Monday, October 20, 2008

Abu Dhabi to emulate Dubai in introduction of real estate laws

With an aim to introduce major transformations in Abu Dhabi property market, Abu Dhabi plans to introduce real estate regulations as that prevailing in its neighbouring emirate Dubai.

Al Tamini, the Dubai-based Law firm, is on discussions with the Department for Municipal Affairs in Abu Dhabi, which handles real estate legislation for the emirate. The firm has suggested introduction of strata, escrow and broker laws, to improve regulation, and provide investors the much-required confidence when investing in the region.

During the year 2002, Dubai introduced freehold ownership of property in chosen areas, sparking its six-year real estate boom. The proposed introduction of laws would essentially focus on the change in freehold ownership of land.

The Associate Lawyer at Al Tamini's Abu Dhabi office, Walter Robinson, said that the investors comfort was the most important and that it is vital for the investors to know that they are investing in a property that has a real estate title deed, the system of ownership of which, is recognized on par with the best international practices.

According to Robinson introduction of freehold ownership rights is a vital and fundamental change to property laws in Abu Dhabi.

"An Escrow Law protects investors and ensures that developers actually deliver projects. This legislation is being considered by Abu Dhabi to cover residential and commercial properties," he revealed.

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