Developers waive-off 30 percent payment before re-sale of units
Thursday, November 27, 2008
Emaar Properties has waived off the clause of paying 30 percent of the total property value before sale of their units in the markets.
According to the Chief Executive of Blu Realty International, Amr Soliman, the restriction of 30 percent payment of total property value before sale of units, no longer exists. Yet, another realty agent is also said to have waived off the clause.
The transfer and sale of off-plan properties was so far permitted only after the 30 percent of total property value had been paid, and no transfer was permitted until the payment was done. According to Emaar, this move was adopted to ensure that the investors and end-users purchasing their properties are genuine.
Early this month, Emaar launched two more payment schemes. One of the schemes permitted property payments for more than five years after handover. Another allowed potential investors to rent a property before they take a decision on whether to purchase it or not. This was done to offer investors with more options and revive property sales.
Property developer, Union Properties, however, has not announced any change, but, has stated that the company will not permit buyers to re-sell their units until they have paid atleast 20 percent of their property value.
On the other hand, Deyaar Development Company, revealed that the company has never insisted on any percentage payment before permitting resale, rather, it emphasizes on certain amount of down payment only.
Social BookmarkingAccording to the Chief Executive of Blu Realty International, Amr Soliman, the restriction of 30 percent payment of total property value before sale of units, no longer exists. Yet, another realty agent is also said to have waived off the clause.
The transfer and sale of off-plan properties was so far permitted only after the 30 percent of total property value had been paid, and no transfer was permitted until the payment was done. According to Emaar, this move was adopted to ensure that the investors and end-users purchasing their properties are genuine.
Early this month, Emaar launched two more payment schemes. One of the schemes permitted property payments for more than five years after handover. Another allowed potential investors to rent a property before they take a decision on whether to purchase it or not. This was done to offer investors with more options and revive property sales.
Property developer, Union Properties, however, has not announced any change, but, has stated that the company will not permit buyers to re-sell their units until they have paid atleast 20 percent of their property value.
On the other hand, Deyaar Development Company, revealed that the company has never insisted on any percentage payment before permitting resale, rather, it emphasizes on certain amount of down payment only.
Labels: Off-plan, Real Estate News
RERA announces new online software for off-plan sales transactions
Tuesday, November 25, 2008
Dubai's RERA (Real Estate Regulatory Authority) announced that all real estate companies in Dubai should henceforth use the new online software 'Oqood' for off-plan property sales and transactions.
Any off-plan property sales through registered agents or brokers with RERA should be done online using the software through the agency. The software will offer a unified template of property sales contracts between sellers and buyers, duly designed and approved by the Agency.
The property developers are given a time period of three months to train their employees on this new system. The training will be provided by Emirates Real Estate Solutions (ERES), who designed the software.
In the opinion of Sultan Butti bin Mijrin, Director General, Land Department, and developer of the Oqood system, this is an important tool to regulate the property market.
Social BookmarkingAny off-plan property sales through registered agents or brokers with RERA should be done online using the software through the agency. The software will offer a unified template of property sales contracts between sellers and buyers, duly designed and approved by the Agency.
The property developers are given a time period of three months to train their employees on this new system. The training will be provided by Emirates Real Estate Solutions (ERES), who designed the software.
In the opinion of Sultan Butti bin Mijrin, Director General, Land Department, and developer of the Oqood system, this is an important tool to regulate the property market.
Labels: Latest News, Off-plan
Registration deadline extended for off-plan properties in Dubai
Monday, November 10, 2008
The last date for registration of off-plan properties, under the pre-registration system, by the Dubai developers has been extended till the year-end. Earlier the first week of November was declared as the deadline for registration of off-plan properties.
According to a senior government official, the projects launched prior to introduction of pre-registration system, being sold as off-plan now, will have to register by the year-end. Stringent measures would be taken against those failing to do so, the official warned.
The Assistant Director-General of Dubai Land Department, Mohammed Sultan Thani, said that following the issuance of Law No.13 of 2008, developers are required to register all their units before launch with the Land Department, and only then proceed with their sales.
The Law No.13 regulates initial property registration in Dubai, and aims to create further safeguard consumer interest in the Dubai property market through introduction of mandatory system of pre-registration at the Land Department for off-plan sale contracts of property units.
As per the new regulation, any off-plan sales without registration will remain invalid. Off-plan sale implies the sale of real estate units on the basis of architectural plan of the property prior to building the structure. The registration has to be done by the developer and not the first purchaser.
During the secondary sale, the seller will have to keep the department informed and register the deed by paying necessary charges. In case of home mortgages, banks will have to register the deals and not the mortgagee, Thani said.
Social BookmarkingAccording to a senior government official, the projects launched prior to introduction of pre-registration system, being sold as off-plan now, will have to register by the year-end. Stringent measures would be taken against those failing to do so, the official warned.
The Assistant Director-General of Dubai Land Department, Mohammed Sultan Thani, said that following the issuance of Law No.13 of 2008, developers are required to register all their units before launch with the Land Department, and only then proceed with their sales.
The Law No.13 regulates initial property registration in Dubai, and aims to create further safeguard consumer interest in the Dubai property market through introduction of mandatory system of pre-registration at the Land Department for off-plan sale contracts of property units.
As per the new regulation, any off-plan sales without registration will remain invalid. Off-plan sale implies the sale of real estate units on the basis of architectural plan of the property prior to building the structure. The registration has to be done by the developer and not the first purchaser.
