Thursday, June 23, 2016

Off-plan property investors can get full refund - Dubai Court ruling

A property purchaser whose sale and purchase agreement was terminated for non-payment and the property is re-sold by the developer without a court order, can file a claim to recover the amounts paid, according to a judgment by the Dubai Court of Cassation.
In a report titled ‘Terminating a contract for an off-plan’, law firm Hadef and Partners said the Dubai Court of Cassation found that going through the Article 11 Cancellation Process was not sufficient to give the developer the right to repossess and to sell the unit, and that a developer still needs to file a civil claim and to obtain a court order for the termination of the existing contract.
“The court took the view that the Article 11 Cancellation Process are simply a set of administrative guidelines/recommendations and they do not override the general requirement that a court should determine the matter and decide whether or not the contract is to be terminated due to the purchaser’s default,” Walid Azzam and Karim Mahmoud wrote in the report.
This general requirement is found in Article 267 of the Federal Law 5 of 1985 (‘the Civil Code’), which provides that a contract can only be terminated “by mutual consent [of the parties], court order, or under a provision of the law”, they said.
The Court of Cassation was reported to have said that if a developer re-sold a repossessed unit; the purchaser (even if he was in default) may be able to recover the payment(s) he made.
“Given the recent ruling, the developer’s actions in repossessing the unit and reselling it constitutes a unilateral termination of the contract, so making the developer liable to repay any amounts received from the defaulting purchaser,” the lawyers said.
In the court’s view, Article 11 Cancellation Process is just an administrative step which is separate from obtaining the court’s approval to the termination of the contract.
The law firm further mentioned that in case of a defaulting purchaser, even if the developer is able to de-register the unit from the interim register prior to re-selling that particular unit, it would be strongly recommended to file a claim against the defaulting purchaser to implement the compensation provisions of Article 11 and to secure a court order for the termination of the contract.
The Dubai Land Department (DLD) cancellation process arises out of Law No. 13 of 2008 regulating the Interim Property Register in Dubai (Law No. 13), which was later clarified and amended by Law No. 9 of 2009 (Law No. 9). The revision of Law No 13 by Law No. 9 was intended to set up a clear termination mechanism and to provide guidelines in case purchasers stopped making their contractual payments.
It also established a specific compensation mechanism that correlates to the construction level of the project at the time of the purchasers’ default. Law No. 9 also made the specific article, Article 11, apply retrospectively.
Article 11 of Law No. 9 provides that:
1.  In the event the purchaser shall be in default of any of the terms and conditions of the contract for the sale of a real estate unit entered into with the developer, the developer must notify the DLD of such default. Thereupon, the department shall give the purchaser, by hand, registered post or e-mail, a 30-day notice to fulfill his contractual obligations.
2. If at the end of the notice period stipulated in the preceding paragraph the purchaser has not fulfilled his contractual obligations, the following provisions shall apply:
a. In case the developer has completed at least 80 per cent of the project, the developer may keep the full amounts paid and request the purchaser to settle the remaining amount of the contract price. If   this was not possible, the developer may request that the property be auctioned in order to collect the remaining amounts due to it.
b. In case the developer has completed at least 60 per cent of the project, the developer may revoke the contract and deduct up to 40 per cent of the purchase price of the real estate unit stipulated in the contract.
c. In case of projects where construction commenced, but did not reach 60 per cent, the developer may revoke the contract and deduct up to 25 per cent of the purchase price of the real estate unit stipulated in the contract;
d. In case of projects whereat construction has not yet commenced for reasons beyond the developer’s control without any negligence or omission on its part, the developer may revoke the contract and deduct up to 30 per cent of the total amounts paid by the purchaser.
Based on this cancellation process, when a purchaser was sent a notice and did not rectify his position, the DLD traditionally de-registered the property from the interim register and re-registered it in the name of the developer.
The DLD cancellation process appears to have permitted developers to address issues related to losses from defaulting purchasers quickly and without having to go through a lengthy court process.
Likewise, the developer also had recourse under Article 15 of Executive Council Resolution No. 6 of 2010 to apply to the courts in the event the monies paid by the defaulting purchaser did not meet the thresholds outlined in Article 11, and to claim for the balance.
“Generally, these laws appear to provide a balance between the needs of developers (who are harmed by both defaults and having to wait for a court judgment to recoup losses) with the interests of purchasers (who stand to have a part of their deposits returned to them).
“However, due to a recent Dubai Court of Cassation judgment, any developer considering terminating a contract through the DLD for lack of payment now faces a great deal of uncertainty,” the lawyers said.

