Have You Read New Amendments In Dubai's Property Law?

New real estate act:

The new real estate law of Dubai has been published. According to the media sources, it will take effect in January 2016. The law includes new rules and regulations for the property sellers and buyers.
Dubai law

Important things:

The important things mentioned in the act are as follows:

Real estate registrar:

The real estate registrar will register all property projects. Your property is now registered into the government database. You are given the official document showing that you are the owner.

Developers won’t collect registration fees:

The developers won’t collect the registration fees. They only charge the administration fees.

Required approval by DMA:

This fee is first approved by the DMA.

Off-plan sales:

According to the new Dubai law, the developer cannot sell units off-plan unless it proves that it owns real estate over the project land and open an account (escrow) for him.

Requirement:

The disclosure statement that is attached to the purchase and sale agreement ensures that buyers are informed of all the relevant facts before purchasing.

Delayed projects:

The developers will be fined if they are delayed to compensate buyers after six months.

Important:

This applies to existing developments depending on the stage of completion. The act also focuses on provisions for the cancellation of projects or appointment of a new developer where there is a delay
Dubai Law

Rent cap:

The act is supposed to introduce some new rent cap, so rents will set by landlords according to the market trends.

New property regulator:

The department of Municipal Affairs (DMA) Abu Dhabi is given the task to regulate the real estate sector. DMA also responsible for:
  • Issuing licenses.
  • controlling escrow accounts
  • canceling real estate projects
  • implementing the act
  • The function of DMA is same as RERA.

Association for owners:

The owners association will have:
  • title to the common property
  • legal status
  • responsible for the property’s maintenance
The act says that the association can apply to the courts to sell the owner’s unit who is unable to pay the service charges.

Liability for developers:

There will be a 10-year liability for developers involving important building defects. The developer is now responsible for fixing all the issues that manifest 10 years after the handover.

Termination of off-plan purchase:

According to the latest Dubai law, off-plan purchasers can terminate their unit purchase in case of substantial prejudice.






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