On-the-Spot Property Registration Introduced by Dubai Land Department

A new move has been involved which will allow all property transactions to be completed in a secure and successful manner in the most dynamic Dubai real estate markets. The Land Department of Dubai has announced the introduction of on the spot property registrations. The Director General of the Land Department Sultan Bin Butti Bin Mejren has announced the initiative which signals a technologically advanced approach in order to register and protect property interests within the emirate.

During the launch ceremony of this advanced system he further said, “Today has seen the immediate activation of the technological infrastructure stage which will support the new advanced services and electronically integrate processes as diverse as registration, pre-registration, escrow accounts and a state-of-the-art e-services system.”

He added: “This will take the Department significantly closer to the stage where it will be able to offer one of the most advanced systems for registering and regulating land and property transactions. It moves land and property ownership in Dubai into a new era in which coherent strategy and planning results in joined-up access and protection of owners' interests. One of the most important aspects of this 'services-led initiative' is that it integrates registration with procedures such as licensing the brokers who sell the property and even with the trust accounts through which funding for its construction is channeled.”

This announcement was made after the completion of the first phase of the implementation of their new system after it has been tested for four weeks. A two year review and implementation programme is further followed which has already taken this technological system to an advanced level. The IT Director at the Land Department, Mr. Khalifa Al Suwaidi said, “We are moving towards a range of new online options that will transform land transactions in Dubai.”

He further added, “Today's activation means we have taken the critical step which will enable the Land Department to offer online services as standard. The motivation and rationale behind this initiative were guided by our experience of the market and the requirements of those involved in buying and selling property. The market has changed dramatically in the past five years so our starting point had to be different and our response pitched at a different level.”

On-the-Spot Property Registration Introduced by Dubai Land Department

A new move has been involved which will allow all property transactions to be completed in a secure and successful manner in the most dynamic Dubai real estate markets. The Land Department of Dubai has announced the introduction of on the spot property registrations. The Director General of the Land Department Sultan Bin Butti Bin Mejren has announced the initiative which signals a technologically advanced approach in order to register and protect property interests within the emirate.

During the launch ceremony of this advanced system he further said, “Today has seen the immediate activation of the technological infrastructure stage which will support the new advanced services and electronically integrate processes as diverse as registration, pre-registration, escrow accounts and a state-of-the-art e-services system.”

He added: “This will take the Department significantly closer to the stage where it will be able to offer one of the most advanced systems for registering and regulating land and property transactions. It moves land and property ownership in Dubai into a new era in which coherent strategy and planning results in joined-up access and protection of owners' interests. One of the most important aspects of this 'services-led initiative' is that it integrates registration with procedures such as licensing the brokers who sell the property and even with the trust accounts through which funding for its construction is channeled.”

This announcement was made after the completion of the first phase of the implementation of their new system after it has been tested for four weeks. A two year review and implementation programme is further followed which has already taken this technological system to an advanced level. The IT Director at the Land Department, Mr. Khalifa Al Suwaidi said, “We are moving towards a range of new online options that will transform land transactions in Dubai.”

He further added, “Today's activation means we have taken the critical step which will enable the Land Department to offer online services as standard. The motivation and rationale behind this initiative were guided by our experience of the market and the requirements of those involved in buying and selling property. The market has changed dramatically in the past five years so our starting point had to be different and our response pitched at a different level.” pro

New Law Considers Property Refunds in Dubai

New Dubai property law into consideration has bought a light for hope for real estate investors in Dubai, who would be refunded or would get a property replacement, incase they fall pray to the failing developers. Developers would be financially penalized if they fail to deliver their constructed project on time or to agreed specifications.

The law firm, Al Tamimi and Company, unveiled a newsletter with the proposed law and the conversation between Dubai Land Department’s senior legal advisor, Emad Eldin Farouq and the firm’s head of property practice, Lisa Dale.

According to the legal advisors, the failure of developers on handing over completed properties and buyers defaulting on payment would breed more legal disputes throughout the year.

“There are lessons to be learnt from the crisis and we are emerging with a new legal regime,” said Mr Farouq. “Loopholes in laws are being dealt with and things will become more organised in 2010.”

