Dubai Government Seize Properties

The Dubai Land Department starts to deregister properties after sending letters to investors who have failed to fullfill their payments on off-plan project, The National reported.

The cancellations were sent on behalf of developers that have completed 80% or more of a project, which can be made due to the Executive Council Resolution 6 of 2010.

The resolution has allowed developers to repossess properties and retain 40% of their value. The seized properties will then be auctioned by the Land Department and the funds returned to the developer. Any surpuss will be transferred to the original buyer.

This step has been taken because of buyers who have failed to fullfill their contracts. According to the assistant director general of the Dubai Land Dept., Mohammed Sultan Thani, most buyers accept the cancellation, adding that

“It’s mostly happening through mutual agreement … only a few people are making problems.”

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