Saturday, May 07, 2016

U.A.E Visa Rules,Dubai visa Rules,U.A.E Labor Law: U.A.E Workers Welfare Report 2015 Published

U.A.E Visa Rules,Dubai visa Rules,U.A.E Labor Law: U.A.E Workers Welfare Report 2015 Published:





  The Ministry of Human Resources and
Emiratisation has published the first annual report entitled 'Workers Welfare
Report 2015,' highlighting the labour rights in the UAE.

The 2015 report focuses on
measures to ensure that all workers that come to the UAE "are recruited
and employed equitably, safe in their place of work, and free to advance
professionally and personally."

The publication of this report
is part of a drive to increase transparency about labour issues, improve data
reporting and ensure that discussion about the transnational labour mobility
and economic development is frank and fair.

In a forward to the 2015
Report, Saqr Ghobash, Minister of Human Resources and Emiratisation, remarked
that "The UAE’s workforce is our greatest asset: the driver for growth
that enables economic diversification and secures the future for tomorrow’s
generation."
Ensure Workforce Protected
"The Ministry of Human
Resources and Emiratisation is committed to ensuring our workforce is protected
and its dynamism is harnessed for the good of all. Therefore the ministry has
launched a series of initiatives and resolutions to promote workers' welfare in
the country, most notably, Standardising labour contracts in order to promote
clarity and transparency for workers and employers," he added.

He further elaborated that the
ministry launched new laws that "Enable workers to move freely between
employers, as well as evaluating and reviewing every aspect of working in the
Emirates from recruitment to housing and making significant reforms designed to
ensure all workers are treated respectfully at all times, and able to report
instances of maltreatment easily."
Legal Professionals to help Labour Disputes
The minister said that MOHRE
has appointed 63 legal professionals to help resolve labour disputes, and
trained 100 members of staff to facilitate the process of dispute resolution.
The ministry has also implemented a new, dynamic smart inspection system to
enable the inspectors focus their efforts on higher risk business
establishments.

Tuesday, June 23, 2015

UAE prepared for property price correction of up to 20 per cent this year, says ratings agency S&P


Dubai property prices could fall 10 to 20 per cent over the remainder of this year and early 2016, according to the ratings agency Standard & Poor’s (S&P).

But developers are better placed to cope than in the 2008-09 crisis, according to the agency.

The decline in values is taking place “after three years of sharp price appreciation” and is due to an increase in supply, S&P said.

It cited figures from the property data provider Reidin which anticipated 20,170 units to be delivered in Dubai this year – compared to the three-year annual average of 11,600.

Although it expects domestic economic growth to “slow markedly” in 2015-16 as a result of lower oil prices, it adds that the economy is more diverse than in 2009, when property sales were a key source of revenue.

The population is growing at a rate of 5 to 6 per cent in Dubai and 7 to 8 per cent in Abu Dhabi.

Tourism numbers should also hold up, and regulations such as the federal mortgage cap introduced in 2013 and mandatory requirements for developers to use escrow accounts for off-plan sales have reduced the risk of defaults.

S&P argues that the drop in demand is because of fewer non-residents buying properties.

“In early 2015, for instance, non-resident demand from Russia and other member countries of the Gulf Cooperation Council was particularly subdued.”

Major players in the market, such as Aldar Properties, DIFC Investments, Damac Properties and Emaar Properties, have managed to diversify revenue streams, as well as improve their own balance sheets and cash generation over the past two years.

The ratio of their debt to Ebitda dropped to 1.9x at the end of 2014, compared to 3.3x at the end of 2008.

The S&P credit analyst Franck Delage said that the major developers had attracted more money from rentals, which means that their income streams are more predictable.

“It gives good visibility on revenues. It gives a cushion of resources and helps to cover interest charges on a more predictable basis,” he said.

He added that they were more flexible in terms of revenue mix, with many capable of adapting their product range to produce more budget properties if required

“Since there has been a few years of strong price growth, demand could be more price-sensitive.”

A sensitivity analysis conducted by S&P for the report argued that even if the market performed much worse than predicted, with average selling prices dropping 30 per cent and current interest rates doubling, it would have little impact on the credit rating of major developers.

