11 mins to read,
May 12th, 2020
- Senior Adviser & Trainer at the Dubai Real Estate Institute
For the past 10 years, Hiba Jaber has been a Consultant and Instructor at Dubai Real Estate Institute (DREI) conducting real estate sales and leasing brokerage laws and regulations training in Dubai, Sharjah and Bahrain. Hiba is a member with the National Association of Realtors (NAR), an International Realtor Member, and holds the Certified Real Estate Brokerage Manager (CRB) and Accredited Buyer’s Representative (ABR) designations.
Q & A with Hiba Jaber
What is the process for digitally signing an EJARI during current times for both parties involved?
Ejari Registration can be done by Property Management companies who have access to the Ejari system. Landlords can also access Ejari through the Dubai REST Smart App.
Either way, Ejari contracts are digitally signed by request and response between parties and physical signatures are not required.
Below is the step by step process for Ejari Registration by Landlords through Dubai REST:
1- Download the Dubai REST app from your App Store ( IOS & Android)
2- Click on the login button
3-Select your login type as an owner.
4- Select your login method( emirates ID, title deed, mobile number)
5– Assuming you are using the Emirates ID log in method, fill your ID number then click on the button ( get OTP)
6– Fill the received OTP code
7– Click on VERIFY App will redirect the user to his dashboard page.
8– Click on the property type App will show a list of your units
9– Click anywhere within the unit details box to select the desired unit
10– Review the unit details and click on the ‘options’ icon App will show a list of services you can request for the selected property ( Valuation, Mollak service charges etc.)
11– Click on the button ( Ejari contract)
12– Fill the form to search for your tenant using his EID or passport. If the tenant is not found, click on the new tenant button and fill tenant details.
13- Click on proceed to contract information button to fill all of the contract information and click continue
14- Review the fee details (AED 300) and click “pay now” or “send to tenant for payment “
15- App will redirect you to pay using Noqoodi payment gateway.
16- Complete the payment process using Noqodi payment methods ( noqodi wallet, credit card etc)
17- Once payment is processed successfully, Ejari contract will be activated directly).
18- If you choose “send to the tenant for payment”, app will show confirmation message informing you that the contract is not activated and is pending payment.
Landlords can also use Dubai REST to cancel and/or renew Ejari.
Since the lockdown has eased and registration trustees are now open and taking appointments, what is the process for a transfer? Do we go back to the old method? Do we stick to the new digital method?
Registration of property transfers can be done remotely through Registration trustee offices.
The mechanism is as follows:
In the case of a complex mortgage procedure (mortgaged property/mortgaged buyer), the current bank must deposit the value of the mortgage balance in DLD’s account and the amount will be disbursed to the parties concerned by the department.
In the event of a mortgage, the electronic Title Deed will be sent to the bank with a copy to the buyer.
What happens if we were in the digital transfer process during the lockdown and want to switch to the former, traditional transfer process?
So let’s go through the digital process to begin with.
So as we know there was a time when we had a lockdown so the registration trustee and the registration services centers were closed. Now they open their office hours during the holy month of Ramadan. The real estate service trustee centers are open 9:00 to 3:00. The real estate registration trustee centers are open 9:00 to 2:00 Sunday through Thursday at of course 30% of the capacity. So it is recommended that real estate stakeholders utilize the real estate related services offered through these centers as a first option having said that if the parties to a real estate transactions are out of the country with an absence of a power of attorney representative, the digital property strengths transfer can still be available as an option to facilitate and service the parties to the transaction again through the slides. Of course, you can see that we have provided you with a step by step process.
Should you decide that you want to go through the digital property transfer then again just a quick summary of how the process works in order not to take a lot of today’s time. The application will have to be done through the registration trustee. The documentation needs to be sent to them. They will go through details in terms of what the requirements that are required from the buyer and the seller so if the center happens to be out of the country, you know information pertaining to that Center is bank account. Iban Swift account seller, buyer phone number email in case there is a mortgage.
