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New law set to crackdown on off-plan sales

A new law has been introduced to ensure all off-plan property sales in Dubai have to be registered with the emirate's Land Department.

The regulation will also stop developers from being allowed to charge transfer fees on such sales, it has been announced.
"Law No 13 of 2008 is aimed at regulating off-plan sales and making registration compulsory with the Land Department," Emad Eldin Farouq, Senior Legal Advisor, Land Department, told Emirates Business on Monday.

Off-plan sales refer to the practice of marketing housing or commercial units based on an architectural plan of the property before the structure is built.

Any sale or other disposition that transfers or restricts title shall be void if not registered in the interim real estate register, the new law stipulates.

Any developer who makes a sale or other disposition before the law comes into effect must register it within 60 days.

The law also states that master developers and sub-developers will no longer be allowed to charge transfer fees on off-plan sales. However, they will be allowed to accept administrative charges after approval by the Land Department.

Last week, Dubai issued a new mortgage law that stipulates that mortgage contracts be registered with the Land Department, specifying the size of the loan, the repayment period and the value of the property to which the loan is linked.

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