REAL ESTATE articles 2007 - What you
have to know -
1.
Buying property in
2.
UAE property FAQ''s - all you wanted to know
3.
Freehold query, according to the Law
4.
The New
5.
The New
6.
The New
7.
The New
8.
How
9.
Why is
10. Ten reasons
11. Dubai Property, the
future of tall towers
12. Dubai real estate, the
true definition
13. Your future with
14. How long will
15. When does
Buying property in
Wednesday, March 7 - 2007
Overseas investors have been permitted to purchase
property in
UAE Dirham
Linked to the USD, living costs are reasonably high for the region but
compared to
Economic Climate
Taxes
There are no income or property related taxes
although there are fees for residence visa renewal of US $1,360 every 3 years
which does not permit the holder to work. The property ownership legislation is
still underway.
Popular Areas to Buy into
The projects in vogue are The Springs, The Greens, Dubai
Marina project, Emirates Hills, Meadows and Arabian Ranches. Two man made
islands, the Palm will become the ultimate luxury address.
Price ranges
Apartment sales exceeded 1,500 in 2002.
Overseas Investors
Overseas Investors may purchase property freehold on specific
developments as well as on a 99 year leasehold basis.
Service Fee
There are no taxes. The contract is signed followed by a down payment of
10%, and usually two further payments of 10% to an agreed timetable.
Mortgages
Mortgages are becoming more freely available on a 10 to 15 year basis
and interest rates are linked to those in the
TIPS FOR BUYING IN
KNOW YOUR MARKET
The property market like any other market is driven and underpinned by
the realties of supply and demand. The residential property market in
Applying this equation in the context of
RISK VS REWARD
In essence, it is the case that the greater the risk in a venture,
usually the greater the reward. The
IMPORTANT CONSIDERATIONS
Before deciding to buy property in
1. Can u afford it? More importantly
are you prepared for the property to go down in value as well as up? Property
is just like any other investment and can fluctuate according to overall
market. How long you are going to hold the property will determine whether you
can be sure it will make money or not.
2. Can u afford it if the interest
payments change? Lenders can alter the interest rate or the term
potentially and this could have an impact on your monthly payments. Although
interest rates are at a 40-year low internationally, be aware that they can arise.
Check if you can pay off the loan early and if there are any penalties in doing
so. Can you change lenders at a later stage? What currency do you require?
3. Can you afford the transaction
costs? Typically local lenders are charging 1% of the loan amount as a
processing fee, not to mention the insurance element and booking costs too.
Have you budgeted for legal, protection and any other conveyance type cost?
Shop around and you may find more competitive fees.
4. What is the ongoing maintenance
cost of your property and the communal areas-are they due to rise? If so by what amount? Who controls the rise in the
maintenance fees-the developer or the residents? How much is your car
parking/marina berth.
5. Do you need to purchase through
an offshore company or Trust? In the absence of a property law in
6. Have you sought professional help
with protecting the property should a serious event occur? Life Cover,
Income Protection, Critical Illness Cover, Permanent and Total Disability in
their various forms should be reviewed and budgeted for. Shop around too since
some companies will pay your processing costs.
7. Does the developer allow you to
sell the property when you like to whomever you like? Perhaps you
cannot sell until the project is complete which will preclude any profit taking
if you are looking to flip your property back into the selling market rapidly.
8. What guarantees does the
developer offer with regards to the quality of finish, settlement
cracks and utility integrity?
One must seek the professional services of a reputed realtor, take
guidance from a lawyer if required and finally secure sound financial advice
from an independent source so the various pitfalls to buying property and
financings are discussed in full.
UAE property FAQ''s - all
you wanted to know
Wednesday, March 7 - 2007
What does freehold ownership mean?
The owner of a freehold title of real estate enjoys the most superior
form of private ownership. A freeholder is considered to be the absolute owner
of the land and buildings comprised in his title; he has the right to occupy,
use and enjoy his property forever ("in perpetuity") or until he
transfers the title to a new owner, and his heirs are entitled to inherit his
title upon his death. Nevertheless, a freeholder does not have total freedom to
do what he wishes on his land.
What are the restrictions or
external curtailments on freehold ownership?
The most obvious form of external curtailments are the public controls-
a freeholder must comply with all applicable government laws which combine to
control the use of and activities upon his property.
The second form of external curtailment is of a more private nature and
consists of restrictions placed upon the freehold title. For instance,
neighbours may enjoy rights of way over pathways crossing the freeholder''s land. The rights that others enjoy over
privately owned property are owned as "easements".
A further form of title restriction is the "covenant". A covenant may
be an obligation to do something, such as an obligation to keep the buildings
on the land in good condition or an obligation to make a financial contribution
to some shared facility such as a car park etc.
Does one have to be physically present
in
It is possible for the prospective buyer to give Power of Attorney to a
person to handle all the aspects of the purchase on their behalf. It is not necessary
that one has to be present in
Which realtor should I use?