During the secondary sale, the seller will have to keep the department informed and register the deed by paying necessary charges. In case of home mortgages, banks will have to register the deals and not the mortgagee, Thani said.
Labels: Latest News, Off-plan, Property Law
New law ensures that Dubai is a safer place for investment
Wednesday, September 03, 2008
With the new law emphasizing that all its off-plan units be registered with the Dubai Land Department, the real estate market in Dubai is a far safer place for investment now, reveal legal consultants.
"The law is a step ahead in the vision of Dubai to develop a well-regulated property market, with particular emphasis being laid on consumer confidence and transparency"said Will Grinter, Legal Consultant, Clyde &Co., an international law firm.
Law No.14 will become effective in Dubai on the publication of next issue Government Gazzette. With large numbers of complaints pouring in from investors, in the off-plan market in particular, this new law will boost the security aspect in investments, and will a shot of much-required confidence in the market as a whole.
Apart from offer protection to off-plan investors, the new law will also enhance transparency in dealings of the secondary markets in off-plan property, and will also facilitate the registration process upon completion of development.
Grinter also warns that the new law does not include any special provision regarding project delays or cancellations, although RERA holds investigative powers.
A property court, due to begin operations soon, will deal with real estate disputes and is another positive step to ensure complete transparency in the market. Grinter also revealed that the new law would bring in a mandatory procedure that needs to be followed by any developer looking to end sale and purchase agreement.
Social Bookmarking"The law is a step ahead in the vision of Dubai to develop a well-regulated property market, with particular emphasis being laid on consumer confidence and transparency"said Will Grinter, Legal Consultant, Clyde &Co., an international law firm.
Law No.14 will become effective in Dubai on the publication of next issue Government Gazzette. With large numbers of complaints pouring in from investors, in the off-plan market in particular, this new law will boost the security aspect in investments, and will a shot of much-required confidence in the market as a whole.
Apart from offer protection to off-plan investors, the new law will also enhance transparency in dealings of the secondary markets in off-plan property, and will also facilitate the registration process upon completion of development.
Grinter also warns that the new law does not include any special provision regarding project delays or cancellations, although RERA holds investigative powers.
A property court, due to begin operations soon, will deal with real estate disputes and is another positive step to ensure complete transparency in the market. Grinter also revealed that the new law would bring in a mandatory procedure that needs to be followed by any developer looking to end sale and purchase agreement.
Labels: Dubai Real Estate, Off-plan, Property Law
Dubai mandates registration of off-plan property sales
Tuesday, August 26, 2008
It has been made mandatory that off-plan property sales in Dubai be registered with the Land Department of the emirate, and no developers will be permitted to charge transfer fee on such sales, according to a new law announced yesterday.
The Law No.13 of 2008 aims to regulate off-plan sales, and mandates registration with the land department, said Emad Eldin Farouq, Senior Legal Advisor, Land Department.
The practice of marketing residential or commercial units based on an architectural plan of the property, prior to building the structure, is termed as 'off-plan sales'.
"Any sale or disposition that transfers or restricts title will be void, if not registered in the interim real estate register," states the new law.
Hence any developer, who markets or sells other disposition prior to implementation of the law, will have to register it within 60 days, Farouq clarified.
The law also states that master developers and sub-developers will not be permitted to charge transfer fee on off-plan sales, henceforth. However, they will be permitted to accept administrative charges once it has been approved by the Land Department.
The Chief Executive Officer of Dubai Properties Group, Mohamed Binbrek, agreed that this is surely good news, as the interest of small investors and buyers will be protected, and that the Land department will now regulate the market. The new law is likely to add credibility to the market.
Last week, Dubai passed on a new mortgage law, which states that mortgage contracts need to be registered with the Land Department, and specified the size of the loan, the repayment period and the value of the property to which the loan is linked.
However, developers say that they will insist payment of a minimum of 20 to 30 percent of the property value prior to transferring to a second buyer under a resale transaction. They will also screen customer profiles prior to selling the property off-plan.
"he initial transfer and sale of off-plan properties will be permitted only after payment of 30 percent of total property value,"said an Emaar spokesperson.
Social BookmarkingThe Law No.13 of 2008 aims to regulate off-plan sales, and mandates registration with the land department, said Emad Eldin Farouq, Senior Legal Advisor, Land Department.
The practice of marketing residential or commercial units based on an architectural plan of the property, prior to building the structure, is termed as 'off-plan sales'.
"Any sale or disposition that transfers or restricts title will be void, if not registered in the interim real estate register," states the new law.
Hence any developer, who markets or sells other disposition prior to implementation of the law, will have to register it within 60 days, Farouq clarified.
The law also states that master developers and sub-developers will not be permitted to charge transfer fee on off-plan sales, henceforth. However, they will be permitted to accept administrative charges once it has been approved by the Land Department.
The Chief Executive Officer of Dubai Properties Group, Mohamed Binbrek, agreed that this is surely good news, as the interest of small investors and buyers will be protected, and that the Land department will now regulate the market. The new law is likely to add credibility to the market.
Last week, Dubai passed on a new mortgage law, which states that mortgage contracts need to be registered with the Land Department, and specified the size of the loan, the repayment period and the value of the property to which the loan is linked.
However, developers say that they will insist payment of a minimum of 20 to 30 percent of the property value prior to transferring to a second buyer under a resale transaction. They will also screen customer profiles prior to selling the property off-plan.
"he initial transfer and sale of off-plan properties will be permitted only after payment of 30 percent of total property value,"said an Emaar spokesperson.
Labels: Dubai Real Estate, Off-plan, Property Law
