Four developers under investigation in Dubai
Posted on 04 May 2008 with no comments from readers
Four Dubai development companies are being subjected to an ‘internal audit of transactions’, Marwan Bin Ghalita the CEO of the Real Estate Regulatory Agency told a meeting of the Dubai Property Group this morning.
‘We can not let people promise and not deliver in Dubai,’ he said. ‘We want a transparent relationship between parties and have rules and regulations that will be strictly implemented.’
He declined to name the four Dubai developers under investigation. But last month Damac Properties was involved in a controversy over an attempt to cancel its project Palm Springs on The Palm, Jebel Ali which has since been reinstated.
The RERA has a tough job regulating Dubai realty which was a laissez faire market until the creation of the agency last July. Now 2,909 real estate agencies are registered with RERA and an estimated 4,000 more illegals in the market place have until the end of July to register of face fines.
‘From November 1st only licensed real estate agents will be able to advertise property by law,’ added Bin Ghalita. ‘We will not tolerate freelance agents.’
RERA has also licensed 710 development companies, 1,560 projects and 1,487 brokers since its formation, and opened 476 trust accounts worth more than $1.2 billion with 33 registered banks.
It is quite a shock for the Wild West atmosphere of Dubai property. RERA is also asking members of the public with problems to contact them directly for assistance.
‘We also want to correct some misleading claims made by developers,’ said Bin Ghalita. ‘If developers say they sold out in half-an-hour, how is that possible? If this is advertised they must support it with data, and not keep us waiting for a month for it.’
In addition, Bin Ghalita said there must be no payment of percentage transfer fees to developers who are only entitled to claim administration fees for handling such transactions: ‘Why should developers benefit like this? It is not there business, we do the transfers.’
