New Property Law

Read the details

A new property law no. 13, has been announced by the Dubai government, which might come in to effect soon (later this year). 

Business 24/7 had a press release on law 13 yesterday and they basically discussed 2 issues:

1. All off -plan property sales  has to be registered with the lands department within the next 2 months by all developers

2. These properties may not be sold on the resale market unless a minimum of " between 20 -  30 % has been paid by the investor( seller)

The article also mentioned that no developer may charge a transfer fee, only an administration fee, and the government was waiting to finalize an amount either 0.5 % or 1 % ( or possibly a flat fee?))

Another article of interest to ALL buyers & Sellers (click or copy paste the link below)

Developers remove visa guarantee from contracts

http://www.business24-7.ae/Articles/2008/8/Pages/08262008_6f328c662c554e7f8d23e78986cb6b4b.aspx

The above laws has serious positive and negative implications :

i.e.:  With the change of registration from the developers to the land dept will mean that developers will no longer be able to charge big transfer fees  ( like UP was charging a 10% transfer fee on Greens Community – Motorcity )  and that in future the transfer fee will be the standard 2% of the selling price

Developers having to remove visa guarantee would mean that Resident Visa would now no longer be guaranteed and could be removed at short notice for either all developers  or selected developments.

I suggest we review these implications and use this as an opportunity to write to our clients / potential clients informing them of these imminent changes and suggesting to them to buy now while the visa is still guaranteed.