Burj Khalifa repossessions may begin early

Burj Khalifa repossessions may begin early

Emaar Properties is set to begin repossessing apartments in the world’s tallest tower before keys are even handed over.

May 16, 2010 1:00 by Samuel Potter

The UAE’s largest developer, Emaar Properties, has begun contacting owners of units in the Burj Khalifa, warning them that they will lose their apartments and 40 percent of their property’s value if they fail to pay overdue installments within two weeks, reports the National. But, as yet, no apartments have been handed over to buyers.

The report says a number of other developers have been sending out cancellation notices over the past two weeks; they include Omniyat Properties, Al Fajer Properties and Al Mazaya Real Estate.

Mohammed Sultan Thani, the assistant director general of the Dubai Land Department, told the paper that hundreds of termination letters had been sent out in recent weeks, although no properties had yet been put up for auction (the next step after repossession).
“There is no easy solution … It is also painful for the developer because even if they repossess the property, it’s very hard for them to sell it right now,” he said.

Dubai’s property laws say buyers who fail to make payments on property that is under construction or has been completed are liable to have their contracts canceled and some or all of their money confiscated by the developer. On the other hand, if a developer fails to uphold its obligations, the Real Estate Regulatory Agency (RERA) can cancel the project and order refunds for buyers, says the National.

Tags: Burj Khalifa, Dubai land department, Emaar Properties, property law, Repossessions, RERA, UAE

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4 Comments

AP on May 17, 2010 9:45 am

There should be a reasonable amount of cancellation fee in case the buyers cannot continue paying the instalments. It is wrong to repossess as well as collect a hefty 40% amount as cancellation penalty. Goes against Sharia law I reckon.
Miss Anne Thropic on May 17, 2010 10:51 am

World’s tallest building, opened with much fanfare, renamed to honour the Abu Dhabi royal family who bailed Dubai out, now with empty apartments… Yes, another great Dubai achievement…
jazzy jo on May 17, 2010 12:24 pm

Strange!!!

How come the law also does not
protect investors when projects are
delayed and the investor has invested
a sum of money with the developer? Why aren’t the developers
fined for making false promises and do not stick too their deadlines?
Shouldn’t the law also protect the investor who invested in a specific
project and has lost the opportunity to
Invest elsewhere? They should not only be paid their investment but
but in addition to this also be compensated. Both sides should be protected
if justice is to be achieved.
rich on May 26, 2010 11:51 pm

People came to invest in dubai because they thought it
Was a safe ,just and first world country. But to day most
Of the people have become beggers.