| 05 May 2008 |
|
UAE: Four developers under investigation
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Four Dubai development companies are being subjected to an "internal audit of transactions", Marwan bin Ghalita, the CEO of Real Estate Regulatory Agency (Rera)Real Estate Regulatory Agency (Rera)
told a Dubai Property Group meeting on Sunday. "We cannot let people promise and not deliver in Dubai," he said.
"We want a transparent relationship between parties and have rules and regulations that will be strictly implemented."
He declined to name the four Dubai developers under investigation.
Last month Damac Properties was involved in a controversy over an attempt to cancel its project Palm Springs on The Palm, Jebel Ali, which has since been reinstated. ReraRera
has a tough job regulating Dubai realty since its creation last July. Now 2,909 real estate agencies are registered and an estimated 4,000 more illegals in the marketplace have until the end of July to register or face fines. "From November 1 only licenced agents can advertise property by law," said Bin Ghalita. "We will not tolerate freelance agents."
ReraRera
has also licensed 710 development companies, 1,560 projects and 1,487 brokers since its formation, and opened 476 trust accounts worth more than $1.2 billion (Dh4.4bn) with 33 registered banks. "We also want to correct some misleading claims made by developers," said Bin Ghalita. "If developers say they sold out in half an hour, how is that possible? If this is advertised they must show data, and not keep us waiting for a month for it."
In addition, Bin Ghalita said there must be no payment of percentage transfer fees to developers, who are only entitled to claim administration fees for handling such transactions. "Why should developers benefit like this? It is not their business, we do the transfers."
He said buyers and sellers should "refuse to pay extra transfer fees".
Bin Ghalita said the proper registration fee is a total of two per cent: one per cent for the buyer and one per cent for the seller. "Nobody has the right to charge anything else, and please tell me if they do," he added.
By Peter Copper
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