By Courtney Trenwith
New unified contracts outline roles of sellers, buyers, brokers in bid to promote confidence in market & avoid misinterpretation
Unified property contracts in Dubai will become mandatory from May 1 in a bid to clarify the roles of buyers, sellers and brokers.
The new contracts are expected to speed up property transactions, also make it easier for sales to be conducted without using an agent and promote confidence in the market.
Dubai Land Department director general Sultan Butti bin Mejren said the new agreements would make it easier to police property contracts, limit misinterpretation among parties and reduce the ability of bogus brokers to operate.
Standardised property contracts were first released by the department in 2008 but they are not mandatory.
“The new agreements will also help us to rid of some of the problems that may occur because of a lack of clarity," he said.
"Having unified contracts between the parties not only avoids the misunderstanding and misinterpretation of articles that could previously have occurred, it also guarantees the rights of all the stakeholders involved.
"This important new document contributes to the enhancement of the competitiveness of the real estate market in Dubai and moves it to a new phase of leadership and excellence by establishing the principles of transparency and professional standards.
“It will be of great value in assisting us to keep pace with the real estate boom currently taking place in Dubai and will promote confidence in the market generally.”
The emirate’s property market has been somewhat tarnished by the 2009-10 bust that saw prices plummet up to 60 percent.
Values have significantly risen in the past year, with analysts recording more than 20 percent growth in 2013.
Real estate consultant JLL predicted in February the growth would continue this year, with sale prices up 10-15 percent and rents by about 10-20 percent.
The Dubai government has announced several new initiatives to help contain price growth at a stable level, while trying to avoid another bubble.
The unified real estate contracts will be accessed via the Dubai government E-mart website, where models are presently available.
They include three types: a contract between seller and buyer, a contract between seller and broker and a contract between buyer and broker. They become formal after they are recorded at the department.
Very useful information on bubble Roll