Land department is issuing interim title deed of off plan property?

[PropGuy]

I hear Land Department is issuing what they call interim title deed for off plan property and all off plan property resale has to go through dubai land department. Is this true or just a rumor?

 

[PropGuy]

I checked it out further, off plan properties are to be registered with the land department. But not sure if they come with a title deed.

 

[PropGuy]

I hear registration is a must by the end of oct. 2008 even for off plan properties. Registration fee is 2% of the property value.

 

[escrow_officer]

For completed projects they are treating every buyer as an End Buyer and each sale is getting through LD registration rite now.

However for Off plan properties, they are not treating every buyer as end buyer so its " Not "getting registered with LD at the moment but wat developers are registering with RERa is their " Number of Units " of the project.

yes they have included Of plan registration clause in their amended law but have the right to implement it in near future. Rite now Its only unit registration from developers. Next phase would be to treat every buyer as an end buyer for Off Plan properties.

Regards
Escrow

 

[Wannaberich]

Escrow Officer I have a unit 75% complete,to sell it must I first register it with the LD?
I was told by a letting agent that come Nov 1st it will need to be registered.
Also,when we say 'Off-Plan-,does that mean units that havent even started construction?

 

[PropGuy]

Escrow Officer, can you clarify what said in Gulf News article?

Any sales done prior to the introduction of Law 14 are not immune, as the law applies to completed and off-plan properties, before and after the issuance of the law. Those sales done before the law have 60 days from the announcement of the law to register.

"By the end of October, all existing sales should be registered," Lynette Brown, partner at Al Tamimi and Company, said.

... The cost of registering your property is about two per cent of the property value.

Gulfnews: Mortgage law will boost confidence amidst turmoil

Article doesn't say only developers are required to register with RERA or land department. So it looks like buyers have to register their off plan properties too. I'll appreciate it if you clear the issue.

Thanks

 

[escrow_officer]

No u dont have to at this stage.

Some of the developers have started asking people for that registration at this stage. But its too early. Eventually you have to do it but its not happening rite now. The date you have mentioned was for" registration of units " and for completed projects.

If unit has not been handed over yet then it would be considered as Off Plan.

 

[escrow_officer]

PropGuy

As I said they have included Off Plan registration in the Law but it is not happening rite now.

Or you can say to get to that stage, They have asked developers to register their units first and once that is completed they would start registration for off plan projects as well.


Regards
Escrow

 

[Poorboy]

PropGuy

As I said they have included Off Plan registration in the Law but it is not happening rite now.

Or you can say to get to that stage, They have asked developers to register their units first and once that is completed they would start registration for off plan projects as well.


Regards
Escrow

So therefore,at the moment you only have to register a completed unit with the LD,not a unit that is off-plan if u are wanting to sell? so what is Law 14?

 

[escrow_officer]

JAKEB,

Yes its only happening for completed projects " But " eventually it would be started for of plan as well.
When and how it get get started, have no idea about that as they LD certainly need more manpower to deal with the volume of this registration.

Law 14 is about regulating mortgages.

Regards

 

[Stephendxb]

I hear Land Department is issuing what they call interim title deed for off plan property and all off plan property resale has to go through dubai land department. Is this true or just a rumor?

This is correct. This is Law No 13 was issued on the 14th August 2008.

The key points are:
• This law is used to record all disposals of real estate unit’s off-plan with the land department. ( the grace period is/was 2 months )
• Any sale or other disposition may be void if the unit is not recorded.
• No master developer or sub-developer can commence or sell units unless approvals have been granted from the competent authorities.
• No master developer or sub-developer are allowed to charge fees for the sale or re-sale of units unless fees have been approved by the DLD. It is anticipated a fixed fee of around Dhs 5,000 will be levied.
• Going forward a developer wishing to market his project will need to use an accredited broker.
• A purchaser defaulting under the terms of the contract with a unit registered with the Interim register will then be given a 30 day notice period to comply, if after this period he cannot meet the contractual obligations the developer may cancel the contract and repay the purchaser less a deduction that doesn’t exceed 30% of monies paid. (This applies to whatever stage of payments has been made, so the more paid the more one stands to lose if they default).
This is correct. This is Law No 13 issued on the 14th August 2008.