The Dubai Court of Cessation has established legal principles for real estate sector, wherein, in-complete off-plan properties will not be registered directly in the name of buyers in the final real estate records.
They can be registered in the Initial Land Registry of the Land Department, as per the provisions of Act 13 of 2008.
On completion of off-plan units that are sold in advance, the developer may apply to the Land Department to register those units in the names of buyers who have met their contractual obligations. But, this can happened only after the developer is in receipt of completion certificate from competent authorities.
In the meanwhile, the Land Department is granted the right to register units in the names of buyers, in case they submit a request, or by the developer, on behalf of the buyers when they have fulfilled their commitments.
The court confirmed that the developer is obliged to apply to the Land Department for registration of sold units in the final Land Register, within 60 days from the date of the law. But, this needs to be done only if the units are 100 percent constructed. Else, it will be registered in the Initial Register as incomplete units.
The Court of Cassation clarified that the developer's role will be confined to submission of the application to the Land Department. The department will be the only body that can take action according to its powers.