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Dubai Introduces Greater Transparency and Purchaser Protection into Its Property Laws

Dubai Property Law and freehold: Overview:

Just before 1999 Non-GCC expatriates resident in Dubai were only permitted to rent or own property under UAE federal law approved 99-year leasehold interests.In 2002 - the Dubai government announced so it would permit expatriates your can purchase freehold property in selected projects - and instantly created the Dubai international property sector.

Earlier projects have been commenced by the Dubai Government owned or part owned Emaar and Nakheel Properties.Emaar started with Dubai Marina in 1999 - and later with the Emirates Living Community projects - Emirates Hills, The Meadows, The Springs, The Lakes, and The Views - which were initially offered on a leasehold basis - and subsequently on a freehold basis.

In May 2002 - Dubai's then Crown Prince General Sheikh Mohammed bin Rashid Al Maktoum - signed a decree permitting foreigner investors including local residents - to get and own freehold property in selected projects - and the Dubai property sector rapidly grew in proportions and importance immediately after this.

Nakheel concurrently launched the Palm Jumeirah - as a freehold project - and all previously developed leasehold property was automatically converted to freehold.The newest 2002 freehold policy - and the decision by the major government owned master developers - to subdivide master plots into individual sub plots on the market to other developers opened industry to new entrants such as:

Damac Properties, 
Dubai Properties, 
ETA Star Properties, 
Union Property.

Even though the freehold liberalization policy was announced in 1999 - it wasn't officially incorporated into regulations before the 14th of March 2006 - when the Dubai government issued a law authorizing foreign ownership of property in designated project areas of DubaiWith the freehold property law in effect - any property purchased with a foreigner is listed under their name for life - and this enables the property to be registered with the

Dubai Government Lands Department.

The master then has full rights over the utilization and possession of the property including the proper to offer, lease or rent it.
Registration of property including off plan units: Law no 14:

Law no 14 arrived to effect in Dubai in October 2008 - and requires all off-plan units to be registered with Dubai Lands Department - that will make the Dubai property market a better area for home purchasers and investors - and responds to past complaints from investors - especially off-plan investors.

The newest law also establishes a necessary procedure applicable to any developer seeking to terminate a purchase and purchase contract.
The newest property law requires that the sale of all off-plan properties be fully registered with the Land Department before they may be resold.
This can have an all natural slowing impact on the rate of which any property could be subject to speculation - and be flipped and resold.

The registration information must include:
the name of the purchaser and owner; 
the worthiness of the property; 
the precise location of the property; 
any relevant mortgage or payment plan details; 
the payment history and fees paid and chargeable.

Any sale that is not registered is going to be considered void - and therefore unenforceable in any court of law.

An interim registration law arrived to effect on August 31 2008 - providing that any ownership change of off-plan properties in Dubai is going to be invalid if not registered in

RERA's Interim Register.

Upon registration - all registered sales are then officially recorded in the Land Department Register.

Sale transactions executed before regulations arrived to effect aren't exempted - and should be registered within 60 days of the laws enactment.What the law states will also prevent unscrupulous developers and agents charging transfer fees - although they will still be able to charge administration fees that will be capped - and only payable upon the Land Department's registration of the sale.

So bad news for speculators - while the registration procedure will slow down the marketplace - but good news for home owners and long term property investors who could have a well-protected title under a Torrens registration system similar to that in devote Australia.

The newest mortgage law:

The newest mortgage law - which arrived to effect on October 30 2008 - states that mortgages is going to be invalid if not registered at the Dubai Land Department or the new Interim Real Estate Register - and it sets out all procedures concerning a mortgage and its legal effects on the parties to it.It also contains execution procedures for the mortgaged property - and prescribed proper conduct between the lender and the borrower.

The mortgage law is made to provide greater regulation within the Dubai property market to safeguard buyers.

Under law 14 a mortgage may only be made available from a registered financial institution - such as a bank or finance company - and the mortgage is needed to be fully insured.

Each mortgage has to be registered with the Land Department - the important points necessary for registration being:

the amount of the mortgage; 
the worth of the property being mortgaged; 
the name of anyone to whom the cash has been lent; 
and the repayment period and terms. 

Real Estate Regulatory Authority [RERA]:

Reforms of Dubai's real-estate sector's regulations started in July 2007, when a Real Estate Regulatory Authority [RERA] was established in Dubai to create policies and to produce awareness of rights and responsibilities in the property sector.

The Strata Law:

The Strata Law was issued and arrived to effect on March 31, 2008. It defines the responsibility of property owners and developers in the management of common areas in multi-owner developments, like gated communities and apartment buildings.

Dubai Property Court:

A new specialist Dubai Property Court was established in September 2008 - solely to adjudicate over property disputes.It is likely to reduce the workload of RERA - which since it's formation - has been swamped by property cases - including many for developer project delays and noncompliance with the property developer's original description.

In conclusion the new Dubai property laws introduce a regulatory system according of the Dubai mortgage lenders market that in several respects now offers superior consumer protection to Dubai property purchasers to that made available from many western jurisdictions.

Post by tuuliloiri (2019-05-20 09:43)

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