Of course, they’re going to need details of the bank the bank representative so they can note it at hand in case any type of questions arises pertaining to the mortgage situation be it with the seller or the buyer for dealing with a mortgage discharged the sale price has to be verified with to buy lands apartment. So again, this is all done through the registration trustee, but not physically you can just simply you’re doing it through emails and basically correspondence online. Even the payment is done and processed through what we call the EPA Gateway managers checks are still acceptable in certain situations until they move away completely from this stack of payment method.
If a tenant (short term rental) refuses to leave after his contract is over, what options we can pursue? We understand in the current situation some tenants have genuine difficulties and we are considerate towards them but some tenants have bluntly said they will not leave.
If you do have any type of disputes between landlord and tenant pertaining to short-term rentals specifically any matters pertaining to Holiday Homes having said that I really want to point out also the positive aspect especially during this crisis is overall, the latest statistics from our DC revealed a 75% decrease and the number of eviction over rental claims during this specific period and it has partly to do this reduction has hugely to do with the I want to say honestly the humanitarian efforts of many landlords towards their tenants who have lost their jobs, of course during this Health crisis and in case you know of a situation where there’s still a dispute people have to go to our DC. How are the judges acting in this way in this specific situation judges are trying to settle cases between landlords and track. That’s the first I want to say Resort that they attempt is to try to settle the case between the landlord and the Tenant now having said that if they can’t manage then, of course, they have to revert back.
The law and at the same time with tenants that are basically sending complaints about the fact that we can’t pay rent and it’s because you know, we’ve lost our job or we experienced a reduction in our salaries what the judges are asking for is proof, right? So again because they need to be fair to both parties.
We understand that the POA holder may now collect the banker check of the sale amount in his/her name provided it is mentioned in the POA. Is that true?
This is my information is as recent as I want to say end of last week. They were Dubai land Department were very keen on pushing business through the registration process centres now that they are open but again recognizing the fact that they’re only operating at 30% capacity and if the buyer and seller are out of the country, without a POA representative. They should be able to go through the digital process.
A Broker can now represent his/her next of kin by POA?
Their broker cannot be a power of attorney. That’s how it’s always been. So even if a broker went to the registration trustee to facilitate a transaction and he was a power of attorney holder Dubai Land Department registration trustee would not have allowed the process to go through now.
My RERA license expired. What is the renewal process? Can I take the continuing education courses on-line?
You can renew your license by taking the continuing education courses on-line via the following links:
For other on-line courses, visit https://drei.gov.ae/default.aspx
My RERA license expired and so did my company’s trade license. Can I renew my card before my company renews its license?
Do not forget that the laws have not changed, meaning you as a broker in order for you to be a licensed broker, you have to link yourself up with a company that is also registered and licensed. So you have to make sure that your company license is also renewed before you can renew your license again. I’ve had a lot of questions about people saying well, how do I renew my license? Can I do it online? Yes, you can renew your commercial license through DLD online and I really want to stress the need to adhere to the state laws in all aspects of the business.
What happens to the units which are already under cancellation with the Dubai Land Department because of payment default from property purchasers?
Before I answer it directly, I will give a little bit of an overview of the existing laws that we have in place simply because the laws have been changed. Law number 19 of 2017 amended and built on the procedures contained in Law number 13 of 2008. Under this new law which was published in 2017, if a buyer breaches its obligations under an off-brand sales contract the developer can notify the DLD about the default and accordingly the DLD will issue a default notice to the buyer allowing 30 days to remedy the default. In the event the default persists beyond the 30-day notice period, DLD may issue an official document stating the developer has fulfilled his legal obligations and specifying the percentage of completion of the property. After the developer receives this document from DLD, the developer may take action without approaching the court or pursuing arbitration. This action is based on the project’s percentage of completion and the options are made available to the developer accordingly.
