In the light of the development witnessed by the Emirate of Dubai, and with the increasing activity of purchasing and selling, I take this opportunity to quickly comment on one of the problems that has been practiced and discussed frequently. This problem cannot be ignored and that is of course the cancellation of unit Registries from the initial Land Record which used to be registered by the name of investor (purchaser) in the initial record
As understood by all, the law of Emirate of Dubai has compelled the developer to register the real estate units in the initial record in the name of its owner for insuring their rights in case the sold property wasn’t ready for hand over. It obliged the developer to assure its handover on the due time and agreed upon time and the investor shall pay the installments as per the mutual agreed schedule between them.
These situations are when the investor (purchaser) delays the payment of the due installments within the scheduled dates.
In these instances the legislative authority of Emirate of Dubai has responded by addressing this issue, in the light of which, the Executive Board’s decision No. 6, 2010 is issued, this approves the adoption of the executive orders as per the law No. 13, 2008 concerning the initial property registry in the Emirate of Dubai which stipulates in its articles especially article 15, the necessary procedures to be followed by the developer with Land registration authority before attaining the order for canceling the name of the investor from the initial record.
The decision was made in response of the real estate development which is witnessed by the Emirate of Dubai in order to meet the legal requirements of the work in this regard. The concerned authorities in the Emirate of Dubai have issued the real estate laws which must be applied to all disputes and legal real estate cases as established by Dubai Courts of cassation.
Such laws fixed, organised and described the obligation add the rights of both the developer and the investor. Such law fixed also the procedures to be followed and the penalties arising in case of any breach from the side of either party. Also the competent authorities should apply the same as well as the entities to issue decisions based on such law.
In other words, lands and owners department should notify the investor to comply with the payment and then issue its decision to cancel the registration of the unit in his name due to his failure to pay, its decision should be applicable.
In accordance to the provision of Article 15 of law No. 13 of 2008 (resolution of the executive council No. 6 of 2010 to approve the executive regulation thereof).
The said article explains the steps to be followed in case of failure by the investor starting from the notification till the penalties imposed on such failure
Regarding article 17 of the same law, it explained that for the purpose of applying article 15 if such decision the following 1-2 should be observed:
In other words the above said law fixed (1) the steps and 2) the penalties and (3) application techniques and 4) the competent entities to issues the decisions
Thus, the resolutions issued by the Land and Property Department to cancel the restriction of a real estate unit due to the investor’s non compliance to pay are resolutions issued by an authorised and competent administrative body, therefore, these resolutions shall not be neglected nor derogated by conferring a title of (recommendation or proposal) on them, while some provisions had applied this trend and cancelled some of the resolutions issued by the Land and Property Department which had already been issued to cancel a unit restriction in a name of an investor.
The importance of this problem requires to rethink again of the legal power that must be conferred on these decisions in order to be final decisions that grant the developer the right of selling the unit again after receiving the cancellation decision, and compel the investor to show no leniency in abiding by installments or payments agreed upon, leading to the ongoing stability of the transactions in this regard.