Choose a realtor who has time to run through all the developments on
their books, has an overall understanding of the Dubai market, a local office,
knowledge of the legal framework, concise brochures, models and floor plans,
details of the contract as well as schedule of payment terms. It is beneficial
to have a look at all the developments in
Can I put the property in my Will?
Yes, but if you are looking to ensure the property passes directly to
your spouse, be aware that wills are not recognized under local Shariah Law. It might be worth considering some form of
offshore structure to purchase the property so that it passes within your
estate encumbered.
Is there any Capital Gains Tax on
the sale of the property?
Not yet.
What is an offshore company?
An offshore company is a business entity that is formulated in a low tax
or tax jurisdiction for the purposes of legally minimizing any type of tax
payment and improving your wealth management. "A wealth
management tool that can be utilized by anyone legally and legitimately."
Why open an offshore company?
Primarily one would open an offshore company to gain confidentiality
over their financial affairs and grow wealth without intrusion. Offshore
companies can eliminate or minimize many types of tax payments such as: Capital
Gain Tax, Death Duty, profits on business earnings and property sales. An
offshore company legitimately assists you in gaining confidentiality over your
financial affairs and growing your wealth.
What do I get with my Dubai Offshore
Company?
In terms of structure you will receive the following from First
Offshore:
A registered Agent-A company cannot be formed without one.
A registered virtual office from which your Offshore
Company trades from.
A full corporate and personal bank account with a local
(non-exchange) bank. Products such as "Gold Cards" and debit
cards can be arranged.
Can I buy using an offshore company?
This is certainly possible, and using a
Can a property be owned by an
offshore company?
Yes. It is not uncommon that offshore companies are used as
property-owning vehicles for property in
If I own the property in my own
name, what happens to that property upon my death?
When buying in Dubai, in the event if death, the property does not
necessarily pass to the wife since the Sharia Law
(the governing law of UAE) determines otherwise, as laid down in the Quran. In
order to ensure the property passes on to those you wish, an offshore company
can be established with the spouses as Directors. In the event of their demise
the shares of company are passed on to the surviving spouse and beneficiaries.
Although the spouse has died, the offshore company has not; thereby an internal
transfer of shares circumvents this potential Sharia
hiccup.
Can I get finance in the UAE?
Yes if you are a resident, but terms differ between the limited numbers
of local lenders. However finance can be arranged through overseas lenders if
you have assets overseas too. Many property investors with assets overseas
(property, income, investments) have taken advantage of favorable
international interest rates. For example, someone with property in
What banks in the UAE are currently
offering loan on properties bought off-plan?
The banks currently offering loans are HSBC, Amlak,
Dubai Islamic Bank, Rak Bank, Mashreq
Bank and Tamweel.
Do I need insurance for my Mortgage?
Most lenders (banks and building societies) will require some form of
protection for the loan. This makes sense since you want your property paid off
in the event of your death or diagnose of a serious/terminal illness. Banks on
the hole do not like repossessing property and would prefer the loan to be
repaid from an insurance policy should a serious event occur. Seeking the right
insurance is important since it comes in many forms. Whole of Life, term and
Endowment policies are all widely available in the UAE. Get advice on how to
determine which one is right for you. Similarly, it pays to use a broker since
they normally secure terms well below that which is offered directly by most
banks.
What are the opportunities for
rental yield and capital growth?
In the rental market, there are issues of over-supply, and as far as
capital appreciation is concerned, there is concern over build-quality and
built-duration. Neither of these considerations should be over-looked when
considering the investment potential. Certainly, at the flagship Palm Jumeirah development there is a healthy re-sale market
achieving massive premiums of up to 800%. This is not representative of the
Freehold query, according to the Law
Wednesday, March 7 - 2007
The booming real estate market of
Freehold properties are attracting a large share of foreign ownership
due to increased opportunities and quick returns on investments. Rental yields
are expected to remain at high level as the freehold properties being offered
are very unique on a worldwide scale and will continue to attract investors.
Investing in
Whether you are looking for a holiday home, residence, retirement
property, or an investment,
Should I hire a lawyer for my real
estate needs?
Yes. It may well be advised for prospective real estate buyers and
investors to consult a real estate lawyer regarding his real estate needs. A
real estate lawyer does not only analyze, prepare, review and negotiate
necessary documents but also provides legal services in all aspects of the
acquisition and sale process on properties located throughout the UAE.Real estate lawyers can protect you from costly and
irreversible errors, both in documentations and practice, errors in the figures
and other related problems that could lead to disputes or other expensive legal
action.
What is ''freehold ownership''
system?
Freehold means the subject property is placed 100% in the buyer''s name for life, and upon satisfying the full
payment thereof, shall have the right to sell, lease or rent the property to a
third person. A freeholder is considered to be the absolute owner of the land
and buildings comprised in the title. Consequently, the buyer has the right to
occupy, use and enjoy the property forever ( ''in
perpetuity'') and the buyer''s heirs are entitled to
inherit the title upon his / her death.
