Ajman has imposed a deadline of May 1st for developers who plan to sell pre-construction properties to register. Ajman hopes to contain some of the problems with pre-construction sales that have recently been plaguing hot real estate markets like Dubai. For more on this, read the following article from Property Wire.
Developers and master developers in the Gulf emirate of Ajman have until the first of May to register to sell off plan properties or find themselves operating illegally.
The recently formed Ajman Real Estate Regulatory Agency said that there will be no extension to the deadline and no exceptions to the rule.
It says there is still time for developers to register on a preliminary basis even if they do not have full documentation in place as this gets them into the system by the deadline. "We will complete their registration but we will not be considering any applications after May 1," said ARRA director general Omar Al Barguthi.
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"Anybody failing to register with before May 1 will be considered to be operating in Ajman in violation of the Emiri decree and will face penalties from a minimum of Dh100,000 onwards," he added.
ARRA is also clamping down on the misrepresentation of facts or giving false information through advertisements. "We have already penalized a few developers for giving false information in advertisements. Anyone who wants to publish advertisements will now have to get an approval number from us, which has to be published in all their ad campaigns," explained Al Barguthi.
Payments through escrow accounts are now mandatory for all developers. Ajman Bank is offering the escrow bank facility in the emirate.
Al Barguthi said that the agency aims to create a safe property investment climate and appropriate real estate business environment in Ajman. "Registration will be an advantage for both developers and investors alike," he said.
Ajman’s burgeoning property construction market includes some of the most high-profile UAE developments outside of Dubai which already has the Real Estate Regulatory Authority.
Ajman’s property market is not as internationally recognized as Dubai’s but the state was the second in the UAE to offer freehold property after Dubai.
This article has been reposted from Property Wire. View the article on Property Wire’s international real estate news website here.