Saturday, November 07, 2009

Dubai Government forms Committee to deal with bounced property cheques

The Dubai Government has established a new judicial committee to deal with bounced cheque cases in the property sector.

H.H. Shaikh Mohammad Bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai issued a decree establishing a judicial committee to this effect.

The Committee will settle dispute cases pertaining to bounced cheques irrespective of whether issued by a buyer to a developer or from tenants and beneficiaries of long-term units as per the provisions of Law No.7 of 2006 pertaining to property registration in Dubai.

The judgments from the Committee will be decisive and cannot be challenged and will be implemented through execution department of Dubai Courts.

The decree also prevents the Public Prosecution and Courts from doing any investigation on bounced property cheques or issuing any sort of ruling in this regard, unless the case is looked into by the Committee. The bodies must start referring such cases to the Committee.

According to experts, such a move will help the real estate sector of the emirate in moving forward.

The CEO of Real Estate Regulatory Agency (RERA), Marwan Bin Galita, said that creating a judicial committee to settle bounced cheque disputes in property deals will prove useful to property market. Several real estate issues could be solved by bridging gap between buyers and sellers by offering them logical companies that satisfy both.

The Committee will include a Chairman, who will be chosen by appeal court judges in Dubai Courts, apart from two other members, the Dubai Primary Court judge and a representative from Dubai Land Department.

The Committee has the right to cancel a bounced cheque issued to a developer if it has been proven so, and obliging the issuer of the cheque to write another one in its place to replace the disputed cheque.

Dubai is following an international standard of solving disputes involving bounced cheques in property business and this helps in maintaining transparency, and to regain market confidence.

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