Ajman: Ajman Real Estate Regulatory Agency (ARERA) has begun to put land and property regulations in place to streamline the emirate's growing real estate sector, a top official told Gulf News in an exclusive interview.
Developers who want to build projects in Ajman now must register with ARERA, according to the newly issued Emiri decree No 11, 2008 which is aimed at regulating the emirate's properties and construction sector.
Omar Al Barghouti, director of ARERA told Gulf News the massive boom in the construction sector needs appropriate rules and regulations to monitor, control and help in its development and to prevent any unexpected problems in this important field.
"ARERA will work on organising the real estate activities and will monitor the real estate sector's development in Ajman by setting up policies and legislations in the coming months," Al Barghouti said.
The agency will also oversee the implementation of all policies and other related issues, he said.
On the impact of the global financial crisis, he said, as part of the UAE, Ajman is also not immune to the crisis.
"Ajman is part of this country. The UAE is closely connected to the global economy like other important players of the world and could be affected by the existing financial global crisis," he said.
But it is very important to know that the impact of that financial crisis is happening at different levels and in different parts of the world," he said.
Al Barghouti said the impact of the world financial crisis on the UAE is not severe. "We have not reached a dead end," he said.
"On the contrary, the UAE is moderately touched by such crisis," he said.
"I expect that within six to nine months the global financial situation will be better," Al Barghouti said.
However, he added that there are some problems due to the sheer volume of project running at one time.
"ARERA is drawing up policies for property projects and commercial buildings, recommending legislation as well as regulating relations between property developers and buyers, recommend speedy, out-of-court settlement of disputes that may arise between the two parties," he said.
Al Barghouti said there will be special requirements for all developers in Ajman which they will have to adhere to.
"ARERA will decide if a developer can also hold an estate agency's licence. This licence will be valid for one year and must be renewed each year. Our rules are not hard to achieve but those requirements are very important," he said.
Al Barghouti urged the developers and real estate agents to obtain trade licence from ARERA.
The Emiri Decree No.11, 2008 was issued by the end of last year by His Highness Shaikh Humaid Bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman.
"Earlier the developers used to develop here through general licence obtained from other authorities such as the municipality and the economic department. But in order to regulate the business all developers must be now working under ARERA," he said.
Al Barghouti said his agency will have full cooperation with Dubai's Real Estate Regulatory Authority.
"Those who obtained their licence from Dubai Regulatory Authority, if they wish to develop in Ajman they must be registered with us too," he said.
Al Barghouti calls all developers to cooperate as soon as possible with ARERA in order to help register the developers with the agency.
"I believe that with the establishment of this agency the buyers will have more confidence in the projects. As all developers must have escrow bank account which will protect the buyers' rights. The escrow account will be monitored by the agency and the bank management," he said.
He said all developers must open trust or escrow account in one of the banks approved by the agency and deposit money paid by those who buy property or the money given by the financiers. This money will be spent on the construction of the identified real estate before depositing the available balance in the developer's bank account.
1. Lay down general policies for the real estate projects and construction sectors
2. Suggest legislations to help organise the real estate business in Ajman
3. Preserve the rights of the buyers
4. Monitoring activities of the developers as well as the auditing of the real estate records and it will settle any dispute that could happen
5. Monitoring real estate related advertisement in Ajman
Documentation: Required papers
- Registration form
- Trade licence copy
- The company's establishment contract
- Letter from the company stating the authorised signatories
- Approved plans from municipality and planning department
- Feasibility study, including construction contract and expected cost.
-Expected marketing cost, which should not exceed 5 per cent of the total project value
- Statement of instalments made to the developer against the purchase of the land
- No objection letter from the main developer along with balance statement
- The municipality approval for the project's name.
- Undertaking that all the attached documents are accurate n - A copy of the trade licencees in the UAE
- The company needs to open a real estate office in Ajman (not in the free zone)
- Six Month bank statement n Audited financial report approved by an authorised auditing firm in the UAE.
For information on the real estate sector, within the UAE, please visit our sister site, GNProperty.com.