Dubai Land Department’s ‘Initial Registration System’ makes strong impact at the ‘International Property Show - Dubai 2009’

Dubai Land Department’s ‘Initial Registration System’ makes strong impact at the ‘International Property Show - Dubai 2009’

Event successfully hosts specialized ‘Consultancy Zones’ to assist property buyers and investors

February 18, 2009

The Dubai Land Department’s ‘Initial Registration System’ has made a strong impact among real estate investors during the 'International Property Show - Dubai 2009', which concluded its successful three-day run yesterday (February 17, 2009). The event, which also hosted specialized ‘Consultancy Zones’ to assist property buyers, has helped visitors gain a deeper insight on the new system that mandates the registration of incomplete sale transactions for the residential units that are still in their planning stages within the database of the Dubai Land Department (DLD). Organizers have attested to the positive turnout at the show, especially given the exhibition's association with the Dubai Land Department.

Under the system, a certificate that reflects the purchase and rates of the settled and remaining payments will be issued to ensure the investors’ rights to property. Subsequently, the DLD will issue an ownership certificate after the delivery of the property and when the payment has been settled completely. The ‘Initial Registration System’ has been designed to boost activities within the real estate market by developing and expanding the database and making current information easily accessible for the full use of players within the real estate market. The launch of this system is in line with the DLD’s goals to have a fully registered market that upholds the rights of the developers and buyers.

“Creativity and innovation in the registration services are our major focus in Dubai Land Registration, as part of our commitment towards regulating the industry and protecting the rights of all concerned parties,” said Mohammad Sultan Thani, Assistant Director-General for Excellence and Governance, Dubai Land Department. “The ‘Initial Registration System’ is considered a unique initiative on the international level, as the practice of property registration in most countries is done only for the built properties. By facilitating the initial registration according to the sale operation on map, we can provide coverage for all the sales operations and ensure all the stakeholders’ rights are protected.”

In addition, the Department has also hosted a discussion on the importance of initial registration between industry leaders present at the ‘International Property Show - Dubai 2009’. Several investors and one of the beneficiaries of the system have expressed their confidence that the ‘Initial Registration System’ will minimise the problems between the developers, investors and buyers, and will reduce the high costs and expenses of sale and resale of properties on maps. It was also revealed during the discussion that the fee for the ‘Initial Registration System’ is the same as the fee required for buyers and sellers (both at 1 per cent) to register to the Department prior to this new system.

“Dubai’s ‘Initial Registration Law’ is truly a great model for all property markets across the globe, as it restricts the main and the subsidiary real state development companies to start the implementation of their projects or sell their properties on map before the delivery of the project’s land and receipt of the required approvals. It also prohibits them from charging fees on the sale and resale of existing properties or properties that are sold on the map, as this law only permits the charging for administrative expenses after taking the approval of Dubai Land Department,” concluded Thani.