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Important information you need to know regarding Dubai property laws 13 and 14

Discussion in 'Dubai property' started by romail, Apr 6, 2009.

  1. romail

    romail New Member

    Why are these two laws important to you? They came into effect on October 31st, 2008 and have some extremely important ramifications. We’ve outlined the most important parts of the laws for you below, however we do recommend you read through the laws in their entirety to get a feel for their depth.

    1)As of October 31st if your off-plan property is not registered on the Interim Real Estate Register you will not be able to sell it, and technically your agreement with the developer will be null and void. (Article 3, Law 13)

    2)If you purchase an off-plan property after October 31st you will have to ensure it is registered otherwise the purchase can be construed as being null and void. (Article 3, Law 13)

    3)It is the developer, not the owner, who must register an off-plan property. If you own an off-plan property and have not already done so we strongly recommend you contact your developer ASAP to make sure it has been registered. (Article 3, Law 13)

    4)If you have purchased an off-plan property, and then default on the payment plan, the developer must refund a minimum of 70% of what you have paid. This has a significant affect as most contracts currently state a default results in losing all monies you have paid. (Article 11, Law 13)

    5)Mortgages are not considered valid unless they are registered. (Article 7, Law 14)

    6)A mortgage cannot be registered until the property is on either the Interim Real Estate Register (off-plan property) or the Real Estate Register (completed property).
    If you own a completed property you must also make sure it is registered. (Article 8, Law 14)

    7)A mortgagee/creditor can take legal action against the mortgagor/debtor if the property is not kept in a good condition. (Article 19, Law 14)

    8)All mortgages on completed properties must also be registered with the Dubai Land Department. In addition all completed properties must already be registered with the Dubai Land Department so they are on the Real Estate Register. (Article 3, Law 13 and Article 7, Law 14)
  2. FireFly

    FireFly New Member


    Are you able to clarify point 1 above. If the Developer does not register the property as yet, and the agreement becomes null - can the investor request his/her money back from the Developer?

    With regards to point 4, I have read that Developers/Officials are saying this law actually means that Developers can hold onto 30% of the total value of the property (not the amount paid to date) if the investor defaults on payments. Also, is there a date attached to this ie all property purchased before xyz date will be subject to their respective contracts, and those properties purchased after xyz will be subject to this law? How can we be sure about the final word on this as it has very significant ramifications.

    Where can we get the full version of all the laws pls?

    Thanks and regards,

  3. romail

    romail New Member

    Go to rera website u will find all these information there,with regards to point 4,little confusion
    what it actually says:If at the end of the period referred to in item 1 of this Article the purchaser has not fulfilled his contractual obligations, the developer may cancel the contract and repay the purchaser his money less a deduction that does not exceed 30% of the monies paid by the purchaser,it clearly states what i explain before!Make a union & protest for law no 13 so they will ask all developers to refund their money as early as possible as written in the law.
  4. sevvastian

    sevvastian New Member

    70% only after resale?

    My developer says that he can return the monies only after it has resold the apartment to somebody else. Is this true? Is there any legal proof of it?

    If my contract was signed before law 13 came into effect, what will prevail? The law or my contract? My contract says, the developer retains 25%. The developer says that RERA will decide if it's 25 or 30%.
  5. pisandre

    pisandre New Member

    If the contract was signed before, it is the contract that prevails.
  6. romail

    romail New Member

    A big drama for investors because they only want to save developers .The law no 13 clearly says that if the client defaults the developer has to pay 30 % out of moneies paid by the investor ,example if i have paid 20 % the developer has to pay me 70 % back.My brother don't get confused by asking questions like that the law implement after signing or before signing the contract .We have to follow what is written in the law not in the contract.In law no 13 it is not written about the clause you are talking about that it will implement to those who sign before . its all drama by only saving developers.Dubai goverment doesn't even know that if they lost the investor confidence how they regain the property by only protecting developers.Very said :confused:

    Last edited: Apr 11, 2009
  7. sevvastian

    sevvastian New Member

    All right, but is there any ground for my developer saying that he will return the money only after he's resold my apartments?
  8. romail

    romail New Member

    by dialog u can have a solution contact your developer and ask him to refund your payment after it get sold.Ask him to cooperate with you and deduct only 5 % and return 15 % after it get sold.
  9. AjmanInvestor

    AjmanInvestor Banned

    Even little payment now and balance payment after the property is sold is better

    Even little payment now and balance payment after the property is sold is better
  10. donegalman

    donegalman New Member

    living in dreamland

    After it is sold? How long will that take. There is a huge glut of unsold/unlet flats already. We all know that expats are leaving. And more flats are still being built so the glut will increase. Prices are down by 30-50% and still no-one is buying and why should they as they know the glut will just get bigger & bigger.

    Properties for sale now may take 10 years to clear and even then only at 10% of peak prices (20-30% of today's price.
  11. romail

    romail New Member

    Let's pray & hope for the best for those who are still paying installments & want that there appartment would be sold on good price & also pray for those who don't have sufficient funds to continue any of their they can have deal with the developer of refunding their money whenever conditions get better.
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