The Dubai Land Department has issued an amended law listing a sliding scale of refunds for investors who default on their payments on unfinished properties.
The law, known as Dubai Law Number 9 of 2009, sets refunds depending on the level of progress a project has reached. It shows preference for property developments that are nearly finished, a sign that the Government wants to help developers complete projects.
And the law is retroactive, meaning any other agreements spelt out in contracts and purchase documents are no longer valid, lawyers say. The law stipulates that in cases where developers have completed at least 80 per cent of construction, a purchaser who defaults on payments is liable to lose all the money paid in until that point.