A
Ajmanprop
New Member
Anyone know of any projects that conform to these laws in Ajman? I wouldn't buy even if they did, having been burnt already - but just out of curiosity.
Original by Clyde & Co - published 1st Sept 2008.
http://www.clydeco.com/knowledge/articles/uae-real-estate-update-ajman-introduces-new-property-laws.cfm
Ruler's Decree 8:
2.1 Registration and Escrow Accounts
Decree No. 8 states that no person (this includes entities as well as individuals) will be allowed to start development, advertise in local or foreign media or promote sales of units in a real estate project before registering the project with the Real Estate Projects Committee and receiving a license from them. A list of requirements for completing the registration procedure is included in the Decree and the list includes the requirement to open an escrow account. The requirements are very similar to those published by the Dubai Government in relation to the opening of escrow accounts by developers in Dubai.
2.2 Developer’s Obligations
The developer’s obligations are also similar to those imposed by the Dubai Government. All amounts drawn from the escrow account must be used towards the construction of the project and five percent (5%) of the total value of construction must be held in the account until one (1) year after the Ajman Municipality issues a completion certificate or the General Manager of the Land Department authorises the release of the funds. The Land Department may take legal measures against a developer if it does not commence construction within six (6) months of obtaining approval or if work is stopped for two (2) months without an acceptable justification to the Land Department.
The penalty for launching a development or practicing a real estate development activity without a licence is a fine of not less than AED 100,000.
2.3 Transitional Period
We asked our sources at the Land Department to confirm whether a transitional period would be announced to allow developers of existing projects to become compliant with the registration requirements of Decree No. 8. We were told that a transitional period has not been announced but the Land Department has issued an advertisement inviting developers to commence the registration of projects. We are advised that most developers have now registered their projects and some have opened escrow accounts. All developers are being invited to register their projects and open escrow accounts as soon as possible.
Original by Clyde & Co - published 1st Sept 2008.
http://www.clydeco.com/knowledge/articles/uae-real-estate-update-ajman-introduces-new-property-laws.cfm
Ruler's Decree 8:
2.1 Registration and Escrow Accounts
Decree No. 8 states that no person (this includes entities as well as individuals) will be allowed to start development, advertise in local or foreign media or promote sales of units in a real estate project before registering the project with the Real Estate Projects Committee and receiving a license from them. A list of requirements for completing the registration procedure is included in the Decree and the list includes the requirement to open an escrow account. The requirements are very similar to those published by the Dubai Government in relation to the opening of escrow accounts by developers in Dubai.
2.2 Developer’s Obligations
The developer’s obligations are also similar to those imposed by the Dubai Government. All amounts drawn from the escrow account must be used towards the construction of the project and five percent (5%) of the total value of construction must be held in the account until one (1) year after the Ajman Municipality issues a completion certificate or the General Manager of the Land Department authorises the release of the funds. The Land Department may take legal measures against a developer if it does not commence construction within six (6) months of obtaining approval or if work is stopped for two (2) months without an acceptable justification to the Land Department.
The penalty for launching a development or practicing a real estate development activity without a licence is a fine of not less than AED 100,000.
2.3 Transitional Period
We asked our sources at the Land Department to confirm whether a transitional period would be announced to allow developers of existing projects to become compliant with the registration requirements of Decree No. 8. We were told that a transitional period has not been announced but the Land Department has issued an advertisement inviting developers to commence the registration of projects. We are advised that most developers have now registered their projects and some have opened escrow accounts. All developers are being invited to register their projects and open escrow accounts as soon as possible.
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