Dubai developers are urged to stop delaying property sales registration. Land Department must open separate accounts for these payments to speed up process.
Dubai , Dubai
22 November 2020, 12:00 AM
30 November 2020, 12:00 AM
Dubai developers should be urged to complete registration of sales deeds in 7 days rather than the 60-day window given to them to prevent misuse.
Some developers purposely delay registering the units in the ‘Oqoodi’ system which in turn has a negative impact on the sector, according to the head of a brokerage firm.
Walid Al Zarouni, Chairman of W Capital said, “This will imperil investor confidence in the Dubai market . By delaying registration, developers benefit as the price of the units is used as available liquidity, especially if there are a large number of units or big bank deposits with high interest rates.”
“The momentum in Dubai’s real estate must be maintained by bridging any gap that could constitute an obstacle to progress,” the W chief added.
Another way would be to impose heavy fines on developers for any such delays. Or they can issue the buyer’s cheque in a special account of the Dubai Land Department, which will force the developer to start registration process immediately to get access to the funds.
Al-Zarouni says it should not stop with that – even registration fees on the transaction can be deposited into a special account with the Land Department.