Dubai New Property Law

Property Law:

Property law is set a of rules defined to govern the various forms of ownership of properties which include real property and personal property under the general law legal structure.

There are two kinds of property moveable property and immoveable property. Moveable property is associated with personal property and immovable property is associated with real property.

New Law came into effect on Dubai Property:

New law has been implemented on Dubai property recognized as law number 13 which governs the off plan property sales in Dubai. It states that any off plan sale of property in Dubai that are not registered with the Emirates Land Department would be legally invalid.

The initiatives of registering property are to increase the transparency in the local real estate market and it comes when investor’s confidence in investing in property is high.

Recently the system is controlled by the land department, but it will be shifted off to the master developers soon to control the registrations of all purchases by the sub developers.

The system also defines some rules and fee structure in purchasing properties which says:

1) Developers would be liable to pay an amount of 370dirhams per off plan property for its registration.

2) Before construction, total 2% more would be charged which would be payable by both seller and buyer 1% each.

3) Further, a positive point system says in favor of developers is that there are no transferring charges.

What If there is a violation of Contract?

Incase there is a violation of a contract, off plan system law explains its consequences as follows:

1) If a buyer violates, according to law the buyer would be issued with a legal notice granting 30 days to comply with the contract obligations.

2) If the buyer fails to respond with in the granted days, then developer gets the right to cancel the agreement and return the amount paid by the buyer keeping 30% of amount from the whole paid amount.

3) If a project is of huge value, still the developer can’t claim for more other than 30% that is allowed by the law.

What would be the status of long leases executed by foreigners?

Many development plans are under process and are implemented to sell it out to foreigners all across Dubai which includes Dubai Investment Park, Dubai Silicon Oasis and more. Long leases does not offend this new law neither any federal law. Such properties are just treated in other way for some specific reasons which are:

i) Unregistered property leases remain personal rights.

ii) Unregistered leases are still capable of inherited.

iii) Problems and disputes which could arise between buyer and the seller of an unregistered long lease property will still be settled by the rents committee.

Procedure to ensure Property Registration

The law provides a facility to the buyer to inspect about the property registration which would be demonstrate by the Land Department and will provide a certified copy of it to the buyer. The purchase can make his own enquiries directly with the Land Department to verify who the owner of the property is and what third party rights the property to.

www.internationalbusinessdir.com