How does the freehold system work?
Since there is yet no specific federal law dealing with the issue of freehold
ownership, the transaction must be entered in the form of a contract or
agreement called ''Property Sale Agreement'' by and between the buyer and the
property developer. The Agreement grants the investor a contractual right ( short of ownership) over the property.
This Agreement defines the freehold nature of the property and confirms
the sole responsibility of the developer to procure the registration of the buyer''s title with the Dubai Lands Department. This
likewise contains all the terms and conditions that binds the parties such as
but not limited to payments, construction schedules, and the rights and
privileges of the buyer and the developer.
What are the requirements and how
much are the fees and charges?
When you buy a property in
There is no hard and fast rule in complying with the requirements in the
freehold ownership system especially for the locals. But in the case of
expatriates, the only thing that is very important aside from your money is
your visa and passport. Property owners and their immediate family will obtain
renewable visas, which can cost AED 5,000 per person.
The Purchase Sales Agreement ( Contract )
stipulates that you will be entitled to receive a Residence Visa for as long as
you own the property. In accordance with the normal Immigration laws in the
UAE, your Residence Visa will be renewable every three years.
There are standard fees and charges to be incurred in the process
including government fees which are expressly stipulated in the agreement.
Aside from the standard fees and charges, others may be imposed such as Real
estate agent fees and legal fees.
What do the Service Charges from the
Developer''s perspective relate to and will they
increase?
In most developments there is a service charge payable after completion.
These are only payable in relation to common areas such as parks within the
Development - as well as for road maintenance. Clearly, as the cost of
maintenance increases, then so will the charges but few anticipate huge increases. The maintenance of your own property and grounds
is entirely separate - as you would expect with freehold property ownership.
What is the assurance that the
freehold property owned is not illegal?
The execution of a valid Property Sale Agreement secures and protects
the rights of the buyer over the property. It is binding between the parties
and enforceable before any courts of
What will happen if the buyer fails
to pay the installments? Will the buyer lose what He
had already invested? Or can the buyer transfer the deeds to another person who
will pay the principal amount already invested?
In the event the investor is unable to pay the monthly installment, he will not be able to withdraw from the
agreement unless he finds a third party who is willing to assume the investor''s obligations under the agreement.
In Principle, neither Emaar nor the Palm will
object to the transfer of rights in the agreement to a third party. However,
this transfer is conditional. Usually, the developer will only allow the
transfer if the original investor of the property has fully paid 30% of the
sale consideration. Some developers like The Palm charge additional fees on the
transfer. As for Emaar, the transfer of the property
in their
Therefore, buyers can''t get hold of the deeds
until after the property has been completed. If, however, the buyer wishes to
re-sell, transfer or assign the property before it is built or any time up to
completion, then all he needs is the original contract with the developer.
Can the buyer register the property
in his name? If not, how safe would the investment be?
Yes, the Government of Dubai is now in the process of issuing a new
property law and is expected to be released soon, which will allow the
investors or expatriates to register the property with the Lands and Property
Department in
What title will I be receiving with
my property?
When the first tranche of properties came onto
the market for sale, they were classified as leasehold. Most of these
properties are now freehold.
Can I get financing for the purchase
of my property?
Yes, there are various banks offering financing for properties, and they
would be able to advise on the procedures to get
financing.
Will I be able to sell my property?
Yes. But at present any transfer of ownership must be done thru and with
the approval of the developer and an administrative charge is made by the
developer for the transaction.
Are there any taxation issues a
foreign buyer of property in
The only tax payable on the transfer of property into the name of the
new owner is a fee payable to the Land Department. The Department usually
collects 0.5% of the purchase price from the Seller and 1.5% of the purchase
price from the purchaser.
Will I be able to change any of the
specifications on the property prior to completion?
This is extremely rare. On certain developments purchasers are able to
choose finishings on items such as cupboards and
worktops in the kitchen and tiling on the floors. Any upgrading would
ordinarily be done after completion, in the same way as one might do anywhere
else in the world. Developers tend to buy in bulk: thus keeping construction
costs down, and enabling them to budget accordingly.
The New
Wednesday, March 7 - 2007
The long awaited ''Property Law for Dubai'' has now been passed and has
been met with a great deal of interest and excitement amongst everybody
involved in the real estate sector in Dubai - developers, investors, lawyers,
bankers and brokers.
We can trace the roots of the property boom in
Since 2002, several projects have been launched and sold to foreigners.
These projects include Dubai Marina, Emirates Hills,
The question now on everybody''s mind is
whether this new Law provides legal confirmation of a foreign investor''s right to own property in these projects and
secure registration of their title at the Dubai Land Department. Will the
confidence and patience of these investors be rewarded and will it instill confidence in the many more circumspect investors
waiting in the wings for a robust Property Law before they decide to invest?
