Resolution No.30 of 2013 prescribes fine to be double of the prescribed fees
Update: The deadline for registration of all units sold in Dubai has been extended to October 31, 2015, from June 30, 2015, according to a circular issued by Dubai Land Department on Thursday.
With mere five days remaining for the deadline (June 30, 2015) for property owners in Dubai to register their units with DLD), developers are making last efforts to get owners to comply with the new regulation.
Real estate developers are reminding buyers through emails and public notices to register their respective units (off-plan or completed) by paying 4 per cent of the unit’s sales value as registration fee.
Orra Real Estate Development, a Dubai-based developer, has issued a public notice, asking investors and purchasers in its Corporate Tower in Jumeirah Lakes Towers to comply with the DLD directive.
“This is to inform you that DLD has implemented a new regulation that all registration charges of 4 per cent are payable upfront by the end user against their respective units instead of the earlier provision of payment on completion and has given the deadline of June 30, 2015, to complete the said payment, failing which heavy penalties will be imposed by DLD on the end users,” it said.
“We kindly request you to make arrangements in compliance with the law and to proceed with the payment of 4 per cent against your unit(s) to DLD to proceed and secure the registration of your unit(s) to meet the deadline of June 30, 2015. It is advisable to complete the payment as soon as possible in order to avoid last moment rush at the DLD registration counters,” the notice read.
The company further stated that any fee on the non-payment of 4 per cent fee and any penalties being imposed would be the responsibility of the end user.
In April 2015, Emirates 24|7 had reported on the June 30 property registration deadline.
From October 2013, DLD has doubled the property registration fee to 4 per cent from 2 per cent of the property value.
DLD rules out penalty – will apply law
In response to question by Emirates 24|7 on whether unit owners will have to pay 8 per cent in penalty, DLD officials said there will be no penalties, but the laws and regulations of Executive Council Resolution No. 30 of year 2013 will be applied.
Article (6) of the resolution states that “without prejudice to any severer penalty provided for by any other law, anyone who commits any of the acts stipulated in Article (5) of this resolution shall be fined with double the prescribed fees.
Article (5) reads that following actions shall be deemed as fees evasion: providing false data about the value of the real estate transaction; using any trick or way of whatever kind or nature to evade the payment of fees and doing any other act that would evade the payment of fees.
Property agents and unit owners, however, told Emirates 24|7 that owners, missing the deadline, will have to pay 8 per cent registration fee.
“We went to the DLD office to inquire about the penalties and we were informed that owners who fail to register within the deadline will have to pay 8 per cent fee,” claimed an investor who asked not to be named.
A senior executive with a top real estate brokerage firm also said unit owners, failing to comply with the regulation, will have to pay 8 per cent registration fee.