Dubai has issued law number 8 which governs how payments made by buyers into off plan project be made available to the developers, it will only be released on the order of the Dubai Land Department.Dubai’s Land Department governing trust account conditions for real estate developments. The trust account service will ensure that payments made by investors towards “off plan” property purchases are protected until residential units are registered in the buyer’s name. Property developers across Dubai now have to hold a guarantee account with one of three financial institutions that are in partnership with Dubai’s Land Department. Money paid by buyers or financiers towards properties will be deposited into a trust account with the respective institutions. Developers can then apply for the money to be released by the trust account manager by producing a certificate from a consultant certifying that the project has reached an agreed stage.
Subscribe to:
Post Comments (Atom)
9 comments:
I am not sure if this a good idea, or that it might help the market develop progressively as we are seeing right now , I am sure it will deter many developers wanting to access the market as it may put pressure on their cash flow.
I believe this is done to slow this sizzling market and try to stabilise it, in another word put a break so it doesn't lose control. Not a bad idea, and off course insure that no scam business would happen like the things we have seen lately in other countries like spain.
I believe that this law will encourage respectable international institution to enter the market as the real estate becomes regulated and secure. These institutions were real weary as the developers were not accountable previously. Now it is a different story, only those who can make the commitment can do business in the emirate of Dubai.
Inventors should now feel at ease and more relaxed paying to developers as they know that the developer will only receive sums of money according to the progress of the project.
ArabianBusiness.com report that HSBC, Dubai Islamic Bank (DIB) and Badr Al-Islami, the Islamic banking division of Mashreq, opened the trust accounts as a result of Law No.8 which now asserts mandatory use of the account when buying an off-plan property in Dubai.
Property analysts have said Dubai's new law on trust, or escrow, accounts, requires clarification with regard to foreign investment, reported Gulf News. Bin Shabib and Associates said, at present, foreigners holding a title deed for a plot of land can only obtain the necessary licence to build a development by going through a local intermediary. This requirement could be preventing overseas firms from raising their investment levels in Dubai.
It is time that this law comes out , more clarity was needed to as what is happening to investors funds who decided to invest in Dubai
This was made to give more confidence to investors and to open new markets for Dubai to include instututions that needs more gurantees to enter and start investing.
Hello Everybody,
My name is Mrs Sharon Sim. I live in Singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:(urgentloan22@gmail.com) Thank you.
BORROWERS APPLICATION DETAILS
1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
10.age/sex…………………
11.Monthly Income…………..
12.Email……………..
Regards.
Managements
Email Kindly Contact: urgentloan22@gmail.com
Post a Comment