Dubai Introduces Greater Transparency and Purchaser security Into It's property Laws

Dubai asset Law and freehold: Overview:

Prior to 1999 Non-Gcc expatriates resident in Dubai were only permitted to rent or own asset under Uae federal law approved 99-year leasehold interests.

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In 2002 - the Dubai government announced that it would permit expatriates to own freehold asset in premium projects - and abruptly created the Dubai international asset sector.

Earlier projects had 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 society 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 normal Sheikh Mohammed bin Rashid Al Maktoum - signed a decide permitting foreigner investors together with local residents - to buy and own freehold asset in premium projects - and the Dubai asset sector rapidly grew in size and significance immediately after this.

Nakheel concurrently launched the Palm Jumeirah - as a freehold project - and all previously industrialized leasehold asset was automatically converted to freehold.

The new 2002 freehold policy - and the decision by the major government owned scholar developers - to subdivide scholar plots into individual sub plots for sale to other developers opened the shop to new entrants such as:

Damac Properties,
Dubai Properties,
Mizen,
Eta Star Properties,
Union Property.

Although the freehold liberalization policy was announced in 1999 - it was not officially incorporated into the law until the 14th of March 2006 - when the Dubai government issued a law authorizing foreign proprietary of asset in designated project areas of Dubai

With the freehold asset law in consequent - any asset purchased by a foreigner is listed under his or her name for life - and this enables the asset to be registered with the Dubai Government Lands Department.

The owner then has full proprietary over the use and proprietary of the asset together with the right to sell, lease or rent it.

Registration of asset together with off plan units: Law no 14:

Law no 14 came into consequent in Dubai in October 2008 - and requires all off-plan units to be registered with Dubai Lands department - which will make the Dubai real estate shop a safer place for home purchasers and investors - and responds to past complaints from investors - especially off-plan investors.

The new law also establishes a mandatory policy applicable to any developer seeking to terminate a sale and purchase contract.

The new asset law requires that the sale of all off-plan properties be fully registered with the Land department before they can be resold.

This will have a natural slowing consequent on the rate at which any asset can be branch to investment - and be flipped and resold.

The registration facts must include:

the name of the purchaser and the vendor;
the value of the property;
the 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 will be considered void - and therefore unenforceable in any court of law.

An interim registration law came into consequent on August 31 2008 - providing that any proprietary convert of off-plan properties in Dubai will 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 the law came into consequent are not exempted - and must be registered within 60 days of the laws enactment.

The law will also prevent unscrupulous developers and agents charging change fees - although they will still be able to payment management fees which will be capped - and only payable upon the Land Department's registration of the sale.

So bad news for speculators - as the registration policy will slow down the shop - but good news for home owners and long term asset investors who will have a well protected title under a Torrens registration system similar to that in place in Australia.

The new mortgage law:

The new mortgage law - which came into consequent on October 30 2008 - states that mortgages will be invalid if not registered at the Dubai Land department or the new Interim Real Estate Register - and it sets out all procedures regarding a mortgage and its legal effects on the parties to it.

It also includes operation procedures for the mortgaged asset - and prescribed proper guide between the bank and the borrower.

The mortgage law is designed to supply greater regulation within the Dubai asset shop to safe buyers.

Under law 14 a mortgage may only be offered by a registered financial institution - like a bank or finance enterprise - and the mortgage is required to be fully insured.

Each mortgage has to be registered with the Land department - the details required for registration being:

the number of the mortgage;
the value of the asset being mortgaged;
the name of the person to whom the money 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 set policies and to create awareness of proprietary and responsibilities in the asset sector.

The Strata Law:

The Strata Law was issued and came into consequent on March 31, 2008. It defines the responsibility of asset owners and developers in the management of coarse areas in multi-owner developments, like gated communities and apartment buildings.

Dubai asset Court:

A new scholar Dubai asset Court was established in September 2008 - solely to adjudicate over asset disputes.

It is likely to cut the workload of Rera - which since it's formation - has been swamped by asset cases - together with many for developer project delays and noncompliance with the asset developer's customary description.

In overview the new Dubai asset laws introduce a regulatory system in respect of the Dubai asset shop that in many respects now offers classic buyer protection to Dubai asset purchasers to that offered by many western jurisdictions.

A detailed overview of the new laws may be obtained from [http://www.2dayDubai.com/dubai-property-investment.html].

Dubai Introduces Greater Transparency and Purchaser security Into It's property Laws

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