Dubai and Egyptian Property Law

Dubai - Sixty-day grace for the registration of real estate before developers and thirty-day grace before violators of purchasers;

 His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice-President, the Prime Minister and the Ruler of Dubai, May God bless Him, has promulgated law regulates the initial property registration in Dubai under number 13 of year 2008; this Law , which is exclusively published in Al Bayan ,  prevents the main and affiliated real estate development companies to start on the implementation of their projects or to site sell real estate before the receipt of the projects'  land and getting the necessary approvals meanwhile it prevents them from charging fees on the sale or the re-sell of the constructed real estate or those being sold before while it allows charging administrative fees provided the approval of Dubai Land department. 

Any off plan sales regarding real estate units in the city that are not registered in the Initial Property Registration of Dubai will be legally invalid under the present law; such law compromises 15 articles grants the developer 60 day grace to register the sales contracts or any contracts proceeded the promulgation of that Law, meanwhile, it permits the sale or the mortgage of the real estate sold provided that such properties are registered at the Initial Property Registration, from the other hand, the Law stipulates that the developer who attempts to market his project through mediator, such mediator shall be registered at the brokers record and marketing contract shall be registered at the emirates' Land Department. 

From his part, Sultan Buti, director general of Dubai territory was in the view that the new law will contribute to curb the speculations that harm the real estate market through governing the acts with respect to the real estate that were sold before on the Map under Law protecting the rights of all parties and regulates their relationship and addresses in advance any disputes that may encounter in future . 

According to the saying of Jumaa bin Hameedan, the Assistant Director-General, the application of this Law would give a boost to year 2008 in a way that it can be named the Year of the Real Estate Organization, meanwhile Eng Marwan Bin Glaith, Chief executive Officer of Real Estate Management Foundation, commented  that developers, purchaser, and brokers would feel that this law deals with unprecedented firmness with the precise details of their interrelation; such firmness  underlines the cleverness of the legislator to lay down the rights and obligations of stakeholders avoiding the occurrence of any conflicts, "I think that demand will rise to its highest levels following the issuance of the new law and the future time will witness a rise in the value of completed real estate" Eng Marwan Bin Glaith said.

Details

Definitions for the purposes of the current Law

Emirate: Dubai

Department: Land and properties Department

Real estate Registry: Land Registry of the Department

Initial Property Registration: Set of documentation issued or saved electronically or in writing that certify the contracts for the sale of real estate and other legal acts preceded its referral to the Land Registry

Real estate: Land and fixed establishment built upon which can not be moved from one place to another without damage or change;

Real-estate unit: any unit of real estate includes any unit set on the map .

Sales on the map: the sale of real estate units fixed on the map or that are already underway or completed.

Main Developer: Each one is licensed to engage the work in the development of real estate in the emirate and the sale of its units to others .

Sub Developer: Each one is licensed to engage the work in the development of real estate and the sale of its units to others, and who develops partially real estate project afflicted to main developer under an agreement among them

Mediator: anyone who practices real estate mediation work in accordance with Regulation No. 85 of year 2006 on the organization the record of real estate brokers in Dubai .

The competent authorities: Authorities entitled to license or register real estate projects in the emirate

Mandatory Registration: The issued Law stipulates that all acts undergone with respect to the sold real estate units shall be registered in the Initial Property Registration and any legal action regarding the sale of property or any relevant acts if are not registered in the initial property registration shall be legally invalid .

Retroactive effect: the Law imposes obligation on every developer has sold or engaged in any acts with respect to the property of real estate in a time proceeded the application of this law as each developer shall register the concluded acts at the Land department or at the Initial Property Registration each according to its conditions within a period not exceeding 60 days from the date of the enforcement of this law .

No sale prior to the receipt of land: The law prohibits the main or sub developer to initiate in the implementation of the project or the sale of its units prior to receipt of the land on which the project will be established and obtaining all approvals necessary by the competent authorities; In all cases, a sign shall be placed in the building that is being constructed proving having all necessary approvals and the receipt of land.

Application for registration: The Law provided that an application for registration of real estate unit shall be submitted to the Initial Property Registration; that application shall be filled in the form prepared for this purpose provided the compilation of all necessary documents and data in accordance with applicable regulations and procedures.

