Strong stability «sector» in the emirate boostTruth Consultancy
The application of the Real Estate Regulatory Act in Abu Dhabi in January 2016
Abu Dhabi Mohammed Abdel-Hay
Date: ٍ09 September 2015
His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi Law No. 3 of 2015 on the organization of the real estate sector in Abu Dhabi, which employs six months after its publication in the Official Gazette no on the first of January 2016, where the deployment of law in 30 last June.
Ensure law and published in the latest issue of the Official Gazette of ninety items real estate sector organized in Abu Dhabi. The law assigned to the Department of Municipal Affairs the task of organizing the real estate sector and its development and control it and supervise all the relevant things done.
The law also established the record real estate development, prepared by the department and that includes all the information and data relating to the sector, and the development of law, conditions for licensing real estate professionals private mediators and residents, surveyors and select them of their duties and obligations, and committed developers law to open an escrow account for new projects, and set conditions for sale on the chart most notably approval the competent authorities on the real estate development project and the deposit at the Land registry project in addition to open an escrow account for the project.
Included articles of the law provisions related to the organization of the mortgage insurance of property, rights of surface and use as well as rights related to land and property, as the law established the condo, and text as a non-profit organization, and enjoys independent legal personality and has the right to sue and sue the owners of real estate units and tenants as the law set conditions for the establishment of the condo and put the filtered mechanisms.
The developers and brokers Real estate experts and their happiness regulate the issuance of real estate law in Abu Dhabi yesterday in the Official Gazette and be applied after six months.
They stressed that the new law is a huge boost to the stability of the real estate sector and create a suitable environment for the growth and prosperity.
He noted that the law obliged developers to open an escrow account for each project, also granted the Department of Municipal Affairs the authority to issue licenses and established real estate registration system to regulate the market and reduce speculation, and that the law protects investors and entrench transparency, and stressed that the new law provides a unique environment for a strong start for the real estate sector in Abu Dhabi, stating that the Emirate of Abu Dhabi was in dire need of a law regulating the real estate sector, which accelerated in an unprecedented growth during the past years.
They pointed out that the law protects investors, developers, developers and contractors in particular and the real estate market in general, especially after it included provisions is the first of its kind, such as the new Land Registry and securities ownership and regulation of real estate brokerage and development of new jobs, making the real estate sector in Abu Dhabi pays to move forward in a strong inception.
Reda Muslim economist and partner at Truth, The Economic Consulting believes that the most important advantages of the new law is a real stability and the establishment of rights as to those who deserve it, whether the developer or owner entrant or entrant means establishing rights by extension, leading to a boom in the real estate market in Abu Dhabi, and the existence of contracts ownership for buyers of real estate units in Abu Dhabi, whether apartments or villas, noting that these contracts give more confidence on the real estate market in Abu Dhabi.
He says the new units owned entrants will enable the mortgaged real estate and this is very positive, and we thus ensure the stability and availability of funds and tranquility to the investor, and thus two birds with one stone law has hit where led to the stability of the market and regulation, as well as the stability of the investor and the consolidation of its relationship with the owner or financing institutions.
He says foreign buyers they needed an official for decades to protect their rights and their purchases and the law of the new’ll enjoy this right, and I see that the title deeds to be issued by the Department of Municipal Affairs need to be clarified more especially since the majority of previous buyers of residential units in freehold areas in Abu Dhabi, whether leasing or usufruct system they need to adapt themselves quickly Those buyers bought their units from real estate companies that have received approvals for building and construction and soothing of the Department of municipal Affairs, and I think that the circuit Stovq this situation quickly and smoothly because the government is strongly supportive of foreign investment and provide him with all the prosperity potential.
It is expected Reda Muslims that the new law leads to double the number of willing investors to buy and own the new real estate projects in Abu Dhabi, pointing out that he currently resides in Abu Dhabi by foreign investors from many countries, most notably Canada, America, China and countries in Europe and elsewhere who are interested in buying more villas private residential units in distinct areas, such as Saadiyat and Reem and Yas and those who were in dire need of the laws and regulations of the resort to in the event of a disagreement with the developer, and no doubt the availability of their ownership of the contracts from the Department of government of municipal Affairs will have the confidence element and guarantee for their investments, I sensed the presence of fear among a lot of these investors but this fear will disappear at the moment after the availability of real estate registration record, which guarantees their money and their rights, they must title deeds contain detailed information about how to sell units or leased or mortgaged, but there must be a clear vision especially as the operations of foreign ownership in Abu Dhabi increases in the future Big.
It demands satisfaction Muslim approval and controls work for everyone to follow the mechanisms that are administrative acts ownership of bonds completion and related sale, lease or otherwise by a competent staff and in record time so that we encourage the phenomenon of foreign ownership in Abu Dhabi and pay the real estate sector forward. Reda Muslims as demanded by Department of Municipal Affairs to intensify meetings with developers and buyers and investors to know the problems and crises that have occurred during the past period and the study of the most appropriate solutions to overcome them even Ataatkrr any problems because the real estate sector in Abu Dhabi of the most important economic sectors, and proved that the government is keen strongly regulated.
He confirms Dr. Engineer Fouad sentences Prime Trust Contracting Company in Abu Dhabi, the big benefits of the law regulating the real estate sector in Abu Dhabi on the real estate and construction sector environment, noting that one of the benefits and advantages are real estate registration record feature, where the new record protects investors and developers rights, especially since this record stressed to ensure the existence of an account for each real estate project overseen by the Department of municipal Affairs allocates the amounts deposited in it exclusively to build the project, the developer is not entitled to dispose of the real estate escrow funds only after the completion of 20% of the projects.
It notes that the new record items provided for the other important point is issuing ownership contracts are issued for the first time from the Department of Municipal Affairs of the buyer of real estate units in Abu Dhabi, as the development of new regulations for sales operations on charts record (map) and a mortgage, and linking promote developers to sell residential units on the charts or participation in national and international exhibitions or the announcement of new projects with the written consent of the circle is completed within a period of time not exceeding one month.
He said the sentences we are today in front of a distinctive legal organization to regulate the real estate sector in Abu Dhabi, there Sjlan Akarian initial first and second final relate to the sale of the units on the map and the final sale and foreclosure. He noted other advantages of the law is the presence of government authority oversees the implementation of pointing out that the implementation will be through land and real estate sector in all the municipalities of the Emirate in the department will oversee the process fully, and the department confirmed that all necessary for the application of this law, electronic systems available fully been tested will be uniform across the emirate, will also be issued a uniform guide to all the new services that Seffersha law in addition to the current guide services, while underwent all staff involved in the different municipalities of the specialized training courses in law.