Developers saw them as singular and uncommon cases in the sector
Brokers: delaying the issuance of the "temporary ownership" of the real estate negatively affects the market
The Real Estate Registration Law regulates the issue of registering sales contracts to preserve the rights of both parties.
Archives
Shawq Al Kathiri.
Archives
picture
Real estate brokers reported that the delay of some developers in registering sales contracts for real estate, in a "contractual" system, affects the confidence of the real estate investor, and thus the sector as a whole, calling on developers to quickly register contracts to preserve the vitality of the sector.
In statements to Emirates Today, they confirmed that they had spotted a number of complaints from investors, stating that some developers were late in issuing “temporary ownership” of the property, demanding that the registration fees be deposited in a special account at the Lands and Properties Department, to stop these behaviors on the part of some developers, and urged them. On the speed of recording.
On the other hand, real estate developers emphasized that these behaviors are individualized by some companies, and that they are not widespread in the market, stressing that everyone adheres to the laws and instructions of the regulatory authorities.
In turn, the Dubai Land Department said that the Real Estate Registration Law regulates the issue of registering sales contracts to preserve the rights of both parties, and that the legal period for registering the property is a maximum of 60 days from the date of the first payment.
Service providers
The CEO of Harbor Real Estate, Muhannad Al-Wadi, said, “This behavior exists in the market, but it is not common, and this behavior constitutes pressure on real estate service providers, as it puts them face to face with the real estate investor, and there are many complaints related to this matter, and the real estate broker bears it. Or the real estate service provider », pointing out that the developer’s delay in registering the contract raises concerns for the real estate investor, calling for the necessity to impose large financial fines on developers who are late in registering contracts, because this matter affects the reputation of the real estate broker, the investor and the real estate sector as a whole.
For his part, Chairman of the Board of Directors of "W Capital" real estate brokerage, Walid Al-Zarouni, said that "some developers are late in registering real estate units in the (contract) system, and this behavior will have a negative impact on the real estate sector in the Emirate of Dubai in the long term."
Al-Zarouni added that the developer’s delay in registration creates a kind of anxiety for the real estate investor, calling for imposing financial penalties on developers who are late in registering real estate units in the “contract” system.
He pointed out that the real estate developer achieves benefit from delaying the registration of units, as the price of the units is used as an available liquidity, especially in the event that there are a large number of units or deposited in the bank and benefit from the interest rate, proposing that, to solve this problem, a check is issued for the real estate registration fees. , It is deposited in a special account of the Dubai Land Department, so that the developer is forced to register the property immediately.
For his part, the general manager of the Royal Liwan Real Estate Company, Muhammad Hareb, said that “there are some violations by some developed companies in relation to registering the property and issuing a temporary ownership certificate,” indicating that these practices could be for several reasons, the most important of which is keenness The developer is to benefit from these amounts deposited in his account, and delaying the issuance of the sale and purchase contract will result in delaying the delivery date of the property in the end.
He stressed the need for emphasis on the part of the competent authorities regarding the issuance of temporary ownership during the real estate registration period or during the initial seizure period.
Hareb suggested paying the real estate registration fees directly to an account at the Lands and Properties Department, and not depositing them in the developer's account.
The real estate market
In addition, the CEO of Standard Real Estate Management, Abdul Karim Al Mulla, said, “These behaviors exist in the real estate market, as a number of developers resort to postponing real estate registration to take advantage of the sums that investors deposit in the developer's account,” indicating that this harms the real estate market. He called on the regulatory authorities to stress them to preserve the real estate market, especially as brokerage firms receive many complaints from investors in this aspect.
In the same context, the Director General of Marketing and Sales at Al-Rowad Real Estate Company, Alaa Masoud, said that "the investor must be aware and demand to register the real estate unit, as long as he pays the first payment," indicating that few developers are attracting clients with the offers they present. Free registration fees, and in the end the registration is postponed, and this is exploited, and the 4% registration fee is negotiated again, calling on the regulatory authorities to monitor.
