By Elsa Baxter
Land Department official says it may repossess off-plan homes if owners in default.
A senior Dubai Land Department official has said off-plan properties may be seized if owners are in default on payments.
Mohammed Sultan Thani, the department’s assistant director general, told the National that investors who fail to make outstanding payments within two weeks could lose their property.
The rule applies to properties that are more than 80 percent complete, he said.
“The idea is to see what we can do before the property is cancelled,” Thani told the paper. ““Very few people will opt for not completing payments if the building is almost ready.”
According to the report, 40 percent of any money paid will be confiscated and the unit will be sold at auction with the profits going to the developer.
This is completly a new thought and needs to be blessed to become a Law. Its really strange, people have been investing there money in units that never had any Law that would protect there Money invested or the rights of having a property. Neither there is any constitutional property Law that will protect them from any Legal, civil or even criminal consequence or may even lead to imprisonment in case of non payments of such a property that is still on plans or is never going to be developed. Please save the rights of the investors, so it may bring back some confidence in the them.
Having quietly supported the developers through the downturn on their failure to deliver, this statement confirms that investors have no say or recourse as developers will be continously backed no matter what they do.
it is the investors mistake in the first place,,,,they allowed the developers to rule their money.the developers sold their projects on the map and earned their money and they built with the money of the investors and yet they couldnt deliver.wake up guys and stop dreaming you already lost the value of your money since the real estate market in dubai was inflated and will lose its value more with time.seize your losses and sell today if you can find a buyer.
and what about the developers who have eaten people's money and are still in dubai, what are you doing about that Mr Thani