In this first part of four articles, we examine what the new Law
achieves and we discuss in further detail some of the provisions of the new
Law.
Force and
effect of Law No. (7) of 2006:
Law
No. (7) Of 2006 concerning Real Property Registration in the Emirate of Dubai
was signed by Sheikh Mohammed on
Ownership by UAE and GCC Nationals
According
to Article 4 of the Law, both UAE and GCC nationals have
the right to own real property in
To explain more fully a couple of
the above concepts:
The ''right of usufruct'' is a concept that is found in our Federal
Civil Code. It is the right to use and exploit property belonging to another
person. It is a ''right in rem'', in other words, it
is a real property right. A lease is very similar. It also grants the right to
use and exploit property belonging to another person. But according to our
Civil Code, a tenant does not acquire a property right through a Lease; he just
acquires a personal right, a right that is enforceable through a contract
between himself and the landlord. The distinction between the ''right of
usufruct'' and a leasehold right is important in the context of foreigners''
property rights in
The ''right of mustaha'' is similar to the
''right of usufruct'' it is the right to use and exploit land belonging to
another person but it is more than this. It is the right to build on the land
belonging to another person. It is the right that we commonly see granted to
the tenant through a ''Ground Development Lease''?.
UAE & GCC nationals can own property rights in all areas of
Ownership by Nationalities other
than UAE or GCC Nationals
According to Article 4 of the new Law, all nationalities other than UAE or GCC
nationals can own freehold title, a 99-year Lease or a Usufruct right in
specific areas of Dubai, as determined by the Ruler''s
approval. The concept ''freehold'' is a generally well understood concept. In
summary, it is the most superior form of private property ownership. A freeholder
is considered to be the absolute owner of the land and buildings comprised in
his title. He has the right to occupy, use and enjoy his property forever in
perpetuity or until he transfers his title to a new owner, and his heirs are entitled to inherit his title upon his death. As regards
leasehold and usufruct rights, the new Law provides that the right shall not
exceed 99 years. From our discussions with the Land Department, we understand
that the minimum term is 10 years, i.e. that a lease or usufruct right for a
term of between 10 to 99 years can be registered at the Land Department. This
is to be confirmed by the Land Department in the Rules that it is authorized to
publish pursuant to the new Law. All of the above is subject to the property in
question being located in one of the specific areas of
What will be the status of long
leases executed by foreigners in areas that have not been approved by the
Ruler?
Long leases are being sold to foreigners in projects all across
= > Unregistered leases remain personal rights, not rights in rem or property rights
= > Unregistered leases are still capable of being inherited
= > Disputes arising between a landlord and a tenant of an unregistered long
lease will still be adjudicated by the Rents Committee.
In the second part on the new Property Law, the topics discussed will be:
Registration at the Land Department
Void Transactions
How does a Person prove his Ownership of a Property?
How does one inspect the Property Register?
The New
Wednesday, March 7 - 2007
As continuation of our previous article, the topics under discussion in
this article are:
Registration at the Land Department, Void Transactions, How a person can
prove his Ownership of a Property and How one can inspect the Property
Register.
Registration at the Land Department
Article 6 of the new Law provides that the Land Department ''shall solely, to
the exclusion of others, be authorized to register the Real Property Rights and
long terms leases as provided under Article 4''?. In
other words, if this new Law allows for a property right to be registered by a
purchaser, the only place that it can be registered so as to be recognized, is
at the Land Department. Any register or other type of database maintained by a
developer is not recognized under this Law. This is not to say that the
registers that have been maintained internally by developers have no purpose.
Up until now, they have served as a very valuable tool to record property sales
and they will continue to be a useful internal administrative tool. However,
once we have the Ruler''s approval, the formal
process of the Land Department registrations of property in permitted areas can
begin. Where property purchases have been completed and physical handover has
taken place, the developers'' internal registrations will be replaced by formal
registrations in the Land Department. However, in those cases where property is
still under construction, developers will no doubt continue to maintain their
own internal registers to record
Article 7 of the new Law provides that ''A Real Property Register shall
be established at the Lands Department''?. Infact, the Real Property Register is already established
and has been for many years. It now needs to become more sophisticated and
detailed, but that process is well under way. What this Law does is bring the
current Register under the ambit of the new Law and capable of being maintained
in accordance with the new Law and the Rules that the Land Department issues pursuant
to it.
Article 7 further provides that ''All Real Property Rights and any
amendments thereon shall be registered in the Register, which shall have
absolute power of evidence against all parties''?.