Individual behaviors
On the other hand, the CEO of Al-Waleed Real Estate Company, Muhammad Al-Mutawa, said, “What happens is the individual behavior of some developers, and the reason is often the lack of liquidity for individuals, or for developers, is the delay in delivery or the lack of readiness of the unit, which was common in The beginning of the real estate boom in the market, but it is now retreating », pointing out that this behavior of some developers must be tightened control by the department, because it harms the market.
In the same context, the CEO of "Azizi Real Estate Development", Farhad Azizi, said, "The department has put in place strict and deterrent policies against violating developers, and as developers, we need to work with regulatory authorities to contribute to the prosperity of Dubai and the UAE, to continue its progress, and to maintain and enhance levels of transparency and trust." .
Customer confidence is extremely important to any business, especially as it ensures continued growth by maintaining clients who are our ambassadors.
In turn, the president and founder of "GVG" Real Estate Development Company, Ali Al-Salami, said that “there is no excuse for the developer to delay registering the property that he sold to the investor, under any circumstance, given that the laws obligated the developer and not the investor (the buyer) to register the sale within 60 days of Date of conclusion of the reservation form or sales agreement ».
Al-Salami added that the registration of the “pledge of allegiance is the basis upon which to later protect the rights of both parties. The rules and procedures that were enacted in the interest of the real estate developer when the buyer breaches his contractual obligations does not mean that the developer's powers in this case are absolute and free from oversight, but rather are subject to these rules and procedures. To oversee the competent authorities, which have the right to cancel it and nullify any effect it has had.
Legal proposals to increase the fine for late registration for developers
The legal advisor, Shawq Al-Kathiri, said that “the contract is the law of the contracting parties, so it is not permissible to revoke or amend it except with the agreement of the two parties or by virtue of a court ruling. The implementation of the contract is not limited to what is stated in it, but extends to what is its requirements according to the custom and the nature of the behavior. That the legislator set out in the Civil Transactions Law, but he was not satisfied with that rule to rule the actions, so he intervened, well he did, by setting the rules governing how real estate wealth is traded, and so that the transactions related to its circulation remain publicized to all, in a way that preserves rights and prevents them from being tampered with, the text of the article was 1277 of the Civil Transactions Law, which came with an established rule that ownership does not transfer between contractors or in the right of others except by registration.
She added: “In light of the development in the market, it was permissible for developers to announce their projects before starting work or in the process of construction, and accordingly, there was no possibility of recording actions until after completion and completion of the project.
In the timeframe between disposal and registration, there could have been someone begging himself to sell the real estate unit to more than one investor.
And she continued: “Here the legislator intervened again with Law No. 13/2008 in the matter of organizing the initial real estate registry in Dubai, then Executive Council Resolution No. 6/2010 approving the executive regulations of the law, according to which the developer must register the properties sold on Map within 60 days, without nullifying the action.
However, the invalidity, as a general rule, is not decided upon once the prescribed time period has been exceeded, and it is not decided upon unless the developer insists on not registering.
In the event of exceeding the time period, a fine of 10 thousand dirhams will be imposed, and the developer is exempt from paying it if he submits a registration request during that period, even if the registration elapses beyond that period.
And she continued: “This delay is sometimes due to the developer's desire to postpone payment of the fees prescribed for registration, and other times because of the disagreement between him and the buyer regarding the installments, which is a legal breach of the rights of the investor, and is ultimately negatively reflected on the market.”
She indicated that the solution lies in two matters, the first of which is to increase the imposed fine, so that the developer will lose the intended benefit of delaying the payment of fees, and the second is not to exempt the developer from the value of the fine, even if he submits the registration application during the imposed timeframe, as long as the registration procedures are not completed during it, unless If the reason is due to the circuit.
Follow our latest local and sports news, and the latest political and economic developments via Google news