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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.