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Off-plan regulation welcomed in Dubai (?)

Discussion in 'Dubai property' started by monsi, Aug 29, 2008.

  1. monsi

    monsi New Member

    I was wondering if this law is now in force.

    If so, what do you think it will mean to property prices for people who may wish to resell before their property is complete.

    I can't include the link to the article so have included the article below: -

    If you are interested the article was published on the PropertyWire website - I am sure you can Google it.

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    Off-plan regulation welcomed in Dubai

    New regulation to stop speculation in Dubai

    The registration of all off-plan property sales in Dubai is the latest new regulation for the Emirate's real estate industry.

    The new law makes registration compulsory with the Land Department and also stops developers from charging transfer fees on such sales. But they will be allowed to accept administrative charges that are approved.

    Any sale or other disposition that transfers or restricts property titles will be void if not registered in the interim real estate register, the new law stipulates.

    Any developer who makes a sale or other disposition before the law comes into effect must register it within 60 days.

    This comes on the back of a new mortgage law that stipulates that mortgage contracts must be registered with the Land Department, specifying the size of the loan, the repayment period and the value of the property to which the loan is linked.

    All these moves have been welcomed by developers, lenders and real estate agents. It is hoped they will put an end to mass speculation in the off-plan market and help control escalating property prices.

    Buyers are also protected by regulations. The Real Estate Development Trust Accounts law, for example, requires all developers to open trust accounts in which the amounts received from off-plan units buyers are deposited, and not used until the project is finalised.

    'We believe that speculative buying may harm the real estate market by pushing prices up to unrealistic highs. This has the ability to lead to a "real estate recession", therefore laws that regulate the property trading process are in the interest of all the parties involved in this sector,' said Marzooq Al Rashdan, vice-chairman and managing director of Abyaar, a leading boutique developer.
     
  2. Fran

    Fran New Member

    According to analysts at the National Bank of Abu Dhabi investing in property in Dubai and Abu Dhabi nowadays is not as profitable as it was few years back.

    The new regulations recently implemented by the Dubai’s Real Estate Regulatory Agency(RERA) in order to prevent speculative activities in the market, are aiming to secure healthier and more stable growth.

    Law No.13 of 2008 aims to regulate off-plan sales, and mandates registration with the land department.

    Another recently introduced mortgage law states that all mortgage contracts should be registered with the land department, on specifying the size of loan, the repayment period, and the value of property to which the loan is linked.

    A new law (28 August,2008) bans property development companies from implementing their projects or selling their properties on the drawing board before actually owning the land on which the projects are to be built.

    In the same time major developers such as Aldar and Emaar stated that they will insist payment of a minimum of 20 to 30 percent of the property value prior to transferring to a second buyer under a resale transaction and impose new rules on resales...........

    ....finally Emaar to set up special desk at Dubai Land Department : Dubai Chronicle

    Personal opinion : look forward to Ajman, RAK and Fujairah real estate markets.
     
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