Only one working week is left for property owners to complete their real estate registration with the Dubai Land Department (DLD). Many of the largest Dubai developers have started reminding landlords to complete the administrative work by October 30, 2015, because otherwise they could face penalties.
As mandated by the DLD, it is required all sold units to be registered before October 30 and failure to comply will attract action and fines. In the event of non-compliance, developers will not be responsible for any action or penalties that are likely to be implemented by the DLD.
DLD had implemented a new regulation earlier in 2015 that ensured all registration charges of 4 per cent were payable upfront by the end user against their respective units instead of the earlier provision of payment on completion. The initial deadline was set as June 30, 2015, but it was extended by six months.
It is not clear whether the deadline will be extended again, but it is possible.
DLD is expected to apply the laws and regulations of Executive Council Resolution No. 30 of year 2013 in the case of violators.
Article (6) of the resolution states: “Without prejudice to any severer penalty provided for by any other law, anyone who commits any of the acts stipulated in Article (5) of this resolution shall be fined with double the prescribed fees.”
Article (5) states: “Following actions shall be deemed as fees evasion: providing false data about the value of the real estate transaction; using any trick or way of whatever kind or nature to evade the payment of fees and doing any other act that would evade the payment of fees.”
Though DLD has ruled out doubling of property registration fee as penalty, owners who miss the deadline, would have to pay double the current registration fee (8 per cent of the property registration fee).