(Source: Business 24/7)
The Dubai Land Department will release an amended Article 11 of Law No13 that regulates the Interim Real Estate Register in the next two weeks, introducing new provisions for cancellation of contracts, a top government official said. “We will release an amendment to Article 11 in the coming two weeks. It is something good for the market as it is more comprehensive and detailed,” said Dubai Land Department’s Director-General Sultan Butti bin Mejren.
In November last year, the department issued an internal administrative circular whereby it gave the interpretation of the meaning and practical application of Article 11. According to the department circular, in case of a termination of an off-plan contract, the developer may retain 30 per cent of the contract value with the rule (30 to 70 per cent of the amounts paid) and shall be applicable to the amounts exceeding 30 per cent.
Read Parag Deulgaonkar’s full article “New rules for off-plan contracts” in Business 24/7 (April 5, 2009).
Further articles of interest:
“A law unto themselves“, Kipp Report (April 5, 2009)
“New provisions for off-plan properties’ contracts to be introduced shortly in Dubai” GoWealthy.com (April 5, 2009)