Sunday, January 25, 2015

Cancelled Real Estate Projects in Dubai Court newly issued List

The Dubai Courts has listed 166 real estate projects in its newly-issued project cancellation list,
The Cancelled Real Estate Projects Committee is currently hearing 17 projects all of which were launched by Reliance Estate Development.
Two projects by Khyool Investment – Abjar Tower and Faras 2 – have been liquidated and money has been distributed among investors.
The courts, however, clarify that there is no specific time period for the judgment to be passed in projects that are under consideration with all investors being informed of the final judgment using different ways of communication listed in advance on its website.
The Real Estate Regulatory Agency (Rera), the regulatory arm of Dubai Land Department, has never officially published the list of cancelled projects.
Here is the official list (# developers name and followed by the projects) of cancelled projects mentioned by the Dubai Courts under various categories.

Cancelled projects that have been liquidated and distributed among investors

# Khyool Investment LLC
  • Abjar Tower
  • Faras 2
Cancelled projects currently under hearing by the committee
# Reliance Estate Development
  • Reliance 1 to 16
Cancelled projects, which have been heard and registered by the committee, and are in process of distributing amounts among investors
# High Rise Properties LLC
  • Dorna Tower
  • Orchid Residences
  • The Heights-Golden
  • Waves Business Tower
  • The Heights-Silver
  • Rotating Residence
  • High Rise Boulevard 1
  • High Rise Boulevard 2

# Hampstead & Mayfair Development Limited
Hampstead Residences

# Zenith Real Estate Development (LLC)
Zenith Tower A3

# Orbit Holdings Limited
Orbrit Holding

# IR Investments Holding Company Limited
Tonino Lamborghini-Elettra Residence

# M E Development L.L.C
Windsor Residence

# Cliff Dwellings Enterprises Ltd
Global Golf Residence

# Galadari Investment Office Limited
G-Office Tower

# Bux Holdings Limited
Beti Ul Funoon

# Parshwa Holdings Limited
Sapphire

# Escan Real Estate
Escan Tower
Eden 1
Eden 2

# Al Zahra Properties
Sunset Gardens A
Sunset Gardens B
Sunrise 2

# Alternative Capital Invest Gmbh (Branch)
Wings of Arabia

# Makaseb Properties
Rufi Tower (Quattro)
Rufi Lake View
Archery Tower
Quattro West

# Merwess Abdulaziz
Azizi Feirouz I
Azizi Feirouz Ii
Azizi Feirouz Iii
Azizi Fountanne Tower

# Remah Holding Limited
Tower 88

# Dujan Properties Ltd
Eden Blue

Cancelled projects which have been transferred to the committee and will be heard soon

