5 mins to read,
April 22nd, 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
Are digital signatures accepted for tenancy contracts?
Yes, electronic signatures on tenancy contracts are accepted and honoured.
We now we have a digital way for the registration of the Ejari through the Dubai REST application and it’s as simple as the actual landlord accessing the Dubai Brokers or REST app, by putting in either his/her phone number or the Title Deed number of the property. And then from there, it’s a step-by-step process. And in terms of the actual tendency contract, people can now send it as an attachment as a PDF attachment get it signed uploaded send it to the other party. So there’s no need now for the Brokers to have to go from one person to another in order to get the actual physical signature. These signatures as I said as a PDF or as electronic signatures are accepted and honoured by DREI in case there’s a need for this matter to go into disputes.
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.
Published on
