(1888PressRelease)
August 25, 2008 - “This shows the government’s initiative to support the market sustainability. This positive move will boost both the investor’s and end-user’s confidence in the property market,” said Debbie Baertschi, Managing Director Engel & Voelkers Middle East, who has a rich background of banking and finance. “It also improves the business environment as the mortgage law is a necessity for a market to benefit from its solid growth.”
The 35-articles law includes all procedures concerning a mortgage and its legal effects on the concerned bodies, as well as execution procedures on the mortgaged property, and the relations between the mortgage issuer and the borrower. The new law makes all mortgage deals that are not registered with the Dubai Land Department null and void, allowing the department to better regulate property and mortgage transactions.
The mortgages on properties in Dubai, should henceforth be provided by registered financial institutions and be insured. The borrower and the lender will have to present complete financial documents for registration of the mortgage with the Dubai Land Department. The provisions of the law will be applied to properties for mortgage as property insurance with no difference between full towers or units.
The law excludes properties granted by the government to UAE nationals, for residential and commercial purposes, as those are monitored by the orders and instructions issued by the Ruler.
The law, which will take effect 60 days after its publishing in the official gazette, stipulates the invalidity of any property contracts that are not registered with the department.
About Engel & Voelkers:
Founded in 1977, Engel & Voelkers Group opened its first Middle East office in 2004. One of the world’s leading real estate companies, the brand is known a marketer of high-class residential property in top locations. The global Engel & Voelkers network now covers 24 countries on 4 continents and more than 330 property shops. Serving private and institutional clients, Engel & Voelkers’ core competencies lie in consultancy, leasing, sales and valuations. The group is basing expansion on its successful licensing partner model and has now over 440 licensed partners. The keys to success are specialization in sub-markets and the excellence of the group’s partners and highly-qualified employees – a combination that produces top quality service.
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