New Property Law in Abu Dhabi

After over seven years of deliberations, investigating and drafting, Abu Dhabi has at long last distributed the new property law in plans to better manage the emirate's real estate market.
Taking after are the principal procurements of the new law which all gatherings ought to know about:


Section one of the law characterizes a few imperative terms including: the real estate register, the interim real estate register, the real estate development register, land improvement ventures, escrow records, off-arrangement deals, administration charges and community charges.

Dependable Authority

The law approves Abu Dhabi's Department of Municipal Affairs("the DMA") to:

  • Compose and add to the real estate division in Abu Dhabi
  • Direct and control all viewpoints identified with the division and direction with districts in such manner.
  • Execute the law, issuing licenses, controlling escrow accounts and crossing out real estate projects. 
Authorizing and Registration

The types of substances or persons that are permitted to get a license to take part being developed related activities are:

  • Expert developers and sub-designers.
  • Brokers and their workers.
  • Proprietors' affiliation managers, appraisers and surveyors.

The law organizer two new registers: Real estate development register and the interim real estate register. Both registries will both be kept by DMA and designers won't be permitted to take part in real estate development unless they have been enlisted in the real estate development register. Furthermore, any transfer of off-arrangement units that hasn't been enlisted in the meantime enroll won't be legally binding.

Off-Arrangement Sales

Regulation of off-arrangement deals is one of the foundations of the law. This is the place the buyer is granted real estate rights over a property that was inherent agreement with floor or complex arrangements:

A developer is not permitted to auction units arrangement unless it demonstrates that it possesses a land directly over the task land and that it has opened an escrow represent the undertaking.

The law incorporates prerequisites for opening an escrow account and paying cash from the escrow account.

The law precludes developers from gathering enlistment expenses from speculators, and just permits designers to charge authoritative expenses, which should first be affirmed by the DMA.

Where there has been a gross rupture of the agreement by the designer, the financial specialist may have the capacity to end the off-arrangement deal contract.

Result: This ought to bring about lower expenses for buyers. The law additionally ensures investors by obliging designers to enlist units sold off-arrangement then land register.

Real Estate Financing
  • The law permits units sold off-arrangement to be sold just if:
  • The advance sum is paid into the applicable escrow account.
  • The advance is allotted for installment of the price tag.
  • The designer is disallowed from selling the venture area or any related land right unless it is with the end goal of financing development of the undertaking.
  • The buyers of the units must be informed of the home loan by the designer.

Results: These new procurements on home loans will resolve the issues that banks face regarding land financing.

Proprietors' Associations

The new law incorporates supplies for setting up proprietors' affiliations, including every one of the proprietors of units in multi-unit real estate developments. Proprietors' affiliations will be in charge of the administration of those regular parts.

  • Any person who conducts the activities of real estate brokers, owners association managers, appraisers and surveyors without having an appropriate license from the DMA may be punished by imprisonment or a fine of not less than 50,000AED and not exceeding 200,000AED.
  • Any person who conducts real estate development activities in the Emirate of Abu Dhabi, fraudulently markets off-plan units for sale, or does not deposit the required funds into the escrow account may be punished by a fine between 100,000AED and 2,000,000AED.
  • The DMA may cancel licences, if a licensee violates provisions of the law and the executive regulations or if the licensee is not performing its obligations properly in the opinion of the DMA. 
  • A developer may be removed from the development register if, among other things, it fails to commence construction within six months of the date on which it has received approval to sell off-plan units.
  • The DMA can cancel a real estate project if the developer fails to start building the project within six months from the agreed commencement date or if it fails to complete the project within the agreed timeframe.
  • Any individual who directs the activities of real estate brokers, proprietors' affiliation administrators, appraisers and surveyors without having a proper permit from the DMA may be rebuffed by detainment or a fine of at the very least 50,000AED and not surpassing 200,000AED.
  • Any individual who leads real estate development activities in the Emirate of Abu Dhabi, deceitfully markets off-arrangement units available to be purchased, or does not store the required assets into the escrow record may be rebuffed by a fine somewhere around 100,000AED and 2,000,000AED.
  • An developmentmay be expelled from the development register if, in addition to other things, it neglects to start development inside of six months of the date on which it has gotten endorsement to auction arrangement units.

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