Developer disclosures enforced, firm tells paper
Mandatory project statements to investors demanded following new law
The Dubai Land Department is enforcing the new requirements for developers to disclose project details to investors, according to local property firms talking to local press.
ETA Star Properties told Emirates 24/7 that Dubai Land Development had asked them to submit project details including the building’s facilities and the estimated service charges to the buyers.
"We have complied with the order and have sent the statement to all our investors," said Mohamed Ali, general manager.
Disclosure statements became mandatory on 13th January in order to enhance the clarity of a project’s status for investors buying jointly owned properties, especially those bought off-plan.
Any contract for the sale of a unit within a JOP must be accompanied by an interim disclosure statement, where the title to the unit has not been issued by the Land Department, and the seller is the developer.
The aim is to uphold the rights of investors following a series of high-profile residential projects that stalled work following the sharp downturn in the emirate and subsequently froze communication with buyers. Dubai Lagoons, a multi-zone project, attracted particular ire from investors who were offered units in zones other than those for which they had paid their deposit, along with abrupt changed offers on payment schedules. The project has since improved both its communication and more construction work is underway.
Last June, The Dubai Land Department launched a scheme that would guarantee the completion of 40 selected projects by improving communication between the Department, the government, developers and banks and boost lending liquidity. Called ‘Tayseer’, the scheme requires that the projects must be 60% completed and must disclose certain details.
Once a project had been examined and approved for Tayseer, it receives the Tayseer trademark, and a government guarantee that it will be completed and by a specific date. Developments in Business Bay, Dubai Marina and Jumeirah Lake Towers were among the targets for the scheme.
“The real estate markets will not advance without the banks,” Ziad El Chaar, general manager at Damac Properties, a developer with three projects in the Tayseer scheme, told CW last July.