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Dubai sets up new committee to handle all cancelled, unfinished real estate projects

Updated: Feb 5, 2022

Dubai: Dubai is setting up a special committee to oversee all unfinished or cancelled real estate projects. The Tribunal will be tasked with arriving at a settlement of disputes related to these projects that were cancelled pursuant to Law No. (13) of 2008 and thereafter referred to the previous committee by the Real Estate Regulatory Agency (RERA).

All decisions and judgements issued by the Tribunal are final and incontestable, and the Execution Court at Dubai Courts will execute the Tribunal’s judgments.

The Decree was issued by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai.

The Chairman of Dubai Judicial Council will appoint the chairman and members of the new Special Tribunal, define the framework for its meetings and decision-making and judicial processes. The Decree authorises the Tribunal to review and settle all disputes, grievances and complaints for which the previous committee did not issue final decisions or judgements.

The Tribunal will also review and settle disputes and complaints arising from unfinished, cancelled or liquidated real estate projects.

Pay off

According to another amendment, if a developer did not initiate construction works at the project due to reasons beyond his control, or if the project was cancelled due to a decision issued by RERA, the developer must refund the entire amount paid by purchasers.

Sole mandate

The latest Decree prohibits all courts in Dubai - including DIFC Courts - to accept any disputes, appeals or complaints related to unfinished or cancelled real estate projects, or those that fall under the jurisdiction of the Tribunal.

RERA must provide all support to the Tribunal in performing its duties, and will prepare detailed reports about unfinished projects and provide recommendations to help settle disputes or refer the project to another developer.

REPLACES EARLIER REGIME The latest Dubai Decree substitutes Decree No. (21) of 2013 on the formation of the special committee for unfinished and cancelled real estate projects in the emirate. It also annuls any other legislation that contradicts or challenges its articles.

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