Abu Dhabi / Emirates Business
The Abu Dhabi City Municipality (ADM) recently held an induction workshop about the implementation of the new Real Estate Law No. 3 of 2015 regulating the real estate sector, and providing a clear ground and flexible processes aimed at securing the public interest, and safeguarding the rights of real estate customers.
The event targeted a number of relevant banks and property development companies.
The workshop was held as part of the keenness of the
Department of Municipal Affairs and Abu Dhabi Municipality City to streamline the real estate sector, and nurture a disciplined investment environment conforming to clear-cut standards addressing the needs of the market customers well as the real estate occupations. The law also reflects the intention of the municipal system to ensure the benefit of all parties and safeguard the rights of all stakeholders of the real estate industry.
The workshop was attended by representatives of property developers and all banks. According to the provisions of the new Real Estate Law No. 3 of 2015, which was put into effect from Jan 2016, the Department of Municipal Affairs and Transport in Abu Dhabi has become the new regulatory authority of the real estate industry in the Emirate. A central database has been built in the Emirate. According to the law, all projects where completion rate falls short of 70%, have to open real estate escrow account where sales proceeds will be deposited in this account. Payment has to be made in phases matching to the progress in the project works. The workshop covered an array of topics highlighted by the implementation phases of the real estate law, such as the property development projects, trading in such projects, and the registration of all occupation of relevance to the property development projects.
During the workshop a number of main and subsidiary property developers were registered as the projectâ€™s escrow accounts has become ready. A number banks have been licensed and endorsed as account trustees. The Account Trustees agreements were signed to start the implementation of the new Law.