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.
Expected Benefits
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.
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