Article 9 of the Law provides ''All dispositions that may create,
transfer, vary or terminate a Real Property Right and all final judgments
confirming any such dispositions shall be registered in the Real Property
Register. Such dispositions shall not be valid unless they are registered in
the Real Property Register''?. Therefore, if your
right of ownership is capable of registration, register it otherwise it will
not be recognized. The
Property Register maintained by the Land Department is conclusive evidence of
the existence of all rights of ownership pertaining to a property. An owner may
have a contractual right to pursue, but he will not have an ownership right to
exert unless it is registered.
Void Transactions
Article 26 (1) of the new Law provides that ''Any agreement or disposal made in
violation to the provisions of this Law or with the intent to circumvent its
provisions shall be null and void''?.
Article 26 (2) gives any interested third party, the Land Department and
the Public Prosecution the right to request the court to declare such a
transaction void. This is aimed at the so called ''˜sham arrangements''. This
provision is not saying, for example, that long leases granted to foreigners in
areas that do not have specific Ruler''s approval are
illegal''“they are not, as they give only personal or
contractual rights to a tenant. What this provision is aimed at are those
agreements that purport to give a property ownership right to someone who is
not entitled to own it and is not entitled to register it. What would be void,
for example, is a Sale & Purchase Agreement for the sale of a freehold
right in favour of a foreigner in respect of a property in Deira,
as foreigners do not have the right to own freehold property in Deira. That is an obvious example.
A more subtle example might be the ''˜nominee ownership'' type
arrangements that we sometimes see, where a foreigner
who wishes to own property will reach an arrangement with a UAE national,
wherein the UAE national will hold title to the property at the Land
Department, but for all intents and purpose the foreigner considers himself to
be the property owner. The best advice to any foreigner wishing to ''˜own''
property in a location which is not approved for foreign ownership,
is to take a long lease of the property. Whilst the lease cannot be registered,
the foreigner would at least have contractual rights pursuant to the lease
which can be enforced and the lease arrangement is not illegal or invalid.
How does a Person prove his
Ownership of a Property?
Pursuant
to Article 5 of the new Law, ''The original documents and judgments under which
registrations are made shall be maintained at the Lands Department, and
removing them outside the Department is prohibited''?.
Article 22 of the Law provides that ''The Department shall issue title deeds of
Real Property Rights in accordance with the current records in the Real
Property Register''?.
Article 24 of the new Law provides that ''Title deeds referred to under
Article 22 of this Law shall have absolute power of evidence to establish Real
Property Rights''?. Therefore, the above three
Articles provide that if a purchaser considers that he is the owner of a
property, the contract or other agreement by which he acquires that ownership
is insufficient to prove it. The purchaser needs to take the contract to the
Land Department and apply for ownership to be registered in his name. If the
application is in order, the Land Department will register his ownership in the
Property Register and issue him with a Title Certificate. That is the document
which proves his ownership.
If Title Certificates are conclusive evidence of property ownership,
what if they have been issued incorrectly or contain incorrect information?
Article 7 of the Law allows objections to the data recorded in the Property
Register ''on the grounds of fraud or forgery''?. And
Article 13 authorizes the Land Department to correct errors in the Property
Register on its own initiative or at the request of an interested party. In
conclusion, it is the Property Register itself at any point in time that is the
conclusive source of information regarding property rights, and the Title
Certificates contain a mirror record of that information as of the date that
they are issued. If some time has passed since a Title Certificate was issued,
and a party wishes to rely on the information that it contains, he should go to
the Land Department and check it against the Property Register. The information
may have changed since the Title Certificate was issued, perhaps because the
Land Department has rectified the Register pursuant to Article 7 or Article 13.
Or maybe subsequent entries have been made in the Property Register without the
co-operation of the title holder, and therefore without amendment to his Title
Certificate, for example, some form of third party interest or a court
judgment.
How does one inspect the Property
Register?
Provided
that you can demonstrate to the Land Department that you have a legitimate
reason for enquiry, Article 5 of the new Law allows a third party to inspect a
Property Register and to obtain a certified copy of it. Thus a potential
purchaser of a property, for example, will be able to make his own enquiries
directly with the Land Department and verify for himself who the owner of the
property is and what third party rights the property is subject to.
In the third continuation on the new Property Law, the topics discussed
will include:
Common hold Registration (Multi-Owned Buildings)
Registration of Third Party Interests
Practical Issues on Registration
Dealing with Property Disputes
The New
Wednesday, March 7 - 2007
In the third continuation on the new Property Law, the topics discussed
will include:
Common hold Registration (Multi-Owned Buildings), Registration of Third
Party Interests, Practical Issues on Registration, Dealing with Property
Disputes
Common hold Registration
(Multi-Owned Buildings)
There is only one Article in the new Law that deals with the registration of
individual apartments and offices in a multi-storey building. The reason for
this is that the Land Department is working on a new Strata Law which will be
issued within the coming few weeks and will fully deal with issues such as
ownership and management of the common areas in the building, co-owner''s associations, rules of occupancy and so on. In the
meantime, dealing very narrowly with the issue of title registration in these
multi-owned buildings, we have Article 23 of the Law which provides, ''Subject
to the provisions of any other law, a multi floor or apartment real property
shall be considered as a single Real Property Unit and a folio shall be
designated thereto in the Real Property Register. Supplementary folios in the
names of the owners of such apartments and floors and common areas shall be
added to the original folio''?. Our understanding of
how this will work is that the Land Department will open a main register for
the building itself, and within this main register there will be a sub-register
for each apartment or office. The owner of an apartment or office will be registered
as owning the freehold interest in his unit together with an undivided share in
the common areas of the building calculated in accordance with his
participation quota. Thirty party interests affecting his title will be
registered on the sub-register maintained for his unit and he will be issued
with a Title certificate evidencing his ownership.