So to give you an example, if the percentage of completion of the real estate unit is between 60% and 80%, the developer may terminate the sale contract, deduct not more than 40% of the price of the real estate unit that is specified in the off-plan sales contract and return any excess amount to the buyer or the purchaser within one year of the date of the termination of the contract or within 60 days of the date of re-selling the real estate unit to another purchaser, whichever is earlier. A check will be delivered in the name of Dubai Land Department, which is placed in the Department’s account until the investor comes to receive that amount.
So to answer your question directly now developers have legal rights, by recognising the unusual circumstances caused by Covid-19, developers might agree to negotiate that payment plan with their clients by allowing more flexible and delayed payment schedules in line with some banks now offering a three months penalty-free repayment option for their financially impacted borrowers, which I’m sure you guys will probably discuss with the mortgage and the banking section.
We’ve already seen many big developers have either given free rents periods or extended payments and waived fines and fees for early termination. E.g. the Dubai Silicon Oasis Authority announced a package of incentives exemptions and flexible payment plans for companies commercial tenants and residents to help them cope in today’s markets and conditions.
So these measures are being done people are negotiating but again, in terms of the law, the law is the law and people still have to abide by it if there are no agreeable decisions made between the two parties.
Is it possible to transfer property with the buyer being outside of the UAE?
Yes. So we have now what we call the ‘digital property transfer process’. If the buyer is out of the country DLD will conduct a video call between the buyer and the seller to confirm the identities of the buyer and the seller and to accredit their signatures to the contract. once DLD receives all their payments through their new e-pay service, it will go ahead with the approval and issue the new Title Deed. The buyer receives the Title Deed electronically by email, on the other hand, of course, if a buyer who is not a resident of the UAE can always appoint a power of attorney.
Is implementing any new procedures / digital transfer processes?
Yes, it’s now done electronically, DLD has a new payment system what they call the new e-pay service, I’m going to have DREI will have details on the whole process in both languages English and Arabic very soon. We’ll publish it through our LinkedIn, social media and website.
RERA issued a no eviction policy from March and April, will this be extended into May and June?
As of today, the matter regarding extension is still being reviewed, and they will go public with any announcements on how to handle the enforcement’s of prior decisions and cases involving rental evictions due to non-payment of rent. So I’d say just, you know, hang in there and we will keep you posted as in one an official announcement is made
Can real estate evaluation firms take permissions and carry out inspections? What is the acceptable process right now for evaluation?
DLD valuers are conducting evaluations these days. There are three channels through which valuation requests can be raised: Dubai REST app, DLD websites and the real estate trustee services. Now for valuation requests by individuals, this can be raised through the REST app or DLD website. For companies, these requests will have to be raised through real estate trustee services.
If you have any questions on the documentation that’s required, always contact DLD hotlines number is 800 44 88 or email info@dubailand.gov.ae
There’s also live help support that is available to assist you if you encounter any problems or complications with the system. The normal process for conducting valuation is still the same when a customer applies for evaluation through DLD he or she gives the DLD authority to visit the site, so hopefully, this gives you a little bit of an overview about how do you go about requesting such processes.
When will secondary sale transfers take place physically? How long this how long will this online transfer continue? Is this something that’s going to continue even after the lockdown is over as convenience are the registration trustees going to open up right after the lockdown?
I can, of course, talk about my own opinion in the matter. I don’t see why not as I’ve gotten so much positive response about having things being done now electronically. There’s always been that kind of sense about ‘do I really need to use a POA’, ‘why do I have to appoint a POA’…of course, recognizing that, unfortunately, some of the power of attorney holders complicated the process rather than making things a bit easier.
So I really think that the way of doing business post-crisis will change tremendously, some of the things that we were forced to do just to accommodate and be a matter of convenience I think will be the new way of doing business.
When a buyer receives their Title Deed online from DLD, when will the agent receive their commission and how is it communicated to them?
Once DLD receives all the payments, they will go ahead with the approval of property transfer and issue the new Title Deed to the buyer and then transfer all the payments to the respective parties (seller, trustee and agent) in accordance with the payment instructions.
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