A new amended Article 11 of Law No13 will be released by the Dubai Land Department. The new rule will regulate the Interim Real Estate Register in Dubai within the next two weeks. It will introduce new provisions for cancellation of contracts.
Last year in November the department issued an internal administrative circular. In the memo it gave the interpretation of the meaning and practical application of Article 11. The circular states that in case of a termination of an off-plan contract, the developer may retain 30 per cent of the contract value with the rule (30 to 70 per cent of the amounts paid) and shall be applicable to the amounts exceeding 30 per cent.