Khalifa issues real estate law
His Highness Sheikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi, has issued Law No. 3 for 2015 regulating the real estate sector in the Emirate of Abu Dhabi.
The law, published in the official gazette issued on June 30, 2015, which is released by the General Secretariat of the Executive Council in Abu Dhabi, comprises 90 articles.
According to Article 2 of the law, the Department of Municipal Affairs will be entrusted with the tasks of regulating and developing the real estate sector in the emirate, monitoring and supervising all the matters related to this sector and coordinating among municipalities in this connection.
Article 3 thereof stipulates that the department will organise the appropriate administrative structure for exercising its powers and carrying out its tasks under the provisions of this law. The administrative structure will be submitted to the Executive Council for approval.
Article 5 stipulates that unless licensed by the department, no person may be engaged in any activity as a developer, broker, vendor, assessor or surveyor etc. Article 6, however stipulated that all those licensed developers, brokers, vendors, assessors and surveyors will have to abide by the provisions of the professional code of conduct issued by the department under the provisions thereof.
The rights and obligations of brokers and the roles and obligations of assessors and surveyors are stated under Article 7.
The law also deals with the conditions for selling real estate, performance bonds, the rights of depositors, legal effects of mortgages, waivers, early settlement fines, joint properties, pre-emption provisions, fees, penalties, violations and code of conduct.
Article 90 stipulates that the law will be published in the official gazette and will take effect after 6 months from the date of publication.