Thursday, August 02, 2007

Real Estate Regulatory Agency for better supervision of registrations and property laws

The Dubai Land Department, that supervises the booming property sector of the emirate, is in the process of undergoing a major reformation.

The department plans to create two agencies under its wing, so as to keep pace with the strong flow of freehold property registrations, and various add-ons to the regulatory framework of the emirate.

This has been planned following an announcement by His Highness Shaikh Mohammad bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai, which led to the establishment of the Real Estate Regulatory Agency (RERA), the first body to be affiliated to the Land Department.

The agency has been assigned the task to supervise the key regulations pertaining to the property sector, including the recent regulations on trust accounts, real estate brokers and the responsibilities of Home Owners Associations (HOA).

A separate agency will be created shortly to exclusively deal with the freehold title deeds registrations in Dubai.

According to officials in the Land Department, the two major works of the department - registration, and monitoring and regulation of the market, will now be handled by the new agency.

The Executive Director at the property division at Morison Consulting, Sudhir Kumar, said the rapid growth of Dubai real estate sector has made the move of Land Department inevitable.

He said that supervising the process of land registration and keeping tab on regulations are huge jobs, and it makes better sense to split these tasks, for better performance and efficiency.

The main role of the agency will be to grant license and regulate real estate brokers in Dubai. The agency will also supervise the escrow account which was introduced recently for safeguarding the buyers payments in special accounts.

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