Business | Property
Dubai clamps down on illegal off-plan sales
The Government of Dubai wants property developers to register their holdings and stop selling unregistered properties "off plan".
- By Babu Das Augustine, Banking Editor and Suzanne Fenton, Staff Reporter
- Published: 23:39 August 27, 2008
- Image Credit: WAM
- Shaikh Mohammad yesterday visited Dubai Municipality, where he reviewed the designs and components of several infrastructure projects being implemented to improve the quality of life and ensure a clean and safe environment.
Dubai: The Government of Dubai wants property developers to register their holdings and stop selling unregistered properties "off plan".
Dubai has issued a law making it compulsory for developers to register their properties with the Dubai Lands Department.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued the property registration law just a week after issuing a mortgage law, officials from the Dubai Land Department told Gulf News yesterday.
The new law bans property development companies from implementing their projects or selling their properties on the drawing board before actually owning the land on which the projects are to be built. "We have been getting numerous complaints regarding the ownership of various property developments while many of them were not registered with the Land Department," Mohammad Sultan Thani, Assistant Director General of the Dubai Land Department, told Gulf News.
"We expect the new regulation to eliminate such anomalies in the system." The new law with 15 articles makes it mandatory for property developers to register their sold properties on the registry, and will invalidate any transactions on unregistered properties. "The new law aims to help regulate the emirate's booming real estate sector and boost investor confidence in the property market," said Abu Ali Malek Shroff, Chairman of Shefield Real Estate.
"It is good for developers and investors. It stands as a proof of ownership in the event of any dispute between developers and master developers," he said. While the law gives developers a 60-day grace period to register any transactions carried out before the issuance of law, it also gives buyers a 30-day grace period to register their purchased properties.
"I think it's a good initiative," said Mohammad Bin Brek, CEO of Dubai Properties Group. " It brings order to the market and adds confidence. People can now make informed decisions about this market."
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