Law Statutes

Law No. 19 of 2017
Amending Law No. 13 of 2008
Regulating the Interim Property Register in the Emirate of Dubai

Substituted Article
Article (1)

Article 11 of Law No. 13 of 2008 shall be replaced by the following text:

Article 11:

1. In the event that a Buyer breaches his obligations as set out by the Sale and Purchase Agreement (“SPA”) signed between the Buyer and the real estate developer, the following rules and procedures apply:
   1. The developer shall notify the Department of the Buyer’s breach of his contractual obligations in accordance with the documents prepared and/or required by the Department. The documents shall include the data of the developer and the data of the purchaser, the description of the real estate unit that was the subject of the contract and a clear description of the contractual obligations that the Buyer vacated, and provide any other document required by the Department.
   2. Upon receipt of the developer’s documents and notification and after verifying the Buyer's breach of his contractual obligations, the Department shall:
      1. Notify and request the Buyer to fulfill his contractual obligations to the developer, within thirty (30) days from the date of the notice. This notice must be in writing and dated. The Buyer is notified by the Department either in his physical presence or through his registered mail, or through email, or through any other means the Department sees suitable.
      2. The developer and the Buyer shall attempt to reach a settlement. If reached, the settlement must be evidenced by attaching an annex to the contract, which must be signed by both the developer and Buyer.
   3. If the period referred to in paragraph (2)(a) of this Article has expired without the Buyer having fulfilled his contractual obligations or reaching a settlement between him and developer, the Department shall issue an official document in favor of the developer stating that:
      1. The developer shall commit to the procedures stipulated in paragraph (a) of this article.
      2. Determine the percentage of completion of the unit by the developer, in accordance with the standards and rules adopted by the developer in this regard.
   4. The developer may, after receiving the official document referred to in paragraph (3)(a) of this article and according to the percentage of completion, take the following measures against the Buyer without resorting to the Courts or Arbitration:
      1. If the real estate developer completes more than 80% of construction of the real estate unit, the developer may do one of the following:
         1. Maintain the contract signed with the Buyer, maintain all the amounts paid to him by the Buyer, and demand the Buyer to pay the remainder of the Purchase Price per the contract.
         2. Request the Department to sell the real estate unit by public auction to gain the remainder of the amounts owed/due to him. The Buyer is to bear/cover the costs and expenses of this sale.
         3. The developer may terminate the contract at its sole discretion, and deduct no more than (40%) of the value of the Purchase Price of the unit provided in the contract. The rest shall be refunded to the Buyer within one year from the date of termination of the contract by the developer or within sixty (60) days from the resale of the unit to another Purchaser, whichever comes first.
      2. If the developer completes between )60%( and )80%( of the unit, he shall terminate the contract at his sole discretion and deduct not more than )40%( of the value of the unit provided for in the contract. The rest shall be refunded to the Buyer within one year from the date of the dissolution of the contract, or within sixty (60) days of the resale of the unit to another Buyer, whichever comes first.
      3. In the case that the developer proceeds with the construction project, through receiving the construction site and starting the construction works in accordance with the design adopted by the competent authorities: If the percentage of completion is below (60%), the developer may deduct no more than (25%) of the Purchase Price provided in the contract, and the excess shall be paid the Buyer within one year from the date of dissolution of the contract or within sixty (60) days from the resale of the unit to another Buyer, whichever comes earlier.
      4. If the real estate developer has not begun with the construction works of the project for any reason beyond his will and capacity, and without negligence, the developer may terminate the contract at his sole discretion, and deduct no more than (30%) of the value of the amounts paid to him by the Buyer, the rest shall be return to the Buyer within 60 days from the date of termination of contract.
2. In the case that the developer cancels the construction project as a result of the real estate company’s decision, the developer must refund all amounts received from the Buyers in accordance with the procedures and provisions stipulated in Law No. 8 of 2007.
3. The procedures and rules provided for in this Article shall not apply to contracts for the sale of land which were not present on the map, such sale shall remain subject to the provisions stipulated in the contract concluded between the parties.
4. The rules and procedures provided for in this Article shall apply to all sale contracts, whether they have been concluded before or after the issuing of this law.
5. The procedures and rules provided for in this Article shall be deemed public order, and non-compliance shall be deemed void.
6. The procedures and rules provided for in this Article shall not constrain the Buyer from resorting to the judiciary or arbitration in the event of abuse by the developer in the use of the powers vested in him under this Article.

Cancellations
Article (2)

Any provision in any other legislation shall be cancelled if it contradicts the provisions of this law.

Publishing
Article (3)

The law shall be in force from the date of its promulgation and shall be published in the Official Gazette.