Registration of Third Party
Interests
Article 24(2) of the new Law provides that, ''Any conditions, undertakings,
encumbrances or any other liabilities related to Real Property Rights shall be
stated in the designated folio of the Real Property Unit''?.
Third Parties may claim an interest in a property for any number of reasons. A
bank may wish to register a mortgage as security for a loan that it has granted
to the property owner. A neighbor might have a right
of way or other easement over the property. The property owner may have made
certain promises, or covenants, in relation to the use of his property, for
example to use it as a residence only or to pay a service charge for certain
facilities that the property owner is entitled to use. These types of third
party rights can and should be registered on a property title. They then become
binding on the property itself, and not just a personal obligation of the
property owner. Anybody to whom the property is transferred will be subject to
the third party interest if it is registered. Without registration, the third
party interest is enforceable only against the original owner personally
through a claim for breach of contract.
Many of the new private communities that we see in
Practical Issues on Registration
Whilst we have been waiting for the enactment of the
Law, developers have in the meantime completed and handed over several thousand
villas and apartments to their new owners. These owners will want to secure
registration of their title at the Land department as soon as possible.
Likewise, mortgage companies will want to register their mortgages. We still
await publication of this Law as well as Sheikh Mohammad''s
approval of the specific areas in which foreigners can own freehold title. Once
we have those, the process of registration can begin. We understand that the
Land Department will be opening a branch shortly in the Al Barsha
area of
Over and above this, purchasers will be asked to sign the Land Department''s standard transfer form. Reference is made in
Article 6 to the Land Department having its own ''˜standard contracts''. These
are not documents that will replace or contradict the
Dealing with Property Disputes
According
to Article 10 of the new Law, ''The liability for breaching an undertaking to
transfer any Real Property Right shall be limited to payment of indemnity,
whether or not such undertaking provides for an indemnity''?.
Therefore if a seller defaults in his obligations in a Sale & Purchase
Agreement and fails to transfer the property to the purchaser, the purchaser
can claim damages from the seller for his losses suffered, but cannot force the
seller to transfer the property to him. In other words, specific performance is
not available as a remedy. The question arises as to which forum should be
utilized for settling disputes arising under this Law? Article 27 of the Law
specifically repeals a Decree dated
In the fourth and final continuation on the new Property Law, the topics
discussed will be:
Unregistered long leases
The New
Wednesday, March 7 - 2007
In the fourth and final continuation on the new Property Law, the topics
discussed will be:
Unregistered long leases
Unregistered long leases
As mentioned earlier, as these fall outside the
ambit of this new Law, the Rents Committee will retain jurisdiction over any
disputes arising between these landlords and tenants. Other Land Department
Functions Article 6, point 7, requires the Land Department to ''lay down the
rules in connection with the evaluation of Real Properties''?.
Apparently, the Land Department intends to employ its own expert valuers. The role of these valuers
will be two-fold. Firstly, the Land Department''s valuers will be asked to verify a property value in cases
where the parties to a transaction have apparently undervalued the property for
any reason. This is so that the applicable registration fee can be properly
assessed. Secondly, where a prospective purchaser of a property requires a
valuation, he will have the option of commissioning this valuation from the
Land Department in return for a fee.
In due course, the Land Department will look to establish a register of
approved external valuers who can also provide this
valuation service. Article 6, point 6 requires the Land Department to ''lay
down rules in connection with regulating and maintaining a register for real
estate brokers''?. Our understanding here is that real
estate brokers will still need to obtain their Trade Licences from the Dubai
Department of Economic Development, but as an additional requirement, if they
wish to be involved in the sale and purchase of property, they will need to
also register themselves with the Land Department. The specifics are still
being considered by the Land Department, but it is anticipated that certain
criteria will need to be met by a broker as a condition of his registration and
that a mandatory Code of Ethics will be imposed upon all brokers dealing in the
sale and purchase of property. Breach of this Code of Ethics by a broker will
potentially lead to him being struck off the register and therefore unable to
lawfully continue his business. Inheritance Article 11 of the new Law provides
that ''Any Inheritance Declaration shall be registered in the Real Property
Register if the inheritance includes Real Property Rights. No dispositions by
any heir in connection with any such rights shall be valid or effective against
third parties unless such dispositions are registered in the Real Property
Register''?.
