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May 11 2010

Emaar targets defaults

Emaar Properties has started proceedings to seize properties from buyers who have defaulted on payments for flats in Dubai Marina.

The country's biggest developer is sending letters to owners saying 40 per cent of the amount they have paid so far will be kept and the properties auctioned if they fail to pay the due instalments within two weeks.

Developers who have completed 80 per cent or more of their projects are taking advantage of a new rule that allows them to repossess the properties of customers who have missed payments.

The letters are being sent via the Dubai Land Department , which has the power to enforce termination notices. Emaar 's action follows similar notices sent by dozens of other developers including Al Fajer Properties and Al Mazaya Real Estate.

If payments are not made, the properties will be auctioned by the Land Department , with the money from the sales going to the developer unless the sales generate a surplus, which is passed on to the original buyers.

Mohammed Sultan Thani, the director general of the Dubai Land Department , said the department's role was to act as a "mediator" in such cases.

By Angela Giuffrida

© The National 2010

© Copyright Zawya. All Rights Reserved.


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