Mohammed bin Rashid issues a decree to the Special Judicial Committee for unfinished and canceled real estate projects in the emirate

Amending the provisions of the law organizing the initial real estate registry in Dubai

• The decree authorized the Real Estate Regulatory Agency to withdraw unfinished real estate projects for re-examination.

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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the State, in his capacity as Ruler of Dubai, issued Decree No. (33) of 2020 regarding the Special Judicial Committee for Incomplete and Canceled Real Estate Projects in the Emirate of Dubai, formed by Decree No. (21) of the year His Highness also issued Law No. (19) of 2020 amending some provisions of Law No. (13) of 2008 regarding the organization of the initial real estate registry in the Emirate of Dubai, by replacing the text of Article (11) of the aforementioned law.

Decree No. (33) of 2020 stipulated that the name of the “Special Judicial Committee for Incomplete and Canceled Real Estate Projects in the Emirate of Dubai” shall be replaced by the name of “The Special Judicial Committee for Liquidating Canceled Real Estate Projects in the Emirate of Dubai and Settlement of Rights Related to It”, wherever mentioned in any local legislation Applicable in the Emirate of Dubai.

According to the decree, the chairman and members of the Judicial Committee are named, the mechanism for holding its meetings and issuing its decisions and rulings is determined by a decision of the President of the Judicial Council in the Emirate of Dubai.

The decree also defined the jurisdictions of the Judicial Committee, including: looking into and deciding on cases, requests and appeals that were considered by the Special Judicial Committee, which were not decided by a final decision or ruling, as well as considering and deciding on cases, requests and orders whose cause or cause is an incomplete real estate project, as well as those Those whose location or cause is canceled real estate projects or their liquidation.

Real estate projects

The Judicial Committee is also responsible for examining incomplete real estate projects that are referred to it by the Real Estate Regulatory Agency, and issuing the necessary decisions regarding assigning the task of re-completing the unfinished real estate project to another real estate developer, in addition to considering and settling the grievance submitted by the real estate developer against the Real Estate Regulatory Agency, In the event that the real estate project is canceled by the corporation, in accordance with the provisions of Law No. (13) of 2008 and its implementing regulations.

The committee is also concerned with determining the rights and duties of both the real estate developer from which the incomplete real estate project was transferred, and the real estate developer who will undertake the re-completion of the project.

The committee is also in charge of liquidating real estate projects whose cancellation is a final decision issued by the Real Estate Regulatory Agency, and settling the rights related to these real estate projects after deducting the liquidation expenses.

The jurisdiction of the Judicial Committee also includes determining the rights of investors and buyers related to the incomplete real estate project, and deciding on all executive procedures, grievances and problems that are due or caused by incomplete real estate projects or canceled real estate projects.

terms of reference

The decree also specified the powers granted to the Judicial Committee, including: consideration and adjudication of the relevant regular and urgent requests, whether by one or more members of the Judicial Committee, who are assigned to do so by a decision of its Chairman, as well as assigning any member of the Judicial Committee to manage and prepare the case file, and present Reconciliation and conciliation between the parties to the dispute, forming sub-committees, defining their functions and powers, appointing auditors at the expense of the real estate developer, issuing orders to the real estate project’s escrow account trustee or real estate developer in any matter related to liquidating the canceled project, including returning the amounts deposited in the escrow account Or paid to the real estate developer to their owners.

Real estate regulation

The decree included defining the duties and powers of the Real Estate Regulatory Agency, in order to enable the Judicial Committee to carry out the tasks entrusted to it, and it included submitting a detailed report on the incomplete real estate project, stating the data and information related to the incomplete real estate project, the status to which it was assigned, and the proposed solutions to deal with the project. Incomplete, including identifying the real estate developer who will undertake the re-completion of the project, and the extent of his ability to complete it, in addition to the measures taken by the Real Estate Regulatory Agency regarding the incomplete project, and any data or other information requested by the Judicial Committee related to the project.

The decree authorized the Real Estate Regulatory Agency, and before the Judicial Committee, according to the provisions of this decree, to complete the liquidation of canceled real estate projects, the right to request the Judicial Committee to withdraw these real estate projects for re-examination and to indicate the possibility of their completion or settlement of disputes related to them.

Judicial authorities

According to the decree, all courts and judicial authorities in the Emirate of Dubai, including the courts of the Dubai International Financial Center, are prohibited from considering any request, allegation or appeal submitted to them after the implementation of this decree, which falls within the jurisdiction of the Special Judicial Committee for Incomplete and Canceled Real Estate Projects in the Emirate Dubai, and it must stop looking into the requests, cases and appeals that were submitted to it before the implementation of this decree, and refer them to the Judicial Committee for consideration and determination.

Whereas, the decree obligated the enforcement departments of all courts and judicial authorities in the Emirate of Dubai to refer the implementation files that fall within the jurisdiction of the Judicial Committee to it, for consideration and issuance of the necessary decisions in their regard.

The decree stipulates that “the judgments, orders and decisions issued by the Judicial Committee are final and not subject to appeal, by any of the regular methods of appeal, and they are executed through the execution court in Dubai courts.”

Substitution Article (11)

The new text, which was included in Law No. (19) of 2020 for Article No. (11) of Law No. (13) of 2008, included the rules and procedures to be followed in the event that the buyer breaches his obligations to implement the off-plan sale contract concluded between him and the real estate developer.

The new text of the aforementioned article of Law No. (13) of 2008 also included that in the event that the real estate developer does not start working on the real estate project for any reason beyond his control and without negligence or negligence thereof, or in the event of canceling the real estate project by a justified and final decision of the institution, The real estate developer must refund all sums received from buyers.

The procedures and rules stipulated in this article do not apply to the land sale contract where no off-plan sale has taken place, and this sale remains subject to the provisions stipulated in the contract concluded between its parties, and the rules and procedures stipulated in this article apply to all off-plan sales contracts, whether Which were concluded before or after the enforcement of this law.

According to the new text of the aforementioned article, all procedures, decisions, and actions that took place before the implementation of this law, including the termination of off-plan sales contracts, that took place from the date of the implementation of Law No. (13) of the year are considered valid, enforceable and not subject to appeal by any means of appeal. 2008, provided that it was carried out in accordance with the rules and procedures stipulated in the legislation in force at the time of its adoption, with the exception of annulment decisions that were canceled by a final judgment of the competent courts before the implementation of this law.

Any text in any other legislation is repealed to the extent that it contradicts the provisions of Law No. (19) of 2020, and this law will be published in the Official Gazette and enforced from the date of its publication.

• The decree defined the duties and powers of the Real Estate Regulatory Agency, to enable the Judicial Committee to carry out its duties.

• The jurisdiction of the Judicial Committee includes determining the rights of investors and buyers related to the unfinished real estate project.

Administrative support

The President of the Judicial Council in the Emirate of Dubai issues a decision specifying the body responsible for providing administrative and technical support to the Judicial Committee, as well as the decisions necessary to implement the provisions of this decree.

The decree stipulates that “requests, orders, lawsuits and appeals that fall within the jurisdiction of the Judicial Committee, according to the provisions of this decree, are exempt from the legal fees prescribed by law.”

Projects Liquidation Committee

This decree replaces Decree No. (21) of 2013 regarding the formation of a special judicial committee to liquidate canceled real estate projects in the Emirate of Dubai and settle the rights related to them, and any text in any other legislation is repealed to the extent that it conflicts with the provisions of this decree, which is published in the Official Gazette , Effective from the date of publication.

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