Dubai Land Department (DLD), the chief regulator of Dubai real estate sector is always trying to take logical initiatives to provide better regulatory infrastructure for everyone involved in property transactions. The current announcement regarding mandatory enforcement of unified real estate contracts from May 1st 2014 is expected to benefit all three parties involved in any real estate deal; the buyer, the seller and the broker. Basic aim of implementing standardised property contracts is to better monitor emirate property market.
Standard contracts have already been published earlier in 2008 to proffer some level of regulation to asset market. Although, brokers were not bound to follow rather they were allowed to make their own choices to follow these standard contracts or not. According to the latest announcement by Director General of DLD, Mr. Sultan Butti bin Mejren, the mandatory contracts will also help to limit fake brokers and get rid problems occur because of lack of clarity and misinterpretation among parties.
The unified mandatory Dubai Real Estate Contracts
Having considered the in-depth analysis of DLD services for betterment of customers, authorities have identified the need of mandatory implementation of standard real estate contracts for proper organisation of relationship between parties involved in buying and selling deals of Dubai properties. The newly designed unified real estate contracts include three types of contracts, Form (F) a contract between seller and buyer, Form (A) a contract between seller and broker and Form (B) a contract between buyer and broker. All of these models are available to download from Dubai government E-mart website (www.emart.gov.ae). After that forms are filled by parties involved and contract becomes formal once it has recorded and documented at DLD. Consider executing their primary aim to enhance the transparency and professionalism of emirate real estate sector via measurable standards, the latest regulatory regime is perfectly aligned with their primary motif.
Furthermore, the new contracts are expected to improve the market confidence by speeding up the overall process of property transactions. The regulatory regime will also facilitate buying and selling asset in the emirate as it allows buyers and sellers to complete the registration process without an agent. This will give more freedom and reduce dependency of buyers and sellers upon real estate agents. Moreover, the regulatory move is welcomed by all property agents in Dubai. In addition to avoid misunderstandings of articles, the unified contracts will also guarantee the rights of all the stakeholders involved.
The primary aim behind such regulatory regimes is to avoid another property bubble by limiting sky rising property rents and prices in Emirate, which could lead market to experience another crash.