Union Properties moves to repossess units from defaulted investors
Defaulted investors at MotorCity project are being contacted.
June 1, 2010 10:14 by Rasha Reslan
Union Properties, UP, will join a number of other Dubai developers in a move to repossess properties from defaulted investors in its MotorCity project, Emirates Business said Tuesday.
“We had sent out notices to investors at February-end, mostly for the MotorCity project, asking them to honor their commitments and make the final payment for handover of their units. A default would lead to termination of their contract as per the applicable laws,” Ayman Okasha, Chief Property Officer, UP told the paper.
Defaulted investors can lose their down payments in the event of repossession, often as much as 40-50 percent of the value of the property, the report said.
The Dubai Land Department began deregistering properties of defaulted investors who have missed payments on off-plan projects. An Executive Council resolution passed in April, allows developers to repossesses properties, retaining forty percent of their value, local media reported.