# Sanali Holdings Fze
Sanali Business Tower
Sanali Business Heights
Sanali Capital Avenue

# Azizi Investments (L.L.C)
Al Masa Ii

# Integral Properties Development
Integral 05

# Qureshi Faisal Abdul Aziz
Dunes Dahlia

# Dunes Group Developments Limited
Dunes Lilac

# Royal Holdings Ltd
Global Elahi Residence

# Al Tafany Properties Limited
Al Tafany Tower

# Crown Two Holding Limited
Crown Royal

# Noorzak Investments Limited
Jehaan 2
Jehaan 3
Jehaan 4
Jehaan 6
Jehaan 11
Jehaan 9

# Diamond Arch Limited
Diamond Arch 1
Diamond Arch 2

# Jab Developments Inc
Pebble Stone

# Oasis JV Limited
Oasis Heights

# Sheth Estate (International ) Limited
Iris Mist

# Al Mas Worlds Investment Limited
Soraya Tower II

# Kleindienst Properties
The K Suites

# Salya Homes Limited
Mario Valentino Boulevard

# Star Surveying & Evaluating Services
Sahara One

# Burj Alalam Holdings Limited
Burj Alalam

# Rufi Down Town Residency Limited
Rufi Royal Residency

# 32 Group Properties Limited
Paris Residence

# Umesh Kumar Vinodrai Chug
Insignia Residence

# Desert Dream Investments & Development Properties

Dream Harbour Dream Square

# Baiti Properties Development LLC
Al Qurashi

# Flamingo Investments Limited
Sanali Flamingo

# Erc Property Developers Limited
The Heights

# Westar Properties Ltd
Westar Galaxy

# Dheeraj & East Coast (LLC)
The H.Q

# Cenita Global Ltd
Casa Verona

# Sheffield Real Estate LLC
Sheffield Classique

# UAE Waterfront Group Limited
Royal Bay

# Profile Zero Five Five Limited
Zero Five Five

# Syndicate Sealine Limited
Mystica

# Bangash Developments Limited
Royal Deluxe Villas
Royal Luxury Villas
Royale Garden Residence

# Al Faraa Properties
Burj Al Faraa
Image Residences

# ACW Holding Ltd
Platinum 2

# Sternon Developers Limited
Sternon Tower 1

# Jasmine Garden Limited
Jasmine Garden

# Chapal World LLC.
Chapal Emirates Point

# Satnam Singh
R & R Tower I

# Infinity Emirates Investments LLC
Soccer Tower

# UK-CIG Developments (JVS) Limited
Metropolis Lofts

# New World Investments Limited
World Wide Tower

# Star Developers Limited
Nathalie Tower

# D10 Awf Investment Limited
Aquarius Gate Tower

# Jab Mosaistone Developments Inc
Mosia Stone

# Mahdi Amrollahi (Partner) Antar Marzooq (Owner)

Pisa Tower Residence

# Sameer Mahmoud Al Ali
Zenith Tower

# Es Investments Limited
Kpm 2 & 3

# Smart Home Properties
Elegant Tower

# Premier Group (Fzc)
Berlin City Center

# Aryene Property Developers Limited
Aryene Wonders

# Evergreen Signature Investment Limited

Le Stelle1, 2, 3, 4, 5

# Diamond Properties Limited
Blue Moon Tower

# Rufi Luxury Heights Limited
Rufi Luxury Heights

# Optimo Arabia Limited
Arabia Tower

# Elan Investment Limited
Sanali Quantum

# Gulf Line International Ltd
North Gate Business Tower

# Beliza Resources Limited
Prodigy4

# German Holding Group (L.L.C)
Mira Palace

# Oakgrove Global Limited
Prodigy2

# Avetona Global Limited
Prodigy5

# Mirjana Resources Ltd
Prodigy3

# Neel Devcons Limited
Phoenix Wings

# Ashai Tower JVS Limited
Ashai Tower 5

# Rufi Grand Apartments Limited
Rufi Grand Apartments

# Luxor Investments Limited
The Signet

# Pearl Properties
The Palesides

# Kensington Global Investments Inc
Kensington Krystal

# Yra Enterprises Limited
Schon Suites and Schon Residence

# City-D Investments Limited
Pangkor Laut Luxury Residence & Spa Village

# Malson Limited
Maison Residence Collection

# V Resorts Ltd
V-Greece on The World

# Alternative Capital Invest Gmbh (Branch)

Palazza Arabia
Venetian Arabia

# Sama Emirates Estate Development (L.L.C)

The Sama World Tower

# Al Duaa Holdings (Fzc)
Alduaa Marina Tower

# Spain Select Limited
The Aquitainia

# Hampstead & Mayfair Development Limited

Hampstead & Mayfair Boutique Residences

# Bela Vida Limited
Dolce Vita

# Alternative Capital Invest Gmbh (Branch)

Sami Q Tower

# Grun Developers Limited
PKS Residences

# Kleindienst Properties
The K Hotel

# Anis Holdings Limited
Chase Residency

# Crown Three Holding Limited
Taiba

# Sungwon (Fze)
Santeview

# Hydra Properties (L.L.C)
Hydra Towers

# Ahmed Abdul Rahim Al Attar Properties LLC

Toronto

Vancouver

# Posh Holdings Limited
Posh Lifestyles

# Fortune Serene Limited
Fortune Serene

# Dja414 Investment Limited
Sienna Square

# AAA Facilities Management Services (L.L.C)

Eclipse Tower

# Escan Real Estate
Escan Tower

# Alternative Capital Invest Gmbh
Victory Bay Tower

# Burj Al Dua'a Limited
The Plaza

# Alternative Capital Invest Gmbh (Branch)

Pershing Luxury Beach Residence Tower

# Zero Five Zero Limited
Zero Five Zero

# Sebco Limited
Sebco Residence

# Planetex Holdings Co Limited
Crown Avenue

# PND Investments Ltd
10 Tower

# Heman Red and General Trading Limited
I-Dubai

According to Dubai Courts, the committee for the liquidation of cancelled real estate projects and settlement of rights related thereof specializes in liquidation of real estate projects by which a final decision of cancellation has been issued by Rera whereas the judgments, orders and decisions issued by the committee shall be final, peremptory and not appeal able by all means of a regular appeal and shall be executed by the implement department of the court.