The Dubai Land Department will release an amended Article 11 of Law No 13 in the next two weeks, introducing new provisions for the cancellation of contracts, a top government official has said in a report carried by the newspaper Emirates Business.
As reported in Arabian Business last month the much anticipated amendment to the Real Estate Regulatory Agency's (Rera) Article 11, Law 13, has caused some confusion in the industry.
The article states that if a buyer defaults on a sales contract, after a 30-day notice period the developer may cancel the contract and return the buyer's money minus 30%.
But some investors remain confused over whether the law applies to 30% of money paid to the developer by the date in question or 30% of the total due amount for the property
Meanwhile, Dubai Land Department's Director-General, Sultan Butti bin Mejren told Emirates Business: ''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.''
Mejren declined to give any further details, telling the newspaper: "The revised article will set new grades for properties and developers. It will be more than the 30-70 rule, which is now applicable."
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