DUBAI LAND DEPARTMENT SEIZES LAND, REAL ESTATE OF SCHON PROPERTIES
Dubai Land Department (DLD) has issued a decision to seize the land, real estate and escrow funds registered to developer Schon Properties to safeguard the rights of investors.
The decision was made to allow the Public Prosecutor’s Office and the Dubai Courts time to complete legal procedures against the real estate group, Dubai Media Office said.
“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,” a DLD statement read.
“The department explained that the move is part of its efforts to effectively contribute to sustaining a well-regulated and transparent investment environment that provides necessary protection for all parties and safeguard their rights.”
Furthermore, DLD called on investors to deposit funds into an escrow account under the emirate’s real estate laws, which see funds transferred to the developer in parallel to the completion rate of the project. Schon launched the Dhs7bn ($1.9bn) Dubai Lagoon project in Dubai Investments Park (DIP) in 2005 but work halted before the property market collapsed in 2008.
In February 2017, the company said it was transferring half of the project to another developer before launching the Dhs3.2bn ($870m) iSuites in DIP in June that year under a joint venture.