Dubai: The Dubai Land Department (DLD) has ordered a seizure of the assets of a major property developer based in UAE.
A statement posted by Dubai Media Office said the DLD has issued a decision to seize the properties and land registered under Schon Properties, including the funds deposited in the company’s escrow account.
The move is intended to secure the rights of all investors and parties concerned, while the Dubai Public Prosecution and Dubai Courts undertake legal procedures against the company.
“The step is aimed at protecting the rights of investors in light of Schon Properties’ actions of exploiting investors by refraining from depositing their money in escrow (guarantee) account,” the DLD said in a statement.
Schon Properties has multi-million square foot development projects worth Dh7 billion in its portfolio. It has launched affordable housing projects in Dubai, targeting mid-market investors.
The DLD is also calling on all investors to put their money in escrow accounts and transfer payments to developers as per the percentage of completion in the projects.
It said this is the only way “investors can preserve their money and ensure their rights are protected.”
“Buyers are not advised to make payments to developers outside escrow accounts.”
An escrow is used in transactions involving the purchase of a property. It is managed by a third party, which can be a bank, that takes care of all the money, funds and other assets related to a real estate deal while both the investor and seller finalize the transaction.
#Dubai @Land_Department issues a decision to seize the properties&land plots registered to Schon Properties &its funds deposited in Escrow account until Dubai Public Prosecution&Dubai Courts complete legal procedures to secure the rights of all investors & other parties.— Dubai Media Office (@DXBMediaOffice) August 2, 2018