New regulations recently implemented by the Dubai's Real Estate Regulatory Agency (RERA) in order to prevent speculative activities in the market, are aiming to secure healthier and more stable growth. Law No.13 of 2008 aims to regulate off-plan sales, and mandates registration with the land department.
An updated mortgage law states that all mortgage contracts should be registered with the land department, specifying the size of loan, the repayment period, and the value of property to which the loan is linked.
The latest new law bans property development companies from implementing their projects or selling their properties on the drawing board before actually owning the land on which the projects are to be built.
In the mean time major developers such as Aldar and Emaar stated that they will insist payment of a minimum of 20 to 30 percent of the property value prior to transferring to a second buyer under a resale transaction and impose new rules on resales. Emaar Properties has become the first developer to open a special desk at the Dubai Land Department office in Deira to facilitate ease of transaction for Emaar's customers.