Registration allows the disposition of real estate: The Law authorizes the disposition of real estate units sold on the map and registered in Initial Property Registration with respects to its sale or mortgage and other legal acts

Fees for the sale of real estate: the law prevented the main and sub-developer of charging any fees for the sale or resale and other legal acts with respect to real estate units completed or sold on the map with the exception of administrative expenses charged by main and sub developer from others agreed by the Land Department;

From the initial registration to the Land Department: The law provided that developer shall register the projects completed at the Land Department immediately after  obtaining a certificate of accomplishment by the competent authorities; such includes the registration of units sold under the names of its purchasers who have fulfilled all contractual obligations in accordance with procedures established;  in order to achieve that, the law permits the registration of all units registered at the Initial Property Registration that are sold under the names of its purchasers provided that the purchaser has fulfilled its contractual obligations.

Developer contract with mediators: If developers need mediators for marketing purposes; he shall conclude contract with certified mediators in accordance with the terms and conditions set forth in the regulations on the registered real estate mediators in the emirate of Dubai No. 85 of year 2006; meanwhile the developer shall register the concluded contract at the Department according to the provisions of this law. This Law also prevents the developer or broker to conclude informal contracts for the sale of real estate or real estate units on the map in projects have not been approved by the competent authorities and any contract entered into before obtaining such approval shall be void.

The cancellation of contract: Under the new law, if buyers default on a sales contract it becomes the developer's responsibility to report the breach to the Land Department, the Land Department shall notify the buyer in persons or by mail of acknowledgment of receipt or by email and grants the buyer 30 days grace to comply with contractual obligations. If the issue is not resolved within the period the developer can cancel the contract and return all money paid, minus 30%, which they are allowed to keep.

An Increase or decrease in the area of real estate: Under the new law, the sold area of real estate deemed to be correct and no increase will be considered after the delivery of the land; the developer may not claim the value of such an increase, meanwhile in case of any decrease to the lot of land, the developer is committed to compensate the purchase for any decrease unless such decrease is ineffective; in that case the developer is not obliged to compensate the buyer.

Penalties: If it is proved to the Department that developers or brokers engaging in any act or omission established by the provisions law or any other legislation in force; the Director-General of the Department shall prepare a report to be referred to the competent investigating bodies .

Under this Law;

-          The Chief Executive Officer is entitled to pass any regulations on the implementation of the provisions of this law; this law shall be published in the Official Gazette and come into force from the date of publication

-          Dubai Land Department shall issue a notice granting the breaching buyer 30 days grace to comply with contractual obligations. If the issue is not resolved within the period the developer can cancel the contract and return all money paid minus 30%

-          The buyer is exempted from any financial obligations towards the developer, if he received the real estate with an increase in the area agreed upon; meanwhile the developer is obliged to compensate the buyer if an decrease in the received area occurred unless such decrease is ineffective;

-          Director of Dubai Land Department is entitled to refer with mediators or developers violate the provisions of this Law or any other legislation in force to the competent investigation bodies after preparing a report stating the violations committed.

Egyptian Property Law

When buying a plot of vacant land wherever it is; the following shall be available:

1.       The ownership contract (if it is registered or not)

2.       land allotment Contract

3.       the Report of land receipt

4.       A proof  that the land  is free of all mortgages, receiverships, or debits

5.       Proof whether the land is under jurisdiction of urban communities or the Governorate

6.       Is it licensed for buildings or other uses (have access to the documentation if available)

7.       Knowing the percentage of land designated for construction

8.       If it has all utilities or not  

When buying apartment, whether existed or under construction, the following shall be available:

1.       The land property contract, if it is certified or not

2.       Have access to buildings license

3.       Reviewing the terms of purchase contracts thoroughly to confirm its terms that includes maintenance fees or other payments for services provided like the parking share if it is included in the flat price or not.

4.       Assuring the date of delivery and the seriousness of the constructional works at the time of concluding the contract.

5.       Assuring that concluded contract denied the right of the building owner to construct further higher stories

6.       Assuring the percentage of total net flat allotted area so as not to exceed 20% at most

7.       In the case of purchasing from one of the purchasers; be sure that all dues are paid and having a proof proving such.