Emirates City Forum

I thought it will be useful to put this here as well..in case some of you have not read it from Arra website...

1 - Does ARRA register residential units?

No, not at this stage, however, registration of residential and commercial units will be mandatory once officially announced in the UAE main news papers.

2 - What are the documents required for the registration of a project and how much fees? And how long it takes to issue a registration certificate?

The followings are the documents and paper work required for the registration of a project:

• Plot registration certificate from AJMAN LANDS DEPARTMENT or affection plan from AJMAN MUNICIPALITY&PLANNING DEP.

• Construction plans, approved by the Master Developer, Ajman Municipality and Planning Department.

• Feasibility Study issued by the project consultant, including construction cost, contractor’s agreement and marketing estimated cost (not over 5%).

• Original reservation form

• Original sales and purchase agreement (SPA).

• List of sold units including names, unit details and amounts received from the buyers.

• Land cost as per the purchase agreement.

• Construction status and the completion phase approved by the project consultant.

• Name of the project approved by Ajman Municipality& Planning Department.

• Registration fees for each project is AED 50,000

• 3-4 days if documents are complete.

3 - Does ARRA resolve disputes concerning rent of property units?

No, this is not part of ARRA’s responsibilities

4 - Is ARRA a Legal Authority?

No, ARRA is a regulator.

5 - How can ARRA protect the investors’ rights who bought properties prior the date the Agency was set up and whether ARRA is authorized to redeem the investors’ fund in case the project was cancelled?

• ARRA conducts comprehensive study for all projects being carried out in Ajman in case to case basis, taking into consideration all aspects including a possible cancellation of certain projects,

• However, redeeming investors’ monies is a process which requires court decision. All real estate projects entirely or partially sold prior or after the establishment of ARRA are subject to the provisions of the related-Amiri Decrees.

• Protection of the investors’ rights is the top priority for Ajman Real Estate Regulatory Agency.

6 - What are the procedures to complaint against investor, developer or a broker and how long does it take to get a reply?

• Concerned party should present in person at ARRA’s customer service where identification document must be presented.

• No fees will be required for this service.

• Reply always depends on the nature of the complaint

7 - Can I submit complaints on behalf of my relatives or friends?

Yes, you can represent a friend or a relative if you provide "Power of attorney" certified by the Notary Public.

8 - To which Authority do I have to restore, if I invested with a Developer who is not registered , nor does he open ESCROW account for his project?

• You need to obtain “TO Whom It May Concern” letter stating that the developer is operating illegally in Ajman.

• Take a legal action.

9 - What is the action you take against developers who failed to meet the deadline requirements or failed to complete the registration process?

The developer will be required to pay AED 100,000 for each month until he is completely registered.

10 - What is an Escrow account?

Escrow, trust or guarantee account is the bank account of a real estate project opened in approved bank where all amounts received from off-plan sales or/and the project financiers can be deposited. Withdrawal from the Escrow account is permitted for construction purposes only.

11 - If amounts were deposited in an escrow account of approved project and that project set to be cancelled, how much money we get back and how long it takes?

• In order to find proper solutions to put the project back on track and to continue the construction work, ARRA conducts studies to find the reasons of the delay or stall of a project.

• Withdrawal from the Escrow account is permitted for construction purposes only.

• ARRA seeks to solve real estate-related disputes in a friendly way out of court.

• The court is the only authority to decide.

12 - Do you have a technical committee (Engineering Department) to monitor construction works of the projects and to make sure that developers meet the promised delivery timetable?

Yes.

13 - Is there a federal law in the UAE to regulate the real estate sector?

No. Currently each Emirate has its own law but they are almost identical.