New Law for unfinished and cancelled projects issued in Dubai | Push Digits Chartered Accountants

New Law for unfinished and cancelled projects issued in Dubai

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New Law for unfinished and cancelled projects issued in Dubai

A new commandment in Dubai has been released that deals with cancelled and unfinished plans.

The Dubai Legal Council’s chairman will assign the new members and chairman of the Tribunal that will then settle and review the grievances, complaints and disputes that the prior team did not decide judgments for. It will further settle and go through complaints and disputes of unfinished or cancelled projects.

The Court is in charge of settlements of developments that were cancelled due to the Law No. (13) Of 2008 and therefore are stated to the last Committee by RERA.

If a real estate development is handed over to another developer, then the Tribunal has the authority to regulate the obligations and rights of every developer.

For example, RERA annuls a project, then the Tribunal has to responsibility to liquidize it and to make sure that all settlements are made.

They can further outline the civil liberties of purchasers and investors of unfinished projects and can settle all grievances, complaints and disputes of both cancelled and unfinished real estate development plans.

The Court is authorized to analyze urgent and normal matter and issue amicable settlements and judgments. The chairman can assign associates of the Tribunal to issue and review judgments on issues.

The chairman also has the right to form subcommittees, issue orders and appoint auditors of the development’s accounts that are related to liquidation of canceled projects.

The decree also discusses details of the obligations and responsibilities of the RERA that are related to the support given to the Tribunal in order to perform their duties. RERA prepares reports about the unfinished schemes and gives references to the new Tribunal to aid in settling disputes.

Along with this, the Decree forbids every court in Dubai, which includes the DIFC Courts, from accepting any appeals, disputes or complaints that are related to cancelled or unfinished real estate development plans. This includes those that are under the authority of the new Tribunal.

According to the issued Law Number 19 of 2020 (revising Law number 13 issued in 2008), if a developer does not start construction in the scheme due to circumstances beyond his power, or the development is cancelled by RERA, then the developer has to refund the sum paid by the purchasers.

Every decision delivered by the new Tribunal is incontestable and final and the Execution Court at Dubai Courts has to execute its judgments.

Every other legislature that challenges the provisions and articles of Law Number 19 of 2020 has been nullified.

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