Al Tamimi reacts to Dubai Land Department's circular

Al Tamimi & Co's, Mohammed Kawasmi, discusses Dubai Land Department’s circular to ease real estate registration services

The circular issued by DLD was aimed towards easing real estate registration services [Image: Pixabay]
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The circular issued by DLD was aimed towards easing real estate registration services [Image: Pixabay]

A common complaint among real estate developers and purchasers is arguably the elaborate registration procedures for Initial Sales Contracts.

The chief executive officer of real estate registration services at Dubai Land Department (DLD), Majid Al Mirri issued a circular concerning the registration of Initial Sales Contracts.

The move is part of DLD’s efforts to ease the registration services of real estate rights in Dubai.

The circular R/102/2020 — effective from 29 January 2020 and applicable to all real estate developers in the emirate — states that real estate developers and purchasers are not required to sign the Standard Sale and Purchase Form generated by the Developer Self Registration (DSR) system for registration of Initial Sales Contracts.

The developer’s sale and purchase agreement, which is signed by the developer and purchaser — with other necessary documents — will suffice for registration purposes, the circular confirms.

This development, as issued by DLD “aims to save the time generally taken during registration by eliminating the need of signing an additional document — the DSR Form — by the developer and the purchaser,” partner for real estate practice at Al Tamimi & Company, Mohammed Kawasmi tells Construction Week.

“In our view, this is a very positive development, which will simplify and expedite the registration process of Initial Sales Contracts,” Al Tamimi & Company stated on its website.

“Previously, in order to complete the registration procedures, the DSR form had to be couriered to the purchaser by the developer for signature purposes.

“It [the circular] is useful in the event that the purchaser is not based in Dubai; now, the DSR form is not required, and the registration can be done only on the basis of the sale and purchase agreement signed between the developer and purchaser,” Kawasmi says.

Furthermore, speaking about the sale and purchase agreement, Al Tamimi & Company recommends “executing it in a bilingual format to ensure the accuracy of translation, and to avoid misinterpretation of any provision,” Kawasmi confirms. 

In addition, he suggests that the sale and purchase agreement, which govern the relation between the two parties, must be reviewed with care and attention by the parties prior to signing the sale agreement. “There is no standard sale and purchase agreement in Dubai in relation to off-plan sales,” he adds.

While the circular is structured to ease real estate registration services, irrespective of the developer and purchaser’s location, it could also possibly be viewed as part of DLD’s conscious efforts to go paperless in terms of real estate transactions.

“In addition to the circular, real estate dispositions at the real estate registration trustee offices are executed by way of an electronic signature by reading the relevant party’s Emirates ID card and fingerprint, rather than signing separate printed contracts generated by the registration system,” Kawasmi says.

Commenting on the impact the circular has on dispute resolution mechanisms, he concludes: “The circular does not affect the dispute resolution mechanisms; the dispute resolution clause agreement between the developer and the purchaser in the [sale and purchase] agreement is binding on both parties.”

The circular was issued by DLD via email to all Dubai real estate developers, Al Tamimi & Company confirmed.

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