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New Dubai property law comes into effect |
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9/4/2008 10:48:09 AM |
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Law number 13 of 2008, governing off plan property sales in Dubai is set to come into effect this week. The law will introduce mandatory system of pre-registration for sales contracts at the emirate's Land Department. Any off plan sales regarding real estate units in the city that are not registered will be legally invalid.
The registration system is the next stage in the government of Dubai's efforts to increase the levels of transparency in the local real estate market, along with the introduction of a specific arbitration agency, the Real Estate Regulatory Authority (Rera), and legislative measures such as the escrow law.
These initiatives come at a time when investor confidence in both upcoming and existing projects has been shaken following a series of scandals in the local industry.
Although the system will initially be undertaken by the Land Department, the duty will eventually pass to master developers, who will be obliged to register all purchases by sub-developers.
According to an explanatory report authored by Chloe English and Alexis Waller from legal firm Clyde & Co's Real Estate department, the registration system is already up and running and will work in tandem with the current project registration system in place at Rera following the introduction of Law number 8, the escrow law.
Law number 8 declared that all developers had to be approved by Rera and have an escrow account, which all monies from investors would be paid into and would be used solely for the construction of the development.
The system also paves the way for easing in the emirate's Law number 14 of 2008, regarding mortgages, allowing investors to register against off plan projects.
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Source: Ameinfo.com |
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