Mohammed bin Rashid issues a decree regarding the special judicial committee for unfinished and canceled real estate projects in Dubai

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 Judicial Committee for Unfinished and Canceled Real Estate Projects in the Emirate of Dubai, which was formed pursuant to Decree No. (21) of 2013 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 Unfinished 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 Related Rights” wherever they are mentioned in any applicable local legislation. In the emirate of Dubai.

According to the decree, the head and members of the Judicial Committee are named, and the mechanism for holding its meetings and issuing its decisions and rulings is determined by a decision from the President of the Judicial Council in the Emirate of Dubai. Deciding on them by a decision or a final judgment, as well as looking into and deciding on the lawsuits, requests and orders that are the subject or cause of an incomplete real estate project, as well as those whose cause or cause is the canceled or liquidated real estate projects.

The Judicial Committee is also concerned with 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 establishment 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 whom the incomplete real estate project was transferred, and the real estate developer who will undertake the re-completion of the project, and the committee also liquidates real estate projects whose cancellation is issued a final decision by the Real Estate Regulatory Agency, and settles the rights related to those real estate projects after deducting Liquidation expenses.

The jurisdiction of the Judicial Committee also includes determining the rights of investors and buyers related to the unfinished real estate project, and deciding on all executive procedures, grievances and problems that are due or caused by unfinished 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 reconciliation between the parties to the dispute, forming sub-committees, specifying their tasks and powers, appointing account auditors at the expense of the real estate developer, and issuing orders to the real estate developer or developer escrow account 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 establishment

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, indicating in it data and information related to the incomplete real estate project, the status to which it was transferred, and the proposed solutions to deal with the incomplete project. The completed project, including the determination of the real estate developer who will undertake the re-completion of the project, and his ability to complete it, in addition to the actions taken by the Real Estate Regulatory Agency regarding the unfinished 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, in accordance with 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.

Courts and judicial authorities

According to the decree, all courts and judicial bodies in the Emirate of Dubai, including the courts of the Dubai International Financial Center, shall be prohibited from considering any request, allegation or appeal submitted to them after the implementation of this decree that falls within the jurisdiction of the Special Judicial Committee for unfinished and canceled real estate projects in the Emirate Dubai, and it must stop looking into the requests, lawsuits and appeals that were submitted to it before the implementation of this decree, and refer them to the Judicial Committee to look into and decide on them, while the decree obligated the implementation departments of all courts and judicial authorities in the Emirate of Dubai to refer the implementation files that fall within the jurisdiction of the committee Judicial authorities to it, to review it and issue the necessary decisions regarding it.

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 that they are executed through the Dubai Courts of Enforcement Court.

The head of the Judicial Council in the Emirate of Dubai shall issue a decision specifying the body mandated to provide 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 under the provisions of this decree shall be exempted from the legal fees established by law.

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 contradicts the provisions of this decree, which is published in the Official Gazette, It takes effect from the date of publication.

Replace Article (11) of Law No. (13) of 2008

The new text contained 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 sales 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 outside of his control and without negligence or negligence, or in the event that the real estate project is canceled by a causal and final decision of the establishment, the developer must Al-Aqary will refund all amounts received from the buyers.

The procedures and rules stipulated in this article do not apply to the land sale contract where the off-plan sale has not 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 It was concluded before or after the implementation 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 implementation of Law No. (13) of 2008, are considered valid, enforceable and not subject to appeal by any means of appeal. Provided that they were completed in accordance with the rules and procedures stipulated in the legislation in force at the time of their 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 shall be repealed to the extent that it contradicts the provisions of Law No. 19 of 2020, and this law shall be published in the Official Gazette and shall be enforced from the date of its publication.

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