“2010 is still the year of fighting,” said Michael Lunjevich, the head of the property practice at Hadef and Partners. “It will be about consolidations, legal claims, liquidations and insolvencies. The market needs to clean itself out.”

The proposed law predominantly protects the interest of the buyers, where they are delivered defective property or have had late deliveries. This would lead to financial penalties to the buyer including a refund or replacement property. Also, if the developers refuse to link the construction mile stone with the payment plans, the buyer would be able to demand a cancellation of the contract.

“The investor protection law is being proposed to deal with some specific issues identified last year, where investors needed further assistance in dealing with errant developers,” Ms Dale said. “The granted land system is a tradition in the UAE, enabling nationals to have access to lands for the purpose of building their home or business premises,” Ms Dale said. “However, the system is quite limiting, as there are restrictions on transacting with such land. If you upgrade your title from granted to freehold, you can sell the property to other UAE or GCC nationals, or you can put it into a property fund or mortgage it. It becomes a much more flexible asset.”

The Dubai Land Department also plans to begin regulating property valuers and conveyancers by requiring them to obtain licences, and to create a law to oversee property brokers who handle trust accounts for property deals, Ms Dale said.

Discovery Garden Property has got a New Rate Fixed by Nakheel Real Estate Firm

Discovery Gardens is a well structured community comprising of six themed communities developed by Nakheel. The community offers an area of 26 million square foot freehold residential community. Its construction has been inspired by garden living developed in the heart of New Dubai. Nakheel is one of the leading Dubai real estate developers and has recently planned a revised budget for Discovery Garden community. Before re-setting the property rate, the revised price has been agreed formally with RERA, Dubai property market regulator. This price change will mean an approximate reduction of Dhs5 per square foot in service changes for homeowners.

Managing Director of Nakheel Asset Management and Design (NAMAD) Abdulrahman Kalantar said: “When we first set the service charges for Discovery Gardens, they were based on our best estimates for this new Nakheel community. Following a lengthy review, we have been able to take advantage of recent reductions in the cost of goods and services, which has in turn reduced our overall service charge budgets.”

Nakheel made some necessary preparations with following the introduction of the new strata law in April, 2008. Once the regulations are being finalized by the Dubai Land Department (DLD) these preparations are to register the Owner’s Association with RERA, these necessary preparations are to register the Owner’s Association with RERA. Moreover, these new lowered service charge rates will be backdated to 1^st January, 2009. If there will be any rebates for householders they are being credited against next year’s service charges effective from October 1^st, 2009.

Dubai Land Deals Reach Dh2.15b

Last week in Dubai the total worth of the land transactions reached an amount of Dh2.15 billion. In return the sales also got exceeded by Dh1.41 billion. According to the Land Department during this period the total value of mortgages was Dh736.89 million. Al Ruwayyah was the most valuable plot and it was sold for Dh207.2 million. As the week ended, The Department registered a total of 81 transactions. During this week Dubai real estate has shown vast improvement by delivering such prominent sales and registrations. Apart from the Al Ruwayyah, the next two prominent sales were shown for plots in Emirates Hills-3 and on the Sheikh Zayed Road.

These two sales were again tremendously huge as the plot on Sheikh Zayed road is acquired for Dh124 million and the one on the Emirates Hills is for Dh20 million. As far as week sales are concerned, the area of the Emirates Hills was the most active among all. Not only this, but Palm Jumeirah followed 14 sales. The period was under review during which it got disclosed that mortgages worth Dh524.86 million were registered, out of which mortgage for Marsa Dubai was the most significant with Dh214 million. Moreover, area in Al Jadaf was another for Dh94 million. Apart from all these sales and Dubai land transactions, by value Al Ruwayyah recorded the highest turnover followed by Sheikh Zayed Road for Dh124.01 million and last but not the least Emirates Hills-3 at Dh59.68 million.

In Al Ruwayyah the largest area which was sold was a 430,338 square foot plot. On Sheikh Zayed road a plot of 64,586 was acquired whereas, a 40,000 square feet area got disposed of in Jumeirah-3 for Dh15 million. This was the report and data acquired related to property transactions and registrations by Dubai Land Department.

