Gulfnews: No more frustration over project delays
Posted by 7starsdubai on September 25, 2008
By Suzanne Fenton, Staff ReporterPublished: September 24, 2008, 23:39
Investors in Dubai’s property sector will no longer have to bear with frustrating project delays, thanks to new laws that hold developers accountable.
The introduction of Law 13 and Law 14 aims to increase transparency and honesty in Dubai’s property sector, according to senior officials at Dubai’s Land department.
“After registration and approval, all the property information is entered into the system. We will know all details about the projects. There is no reason for delays,” said Mohammad Sultan Thani, Assistant Director-General of the Land Department, during a media roundtable yesterday.
Law 13 requires all developers to pre-register off-plan properties with the land department to create a full database of property transactions.
Law 14, or the mortgage law, makes it easier for banks to secure proof of land titles.
Both laws came into effect last week.
“Law 13 is very good for the market,” said Marwan Bin Galita, CEO of the Real Estate Regulatory Authority (Rera).
The main objective of Law 13 is to ensure developers register all projects before they launch sales.
“No one can release a project unless all the approvals are in place,” Bin Galita said. Under this law, approval must be sought from about five specified government bodies, including the RTA, Dewa, Dubai Municipality, Rera and the Land Department.
Sultan Butti Bin Mejrin, Director-General of the Land Department, said action will be taken against developers violating the law.
Currently, some developers demand a deposit on the unit before a sales and purchase agreement is given. Law 13 states that as soon as the deposit is paid, the sales and purchase agreement should be given immediately.
The new law also stipulates an acceptable increase in the floorplan of a unit. On completion, if the floorplan is smaller than originally agreed, the buyer is entitled to compensation.
Under Law 8, developers have six months from registration to start construction on a project. And developers are not allowed to cancel a project without first informing the Land department.
In line with efforts to increase transparency, the property court is set to begin operations in the first week of October.
Bin Mejrin estimated that 96 cases have been solved with mediation in the Land Department so far.
“The biggest challenge is collecting the data. The other challenge is the behaviour of the investor,” Bin Galita said, referring to those investors who still do transactions with unregistered developers.
Bin Galita also said that the new rent cap will be completed and announced by the end of October.
All three officials said the global financial credit crunch, negative market reports or the recent wave of investigations in Dubai will not damage the market in any way.
“I still have confidence in this market,” Bin Galita said.
Around Dh200 billion worth of transactions have been registered so far within the Land department.
Black and white
Registered developers 826
Registered projects 1,624
Registered brokers 4,154
Certified brokers 1,300
Registered broker offices 1,772
Authorised banks 34
Registered contracts 2,176
How to buy
1) Decide what property to buy
.2) Check it is a registered developer, with an approved project
.3) Check trust account is in place.
4) If you want an agent, check that the agent is registered.
Sorry, the comment form is closed at this time.