Assets of Schon Properties in Dubai seized

Dubai Land Department (DLD) has directed to seize the assets belonging to property developer Schon Properties based
03 Aug, 2018

Dubai Land Department (DLD) has directed to seize the assets belonging to property developer Schon Properties based in United Arab Emirates (UAE).

The real estate authority announced the decision on Twitter on Thursday. “Dubai Land Department issues a decision to seize the properties and land plots registered to Schon Properties and its funds deposited in Escrow account until Dubai Public Prosecution and Dubai Courts complete legal procedures to secure the rights of all investors and other parties,” the authority tweeted.

“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, quoted Gulf Business.

Schon Properties has been involved in a number of multi-billion dollar projects in UAE. In 2017, Schon launched the Dhs3.2bn ($870m) iSuites in Dubai Investments Park under a joint venture with construction company Al Hamad Group.

The land authority also called on investors to deposit funds into an escrow account and transfer payments to developers as per percentage of completion of the projects. “Buyers are not advised to make payments to developers outside Escrow accounts,” the organisation warned.

As per Investopedia, “Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction. The funds or assets are held by the escrow agent until it receives the appropriate instructions or until predetermined contractual obligations have been fulfilled.”

Copyright Business Recorder, 2018

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