Law No. 9 Safeguard’s Dubai Property Sector

During this recession time, Dubai property sector is trying to come on the recovery path. During this tough situation the real estate investors are cancelling their contracts before completion, because of which Dubai government has issued law no. 9 in 2009. As global recession is prevailing, there is an acute shortage of liquidity in the property market, and thus property developers are not getting any new property contracts. RERA said, that despite of these contract cancellations there are some 30,000 units that are being made available in the year 2009 and in 2010, it will get increased to around 45,000 units.

This Law number 9 that has been issued in developers interest is basically got amended from Article 11 of Law number 13. Previously in article 11 the procedure that is to be abided by any property developer in the event of contract cancellation was mentioned, but the ruling being applicable was not mentioned in that article. Under this revised law number 9, the developer must notify the Land Department or RERA if any purchaser fails to make the installment payment for the property.

Once the notification is sent to the buyer, a written notice is being sent by the Land Department informing the purchaser about this breach, thus reminding him to rectify the fault within another 30 days, failing which the developer would cancel the contract. The most important fact regarding this law is if there are any other contracts or purchases associated with that particular contract, it will also get canceled. Moreover, a technical report from the site is a must to attach with the letter. A reference scale has been introduced for default purchasers as well.

With the emergence of this law both investors and buyers are being benefited as earlier no agency was there which could monitor these purchaser-developer transactions in Dubai.

Dubai Real Estate Buyers Cant Cancel Contracts Under Law No. 9

A legal expert suggested during the Dubai Society meeting held recently, that the Dubai property buyers cannot cancel their contracts under Law No. 9. However, the legal system has been somewhat sympathetic to the developers and given them the liberty to cancel contracts under this law. This decision was taken to discourage people from taking undue advantage of the down market. The only way now to cancel contracts, by a buyer, is by presenting an effective case in front of the court or approach the Dubai’s Real Estate Regulatory Authority.

Law No. 13, Article 11 was introduced in 2008 to standardize the procedure of cancelling the purchase of a real estate contract. However, over the time being there have been several debates on the law’s interpretation by the purchaser and the developer. Therefore, to normalize this situation, ruler of Dubai has introduced Law No. 9 to facilitate the procedure of termination of real estate contracts in Dubai. All contracts are legally bound by this new law even if the contract was entered before the law was passed, 30-April’09.

Procedure of Cancellation
If the purchaser fails to abide by the terms of the contract, the developer would have to inform the Land Department. The Land Department will then send a notice to the purchaser asking to fulfill contractual obligations within 30days. If the purchaser fails to do so within the stipulated time, the contract may, then, be cancelled.

Dubai RERA will be escrow signing body

Dubai RERA is Real Estate Regulatory Authority which was established in July 2007 by the Vice-President and Prime Minister of the UAE, His Highness Sheikh Mohammed Bin Rashid Al Maktoum. RERA is a part of Dubai Land Department that regulates licenses and manages all Dubai real estate related activities and transactions. It has been decided that from now on Dubai RERA will be the escrow signing body. The agreements pertaining to the management of guarantee accounts will now be related between the account trustees and Real Estate Regulatory Authority. This news was reported according to an agency official in Emirates Business 24/7.

The Trust Account Administration Director, RERA, Khalid Al Mutaiwai told the agency official: “The new agreements, titled 'Guarantee Account Trustee Agreements', will mention yearly charges that will now be payable by the trustee banks to Rera. Rera is expected to send out the new agreements to the Account Trustees or escrow banks, in a couple of weeks' time." The new agreements which are coming up will specifically outline detailed information about the management of the guarantee accounts.

As per the guidelines that have been mentioned, four major allowable account heads have been created for the payment out of the escrow account. The escrow account is basically a trust account which is being held in the name of the borrower to pay debts including insurance premiums and property taxes etc. The four heads that have been decided for the payment from the escrow account are: construction, project management, land and sales and marketing. Thus, RERA engages itself as a transparent and an effective regulatory body formulating various entities.