Dubai has issued a law making it compulsory for developers to register their properties with the Dubai Lands Department.
The 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.
The Dubai Land Department received numerous complaints regarding the ownership of various property developments while many of them were not even registered. The new regulation to eliminate such anomalies in the system.
The new law with 15 articles makes it mandatory for property developers to register their sold properties on the registry, and will invalidate any transactions on unregistered properties.
In general the new law aims to help regulate the emirate’s booming real estate sector and boost investor confidence in the property market in the long term. It stands as a proof of ownership in the event of any dispute between developers and master developers.
The law gives developers a 60-day grace period to register any transactions carried out before the issuance of law.
Also gives buyers a 30-day grace period to register their purchased properties.