This Article is referring to the process here in
However, a new Federal Law was passed at the end of 2005, the Personal
Affairs Law (No. 28 of 2005). Whilst it is not entirely clear, it would seem
that as a result of the new Personal Affairs Law, a foreigner can opt for the
Laws of his own domicile to apply on the question of inheritance of his
property. The Land Department, we believe, supports this view and it is
expected that guidelines will be issued by the Land Department to confirm the
situation in due course. In conclusion, In reply to the question on whether
this new Law provides legal confirmation of a foreign investor''s
right to own property in these projects, secure registration of his title at
the Land Department and enforce the owners freehold property rights in Dubai,
we believe that this Law does provide the appropriate legal framework that we
have been waiting for. However, as this Law itself acknowledges, it is just a
starting point and more regulation and legislation is required to meet the
needs If a market that is rapidly growing in both size and complexity. In time,
this Law will be supplemented by Rules issued by the Land Department related to
administrative procedures and property related matters and other land laws,
such as the Strata Law, will be issued.
How
Thursday, March 8 - 2007
Today many investors would argue that
modern planned expansions of high-rate of return areas such as
Rising demand in certain markets ensures
constant luxury or other types of development has made the speculative investor
much more conservative with respect to the real estate development trust or
fund offering.
Today’s real estate animals are restive.
Just as institutional lenders have become accustomed to the profit returns such
projects can deliver, the market has been sapped of strength. The quieted real
estate home sale boom in
Only in a place such as
But a new star has fallen from the sky,
in the East.
But in
Even when a market has no more resources
to expand to its production possibilities frontier, no more land,
it answers the demand by growing out to sea and upward to the skies. Any
product that has demand that constant must encourage fiscal growth.
Written by Page Howe. Page Howe bears no affliation with Dubai
Select. The views expressed are purely his own.
Source :Dubaiselect.com
Why is
Thursday, March 8 - 2007
Previously only those with access to
foreign group investment funds or corporations could get in on the foreign
investment opportunities in this area. In August 0f 2006, the ruler of
Foreigners, it is said, can now invest
and seek capital investment participation in the burgeoning high altitude
property market in
It was announced by Sheikh Mohammed bin
Rashid Al Maktoum that the laws would be changed to
allow international participation in the lightning growth of
Now the international community can
share in the rise of the
Using a Real Estate Investment Trusts,
commonly called REITs, investors are able to pool
their funds to buy property in a sort of planned use capital investment mutual
fund allowed for fixed use facilities., a form of purchase gaining favor in many of the world’s leading property markets, and
available in a variety of international markets by 2007.
REITs will provide a significant new financial wealth growing instrument to
the property market, not only in
With no personal corporate or sales
taxes, foreign direct investment has expanded strongly and high-rise supertower projects have become synonymous with
Within the residential property
development sector it has been hotels and clusters of resort and luxury residence
communities that have been a major linchpin in
For many reading history, it does not
need a profit margin or prospectus to see that the playing field of
Written by Page Howe. Page Howe bears no affliation with Dubai
Select. The views expressed are purely his own.
source : Dubaiselect.com
Ten reasons
Thursday, March 8 - 2007
Heretofore only residences such as those
in
But the fantasy realms glimpsed in
future science fiction or literary dreams made cinematic reality can barely
approach the awe-inspiring setting of what the gods have drawn from the sea in
Dubai: Nothing less a project than the World has sprung from the water on the
shores of that desert province.
The World in
The World is hardly a drop in the ocean,
however. One of the world’s most beautiful hotels, the Burj-al -Arab, floats nearby like a graceful Olympian ship
sailing the wine dark seas. Words cannot describe the impact of this
structure, which blends into the seascape as if it were merely a ship anchored
offshore.
Rising from the formerly lateral coast
of sand and water, this Dubai topography is newly awash in shiny towers of
landmark design has been admired globally as one of the most photographed new
silhouettes in modern architecture.
But the Burj-al-Arab
is not alone. Many landmark towers have recently grown up into the salt air
sky. The
Fit for a Caliph, the hotels boast
sumptuous interiors that would suit a Sultan. Far from the cheesy, Westernized
concepts the luxury traveler has seen too many times
to count, these hotels have eye-widening brilliant schemes of interior
decoration that make the visitor’s experience at once memorable and
unforgettable.
Written by Page Howe. Page Howe bears no affliation with Dubai
Select. The views expressed are purely his own.
source : Dubaiselect.com
Dubai Property, the future of tall towers
Thursday, March 8 - 2007
The hills of the sloping shores of
Those returning to the region from a few
years’ absence drop their jaws. This is not the sleepy city by the sea anymore.
Homo Sapiens
have always measured their achievements by their cities. By
their magnificent monuments, temples, boulevards, and residences.
