Questions & Answers
How to recover money when the project is canceled by DLD?
We purchased 2 flats in Feb 2008 from a developer in Jumeirah village circle in Jouri 1. We paid AED 456,000 and AED 467,000 till Dec 2009 but no construction was done. We were shifted to Jouri 5 and paid 227,000 and 225,000 till 2012.
Still no progress so we were shifted to Cadi 5 and paid 1,68,000 and 237,00 till August 2016. No work since then. Amount paid for both is 854,000 and 933,000; total 1,787,000 AED.
Recently, we checked the DLD website and found that Cadi 5 was on the list of canceled projects and our names were missing in the 2 units. So we require help in 2 issues.
First, to have our names included as owners of the flats. We have all agreements, account statements, and receipts.
Second, to help us recover the money. We are in India and visiting Dubai from 26 Oct to 2 Nov 2019.
Dear Sir/Madam,
Thank you for reaching out to me on this.
I understand your situation and trust that this is resolvable.
The laws in the UAE have provided provisions protecting consumers such as yourself when the developer abandons the project which is subsequently canceled by DLD.
One needs to apply to the court with the necessary property-related documents to join the list of owners and when the project is sold to a third party or completed, you will be eligible to claim compensation by way of refund or the premises, whichever follows by the court. Such cases are then referred to the liquidation committee.
The developer, by law, has to deposit a certain percentage of the amount received in the escrow account so that it remains untouched. You will be able to claim from this escrow too.
I have handled such cases in the past and trust that I can assist you in this as well. I will need to review all your documents like SPA, payment receipts, and booking forms.
You may contact me directly via phone or email for further assistance and clarification.
Regards,
Hari Wadhwana
