No Dubai property registration? Dh10,000, 8% fee fine in effect
The Dubai Land Department has finally cracked the whip on investors who have not adhered to its repeated warnings of completing unit registration.
A notice, which is with this website, informs that investors who have not registered their transactions with the department will face fines of Dh10,000 to twice the fee prescribed, which means those who haven’t registered their rights with DLD will have to shell out 8 per cent registration fee instead of the regular 4 per cent registration fee.
Here is what the notice states:
Please take note that, effective April 17, 2016, the property registration services department will start applying and levying fines for not registering &/or delaying registration of property disposals and related real rights with the Land Department (sale, building sale, grant, building registration, mortgage, musataha, lease to own arrangement, usufruct, long term lease) &/or not paying or delaying payment of applicable fees in connection with such dispositions &/or not paying or delaying the transfer of received fees to the Land Department in accordance with the various circulars listed above, as per the following:
1 – The Dh10,000 fine prescribed in Article 3 of Executive Council Decision No. (6) of 2010 shall be levied on all disposals of property units occurring prior to 31.08.08 which were registered after the deadline stated in Article 3-2 of Law No. (13) of 2008 regulating the interim property register in the Emirate of Dubai i.e. after October 30, 2008.
2 – A fine equivalent to twice the fee prescribed in Article 6 of Executive Council Decision No. (30) of 2013 shall be levied on property disposals that are not registered with the Land Department &/or fees will have to be paid till April 16, 2016, as well as disposals that are registered after 60 days from the date of signing the reservation form or sale contract, whichever is earlier.
3 – A fine equivalent to twice the fee prescribed in Article 6 of Executive Council Decision No. (30) of 2013 shall be levied on real rights, long term leases, and lease to own arrangements in respect of properties which are not registered with the Land Department &/or fees will have to be paid till April 16, 2016, or which are registered after 60 days from the date of signing the contract.
In April 2015, Emirates 24|7 reported that developers were informing buyers/owners that DLD had implemented a new regulation that ensured all registration charges of 4 per cent were payable upfront by the end user against their respective units instead of the earlier provision of payment on completion and all had to meet the deadline of October 31, 2015, or face heavy penalties.
The department had told this website then that they would be applying the laws and regulations of Executive Council Resolution No. 30 of year 2013 in the case of violators.
Article (6) of the resolution states: “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) states: “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.”