Dubai Land Department can impose penalties for developers delaying sales deed registrations when they have no valid reasons, says Walid Al Zarouni of W Capital. Image Credit: Gulf News Archive

Dubai: Developers in Dubai must be made to complete registration of sales deeds in seven days rather than the 60-day window given to them to prevent misuse, according to the head of a brokerage firm.

This is because some developers purposely delay registering the units in the ‘Oqoodi’ system, and which in turn has a negative impact on the sector.

“This will imperil investor confidence in the Dubai market,” said Walid Al Zarouni, Chairman of W Capital. By delaying registration, “developers benefit as the price of the units is used as available liquidity, especially if there are a large number of units or big bank deposits with high interest rates.”

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A way out would be to impose heavy fines on developers for any such delays. Or another way would be to issue the buyer’s cheque in a special account of the Dubai Land Department, which will force the developer to start registration process immediately to get access to the funds.

Al-Zarouni says it should not stop with that – even registration fees on the transaction can be deposited into a special account with the Land Department.

“The momentum in Dubai’s real estate must be maintained by bridging any gap that could constitute an obstacle to progress,” the W chief added.