Law No. (13)
of 2008 Regulating the Interim Real Estate Register in the
Emirate of Dubai
WE, Mohammed bin Rashid Al
Maktoum, Ruler of Dubai
After
taking into consideration Federal Law
No. 7 of 1997 regarding land
registration fees;
Law No. 7 of 2006 regarding real
estate registration in the Emirate of
Dubai;
Law No. 8 of 2007 concerning real
estate development trust accounts in the
Emirate of Dubai;
Law No. 27 of 2007 on ownership of
jointly owned properties in the Emirate
of Dubai;
Regulation No. 3 of 2006 specifying
the areas where non-UAE nationals may
own real properties in Dubai, and
Regulation No. 85 of 2006 concerning
the Register of Real Estate Brokers in
the Emirate of Dubai.
Issue the following
Law:
Article (1)
This Law shall be
called “Law No. (13) of 2008 Regulating
the Interim Real Estate Register in the
Emirate of Dubai”.
Article (2)
The following words and
expressions shall have the meanings set
out opposite them unless the context
otherwise requires:
Emirate:
Emirate of
Dubai.
Department:
Department of
Lands & Properties.
Real
Estate Register:
The Real Estate
Register maintained by the
Department.
Interim
Real Estate Register:
A set of
documents kept in written or
electronic form in the
electronic register at the
Department in which all
contracts for the sale of
real estate and other
dispositions off plan are
recorded before being
transferred to the Real
Estate Register.
Real
Estate:
Lands and
permanent structures erected
on them which may not be
moved without suffering
damage or alteration
Real
Estate Unit:
The subdivided
part of the real estate
including any subdivisions
off plan.
Off
Plan Sale:
Sale of
subdivided real estate units
off plan or under
construction or not yet
completed.
Master Developer:
A person
licensed to develop real
estate and sell its units in
the Emirate.
Sub-Developer:
A person
licensed to develop real
estate and sell its units
and who develops part of a
real estate project of a
master developer under an
agreement between them.
Broker:
A person
engaged in real estate
brokerage activities
pursuant to Regulation No.
85 of 2006 regulating the
Register of Real Estate
Brokers in the Emirate of
Dubai.
Competent Authorities:
The
authorities concerned with
licencing and registering
real estate projects in the
Emirate.
Article (3)
The Interim Real Estate Register
is used to record all disposals of
Real Estate Units off plan. Any sale
or other disposition that transfers
or restricts title or any ancillary
rights shall be void if not recorded
on that Register.
Any developer who made a sale or
other disposition that transferred
or restricted title prior to the
coming into force of this Law should
approach the Department to get it
registered in the Real Estate
Register or the Interim Real Estate
Register, as applicable, within 60
days after the date on which this
Law came into force.
Article (4)
No Master Developer or Sub-Developer
shall commence a project or sell its
units off plan before taking possession
of the land on which the project is to
be built and obtaining the necessary
approvals from the Competent Authorities
in the Emirate.
In all cases, the Department shall
indicate in the relevant folio of the
register that the Real Estate is under
development.
Article (5)
An application to register the Real
Estate Unit in the Interim Real Estate
Register shall be filed using the
standard form. The required information
and documents shall be furnished in
accordance with the applicable rules and
procedures of the Department.
Article (6)
Real Estate Units that are
marked as sold off plan and are
registered in the Interim Real Estate
Register maintained by the Department
may be sold, mortgaged or otherwise
legally disposed of.
Article (7)
The Master Developer and
Sub-Developer are not allowed to charge
any fees for the sale, re-sale and other
dispositions of Real Estate Units that
have been completed or marked as sold
off plan. This restriction does not
apply to administrative expenses which
the Master Developer and Sub-Developer
charge to third parties with the
approval of the Department.
Article (8)
Developers must register completed
projects in the Real Estate Register
maintained by the Department as soon as
a completion certificate has been
obtained from the Competent Authorities,
including any units that were sold to
purchasers who have fulfilled their
contractual obligations according to the
applicable procedures of the Department.
For the purposes of this Article, the
Department may, upon request of the
purchaser or of its own initiative,
transfer Real Estate Units that are
marked as sold off plan from the Interim
Register into the purchaser's name on
the Real Estate Register once the
purchaser has fulfilled his contractual
obligations.
Article (9)
A developer who wishes to
market his project through a real estate
broker must first conclude a contract
with a Broker who is accredited under
the terms and provisions of Regulation
No. 85 of 2006 concerning the Register
of Real Estate Brokers in the Emirate of
Dubai then the developer must get the
contract registered at the Department.
Article (10)
The developers or the
broker cannot conclude informal
contracts for the sale of Real Estate
and Real Estate Units off plan in
projects that have not been approved by
the Competent Authorities. Every such
contract made without such approval will
be void.
Article (11)
In the event that the purchaser
defaults on any term of the contract
he made with the developer for the
sale of the Real Estate Unit, the
developer should notify the
Department accordingly and the
Department will then give the
purchaser 30 days notice to fulfill
his contractual obligations, by
hand, registered post or email.
If at the end of the period
referred to in item 1 of this
Article the purchaser has not
fulfilled his contractual
obligations, the developer may
cancel the contract and repay the
purchaser his money less a deduction
that does not exceed 30% of the
monies paid by the purchaser.
Article (12)
The area of a sold Real
Estate Unit is correct. If the unit
turns out to be bigger on completion,
the developer may not claim the
difference in value and if the unit
turns out to be smaller then the
developer must compensate the purchaser
for the difference unless it is marginal
in which case the developer would not be
required to compensate the purchaser for
the shortfall in the area.
Article (13)
When the Department finds
that a developer or Broker has committed
an act or omission that constitutes an
offence under this Law or other
legislation in force, the Director
General shall prepare a report and refer
the matter to the competent
investigating authorities.
Article (14)
The Chairman of the
Executive Council shall issue the
regulations required to implement this
Law.
Article (15)
This Law shall be published in the
Official Gazette and shall take effect
from its date of publication.
MOHAMMED BIN RASHID
AL MAKTOUM
RULER OF DUBAI
Issued in Dubai on 14th
August 2008
13 Shaban 1429 Hegira
