Business | Property
Freehold residence visa confusion rages
Buyers of freehold properties in Dubai are accusing developers of depriving them of 'promised' residence visas - a tool some developers still use to lure investors.
- By Suzanne Fenton, Staff Reporter
- Published: 00:06 May 27, 2008
- Image Credit: Gulf News Archive
- Buyers left in the lurch as master developers seek to register properties with land department.
Dubai: Buyers of freehold properties in Dubai are accusing developers of depriving them of 'promised' residence visas - a tool some developers still use to lure investors.
Developers are passing the buck to master developers Nakheel, Emaar and Dubai Properties.
Residents of International City's Riviera District are worried that there is a breach of contract since the residency visas have not been issued as contractually promised over a year ago.
One resident said, "We feel there has been a breach of contract somewhere as we have not been sold what we were told at the outset."
Registration
According to residents, the developer of the Riviera Lakeview Apartments, B&M, has been involved in a dispute with master developer Nakheel over registration, and this has delayed visa proceedings.
However, an official at B&M said that residents must understand that they cannot have residency visas until their units have been officially registered with the Land Department and the title deeds produced.
"We have approached the Land Department for the registration. Nakheel says the units have to be registered first and then they will provide the residency visas," Abdul Samad, deputy general manager of B&M, said.
Another source said that there had been internal confusion in the Land Department regarding the wording of the registration, which has delayed the entire process.
"There was an internal dispute within the Land Department over whether the units should be registered as net area or gross area," he said.
The source said the Land Department finally chose to use the net area, meaning all investors had to be notified again and measurements redone.
There are 221 units in the Riviera Lakeview Apartments, all pending registration.
"Upon the purchase of a Nakheel property, we will provide customers the basis for sponsorship, although the grant of a residency visa is still subject to the rules, requirements and procedures of the Immigration and Naturalisation Department," a Nakheel spokesperson said.
Samad said the whole registration process should be resolved in "a matter of months".
A resident of Central Business District 21, also located in International City, is also still waiting for his title deeds and residency visa.
He said, "I don't think they [master developers] had any idea what they were getting themselves into.
A statement from Emaar said, "Emaar Properties provides residency visas for Emaar homeowners in line with the rules and regulations of the Dubai Department of Naturalisation and Residency Department."
Officials of the Dubai Naturalisation and Residency Department - the visa issuing authority - were unavailable for comment.
Rules
How it works
Freehold ownership in selected areas of Dubai was first introduced in May 2002, sparking the real estate boom.
The law states, "If the homeowner has no alternative means of sponsorship for a residence visa, the first owner may be sponsored by your master developer [Nakheel, Dubai Properties or Emaar] for residency in Dubai, UAE, subject to the applicable immigration laws of the country."
The purchase of a freehold property apparently does not automatically qualify for a resident visa, officials say.
Mohammad Bin Braik, chief operating of Dubai Properties Group, said, "Resident visas for freehold buyers are subject to conditions which include that you cannot seek employment or run a business and one would assume the buyer has sufficient funds to support himself."
Blair Hagkull, managing director for the Middle East at Jones Lang LaSalle, said people should not rely on the master developer for their residency visas.
"Most people in Dubai are active in the workplace and so have a residency visa through their employer. But there is a select group which is not active."
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