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May 07 2009

Arra fines developers for failing to register on time

Developers in Ajman, who have failed to meet the May 1 deadline for registration, will now have to pay a fine of Dh100,000 per month, the emirate's real estate regulatory body said.

"We have earlier stated this information in news reports that developers not registered with us are required to immediately embark on the registration process before May 1 deadline ends," said Ajman Real Estate Regulatory Agency (Arra) Director-General Omar Al Barguthi.

In April, Emirates Business had reported that developers and master developers failing to meet the May 1 deadline on registration will not be able to sell their properties "off plan" and will be considered to be in violation of the Ruler's Decree.

"Anybody failing to register with us before May 1 will be considered to be operating in Ajman in violation of the Emiri decree and will face penalties from a minimum Dh100,000 onwards. There will also be a criminal part to it such as selling a 'fictitious project'," Al Barguthi had said.

However, Arra will consider cases of developers who have been prevented to meet the deadline due to circumstances beyond their control and may exempt from demurrage.

The agency has informed investors that they need to pay all monies due to the developer through an escrow account, with developers required to open up accounts with agency listed banks.

In January, His Highness Sheikh Humaid bin Rashid Al Nuaimi, Supreme Council Member and Ruler of Ajman, issued a decree to establish Arra.

The agency aims to regulate activities in the emirate's real estate sector.

By Parag Deulgaonkar

© Emirates Business 24/7 2009

© Copyright Zawya. All Rights Reserved.


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