In Dubai's real estate sector, the management of canceled, suspended, or stalled projects is overseen by the Special Tribunal for Liquidation of Cancelled Real Estate Projects and Settlement of Related Rights. Established under Decree No. (33) of 2020, this tribunal has replaced the previous committee formed in 2013, streamlining the process of addressing unfinished and canceled real estate developments.
Key Responsibilities of the Special Tribunal:
Dispute Resolution: The tribunal is authorized to review and settle all disputes, grievances, and complaints arising from unfinished, canceled, or liquidated real estate projects in Dubai. This includes unresolved issues from the previous committee's tenure.
Formation of Subcommittees: To effectively manage its duties, the tribunal can establish subcommittees and appoint auditors. These subcommittees assist in various aspects of the liquidation and settlement processes.
Escrow Account Oversight: The tribunal holds the authority to issue directives to trustees managing the escrow accounts of real estate projects. This ensures that funds are appropriately allocated during the liquidation process.
Determining Rights and Obligations: A critical function of the tribunal is to ascertain the rights and obligations of all parties involved, including investors and purchasers. This determination is vital for the equitable settlement of claims.
Exclusive Jurisdiction: The tribunal possesses exclusive jurisdiction over matters related to unfinished or canceled real estate projects. Consequently, Dubai courts, including the DIFC Courts, are prohibited from accepting disputes, appeals, or complaints that fall under the tribunal's purview.
Collaboration with RERA: The Real Estate Regulatory Agency (RERA) supports the tribunal by preparing detailed reports on unfinished and canceled projects. RERA also provides recommendations to facilitate the tribunal's decision-making process.
By centralizing these responsibilities, the Special Tribunal aims to expedite the liquidation of stalled projects and ensure that the rights of investors and other stakeholders are upheld, thereby fostering confidence in Dubai's real estate market.
