellations of all off-plan sales contracts irrespective of the date on which the relevant contract was signed.

The email contained an attachment with a detailed break down of how the amendment will affect developers (see below).

The attachment concluded: “We expect further clarification and guidance regarding the implementation of the changes to be provided by the Dubai Land Department in due course.”

Last month Al Tamimi and Co partner and property department head Lisa Dale said of the amendment, “I understand that an amendment to the law is now under consideration. Hopefully we will have some clarity on this issue moving forward.”

How the amendment will affect developers

1. Before taking any cancellation action, a developer must notify the Land Department if a purchaser is in default of a contract for sale. The Land Department will then give the purchaser a notice period providing a 30 day period within which the purchaser must fulfil its obligations.

2. If at the end of the 30 day notice period the purchaser has not fulfilled its obligations, the following rules will apply.

a. Where the developer has completed construction of at least 80% of the project, the developer may retain all monies paid and request that the purchaser settles the remaining amounts. If this is not possible, the developer may request that the property may be auctioned in order to collect the outstanding monies.

b. Where the developer has completed construction of at least 60% of the project, the developer may revoke the contract and retain 40% of the purchase price stipulated in the contract.

c. Where construction has commenced but construction of less than 60% of the project has been completed , the developer may revoke the contract and retain 25% of the purchase price.

http://www.constructionweekonline.com/a ... _unveiled/

Considering you live Holland, would you be so kind as to inform all of our members what your interest is in whatever RERA does or doesn't do?

I wonder if you ever read my earlier posts about the housing and real estate investments thread.

I have a personal interest that I follow up on. Perhaps I'll be shutting my mouth soon also, when I live in the block beside you...

RobbyG wrote:I wonder if you ever read my earlier posts about the housing and real estate investments thread.

I have a personal interest that I follow up on. Perhaps I'll be shutting my mouth soon also, when I live in the block beside you...

I doubt that, but we live in hope I suppose.

Rob does have an odd infatuation with Dubai for some reason.

However, why take a jab at someone who is trying to pass on information?

dresden wrote:Rob does have an odd infatuation with Dubai for some reason.

However, why take a jab at someone who is trying to pass on information?

It was a question that is all, so many people just want to slander the country we live in whilst they have no real knowledge.

And what about the projects haven’t started even after 13 months where owners have no right for a refund. Purchase agreements of Damac and Emaar I have seen, have no refund policy fallowing the cancellation of purchase agreement, instead, developers propose a move to more developed properties.
All I have on law 13 is various AL Kaleej articles with Marwan B. Ghulaita’s –CEO of RERA- statements about the buyer’s liability over projects that is not in progression; It would be handy to have the complete article..

sage & onion wrote:

dresden wrote:Rob does have an odd infatuation with Dubai for some reason.

However, why take a jab at someone who is trying to pass on information?

It was a question that is all, so many people just want to slander the country we live in whilst they have no real knowledge.

Thats just your personal opinion.

Why not judge the substance I present instead of judging the person you obviously don't know all that well.

That might color your nose a bit natural instead of the presumptive strikes that rule the minds of people on DF.

I like it balanced and not single-sidedly positive. Makes you a better person also. Hail democracy.

sage & onion wrote:I doubt that, but we live in hope I suppose.

Maybe he's from here ...

http://www.girlzforum.nl/lekker-kletsen/

bonk wrote:

sage & onion wrote:I doubt that, but we live in hope I suppose.

Maybe he's from here ...

http://www.girlzforum.nl/lekker-kletsen/

Nog een Hollander!! Bonkerzz!!!

Jij bent lang verstopt geweest voor me. Hows life?

bonk wrote:

sage & onion wrote:I doubt that, but we live in hope I suppose.

Maybe he's from here ...

http://www.girlzforum.nl/lekker-kletsen/

I doubt it, seems to be from the land under the sea (almost)

^^^ Talking to his monkey boy. Son perhaps? ^^^

sage & onion wrote:I doubt it, seems to be from the land under the sea (almost)

It was the lekker-kletsen bit I was referring to. I think RobbyG understood. But he's still kletsing lekkerly all over the place.

It doesn't translate to English very well.

RobbyG wrote:Jij bent lang verstopt geweest voor me. Hows life?

Wo ist mein Fahrrad ?

bonk wrote:

RobbyG wrote:Jij bent lang verstopt geweest voor me. Hows life?

Wo ist mein Fahrrad?

Thats German you Monkey boy

Qu'est-ce que c'est?

bonk wrote:Qu'est-ce que c'est?

You have about 20 countries in Europe to go.

Good luck Bonk!

RobbyG wrote:You have about 20 countries in Europe to go.

Good luck Bonk!

Σε ευχαριστώ

... 19

Como? Even I can't read that

RobbyG wrote:Como? Even I can't read that

De donde eres!?

... 18

ERRR

Gå på vågeblus.

... 17

HONK

Beth sydd yn cael eu drafod ar y wefan yma?
Pob iaith ond "Iaith y Nefoedd" !!

Wie sagt mal?

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