Developer In Dubai To Refund AED 7.5 Million To Property Investor

The Dubai real estate courts are starting to mean business if the most recent ruling to be announced is anything to go by. The latest problem to make the news involves Law No 13, which states that all off plan property that is purchased needs to be registered at the Land Registry Department within 60 days of an agreement being made. If a developer fails to register the property within the 60 day time period, the deal is thus considered void, as Mizin Properties has now found to its cost. At a time when developers are failing to attract freehold property buyers’ with falling property prices and difficulty obtaining credit, the last thing a developer need is to be losing property deals it has already closed on. However this now looks to be the situation facing Minzin properties, the developer behind freehold property project Remraam. This isn’t the 1st time Remraam has hit the news, as its previous CEO is now in court on charges of bribery and fraud, so it could no doubt do without the latest these latest problems.

The situation is a fairly simple one and unfolded as such. An as unnamed investor made a large purchases’ of apartment units at Mizin’s Remraam freehold development in April 2008. Now, as specified by property Law Number 13, Mizin should have then registered the land within the 60 day time period. However in January this year, the investor found that the apartments had in fact not been registered in his name, and therefore according to Law No 13, the deal was void. And now the court has made the ruling for the complaint registered on the 21st of January, and it isn’t good news for Minzin Properties! Unfortunately for the company, the investor in question didn’t just purchase a small about of residential freehold property, but had bought around AED 7.5 millions worth! And all of this now had to be refunded to the investor due to the failure to register the land! However it gets worse, as the court also ruled that another 9% of that sum should also be paid to the investor to cover legal costs and damages, leaving Minzin with a payment of over AED 8 million to make! Quite a costly mistake for something as small as registering the land in Dubai!

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