Structures such as those found in
A city made of tall towers rivals the
ambition of
Written by Page Howe. Page Howe bears no affliation with Dubai
Select. The views expressed are purely his own.
source : Dubaiselect.com
Dubai real estate, the true definition
Thursday, March 8 - 2007
Is it possible to oversell
Words almost fail to convey the true
definition of
Fantasy living becomes real in the city
of
Go skiing in the desert. Monorail home to your private beach. Boat
into the hotelscape for an evening’s nightlife.
Host your friend’s yacht or shop with visitors in the world-class malls. Wake
up to resort style living every day.
The dream home for many cannot be built
in the modern era, except in
Can a home anywhere else ever be as
sweet? The oasis of luxury in
GPS systems for
navigation of three world class marinas as well as private islands. Snow and water sports. At the new World that
is
One flight. And all the entertainments action sports and environments with in one
boat trip or car ride. Glass towers like nowhere else in the world. Where in
the world can anyone attain that kind of deal, as a residence and way of life? Nowhere else.
Written by Page Howe. Page Howe bears no affliation with Dubai
Select. The views expressed are purely his own.
source : Dubaiselect.com
Your future with
Thursday, March 8 - 2007
Many people look to their futures with
amassed experience and vision for potential opportunities. But even when
personal and professional strengths emerge and are clearly identified, many
visible areas of opportunity are oversaturated with competition.
The aggressive professional is
constantly looking ahead and around for the ideal place to make their mark and
establish their careers. The kinds of places and areas that
foster an assertive professional need to be identified respective to that
career.
If an individual has a focus in real
estate, there are many pros and cons to the finding a niche or core set of
products and being flexible in terms of identifying capital investors and
shaping deals or projects that support a robust growth model.
Career professionals in real estate need
a “hunting ground“ composed of sales properties and sales tools with conditions
present including excellent prospects, sustained demand, and well financed
opportunities continuing for an ongoing length of time in that market to fuel
consulting, sales, construction, banking, or lending careers.
Nowhere in the world right now presents
the same opportunity for real estate and banking professionals as in
For a geographical tourist spot like
Starting or extending a career in
Imagine taking clients to dinner at the
Armani Hotel in the Burj Dubai, not only the world’s
tallest building but with interior decoration by Giorgio Armani as well.
Imagine taking a stroll during your lunch break in practically the most
beautiful place on earth.
For those who had not considered working
and living abroad in
Written by Page Howe. Page Howe bears no affliation with Dubai
Select. The views expressed are purely his own.
source : Dubaiselect.com
How long will
Thursday, March 8 - 2007
How long will
For the billions at risk funding the new
construction whirlwind in
The mythical rainbow ends at
But the royalty of today,
be it either from business or trade, can sleep soundly in the first-to-market
luxury resort residence only a few millimeters short
of the exotic quality of living in space.
For bankers worldwide, the key analysis
is based on one question: can investment in
In a fairy tale the city would come tumbling down at
But the modern Cinderella city has Metro
line rail stations and jumbo hotels rising into the sky like
Jack-in-the-beanstalk vines wrapped in designer-faceted aluminum.
The city has grown with a verve and at an explosive
rate equal to a virtual implosion of value and property development. It’s not
coming down in a millennia.
The mere sum of materials and mountains
of resources moved to make modern
GPS systems for
navigation of three world class marinas as well as private islands. Snow and water sports. At the new World that
is
The property values of
But instead of decades, even centuries
of decay and a less than ideal sightline on the horizon, in
Written by Page Howe. Page Howe bears no affliation with Dubai
Select. The views expressed are purely his own.
source : Dubaiselect.com
When does
Thursday, March 8 - 2007
One has only to read the details of
evolving construction and erected properties to recognize that
The Burj
tower, the newest skyscraping erection aspiring to
greater and greater heights in the
Imagine the premium features of a hotel
in this city. Think about the kind of people who would be walking through the
lobby. The high-profile action spots in
The Burj Dubai
is rumored to have surpassed the 75 story mark on its
way to becoming the tallest building in the world. This brings
How is the Burj
Dubai simply not one more hotel? It’s expected to have around 162 floors, as
well as flying off the horizontal barrier of land into the sky. It’s going to
be beautiful and cutting edge, because anything less would look out of place in
The big story is the imprint of
tastemakers who have identified next-step trends and technology in past
decades. The initial 37 levels of the Burj Dubai will
be occupied by the world’s first Armani Hotel. An Armani
Hotel.
How luxurious an adventure could that be?
There is no higher arbiter of taste than
Armani. Millionaires and billionaires trust this famed designer to put behind
his brand taste design and elegance. This single destination adds to the “get a
ticket to go there NOW” feeling growing around the concept of the city of
This kind of value mean
Written by Page Howe. Page Howe bears no affliation with Dubai
Select. The
views expressed are purely his own.
source : Dubaiselect.com