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Law 13 gives government guaranteed land sale

Discussion in 'Dubai property' started by Datum1m, Dec 2, 2008.

  1. Datum1m

    Datum1m New Member

    I have just heard the real reason, why the government changed the interpretation of law 13. We have all felt that the Developers would get the benefit of the land due to them been able to kept 30% of our money, which is still the case. However the bigger picture is the government get our money from the Developers for the sale of the land to the Developers. So basically if the Sub Developer as not paid the Master Developer (who is the Government anyway) for the land in full, they will take any money they need out of the Escrow account to make sure the Dubai government are 100% guaranteed the revenue from the sale of the land. This will take place, before any Investors money is paid back. The country is massively in debt and needs our money, so they are not going to let the Sub Developers give the land back to them, which would in turn allow more money to come back to us, they are going to make sure the Sub Developers pay them for the land. So how can we expect them to change the Law, when the Law as been changed to fill their pockets with our money.

    Regards

    Nigel
     
    Last edited: Dec 2, 2008
  2. therealdubai

    therealdubai New Member

    So even if we are investors in projects that will start after 9 months will won't have the chance to get any of our hard earned money back? What a pity. We invested here cause we saw that this country is more secure and transparent than many other places and look at the out come.
     
  3. TommyC

    TommyC New Member

    Makes sense, sad though that they desperatly have to sell their land simply because of the situation they've put themselves in, rather just swallow the pride and find an agreement with Abu Dhabi!?
     
  4. Datum1m

    Datum1m New Member

    What adds further strength to this being the case is clause 3 within the Land Departments Administrative Circular dated 10th November 2008, where they give the Developer the right to take the purchaser to court to “claim for the specific performance the contract”, but according to clause 2 of the same document this can only be 30% of the value of the sales contract. So this would give the Developer just enough money to pay for the land, before he goes bankrupt leaving nothing in the pot to pay us.
     
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