Now property in Dubai is under close scrutiny by the Real Estate Regulatory Agency (RERA) which in turn has been recently formulated by Dubai Land Department. According to RERA, a Dubai property buyer has to keep the following points in mind before making an investment:
o The concerned property developer has registered with Real Estate Regulatory Agency. In such a scenario, s/he will be able to quote a registration number.
o The payments are to be made via escrow accounts with one of the banks/ financial institutions approved by RERA.
o The concerned property dealer has registered with RERA. In such a scenario, s/he will be able to show an Identity Card.
RERA is carefully implementing and monitoring the new trust accounts under the Law 8 regarding escrow accounts formulated in summer this year. By the year end, all existing property projects in Dubai will be registered under the new escrow account law.
The property market in Dubai has to make itself at ease with more regulations than ever in the coming months. Besides ensuring safer deals, the new law is aimed at creating a better capitalized scaffolding to manage a slowdown in the ongoing property boom in Dubai. This is indeed a positive step taken by the Dubai government in the best interest of all concerned with property market dealings.
The new law 8 and under it, the escrow accounts are meant to ensure that all deals are transparent and buyers' valuable investment is not misused by developers and/ or agents involved.