His Highness Sheikh Humaid bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman, issued Law No. 2 of 2020 regarding the regulation of real estate development in the Emirate of Ajman, which includes seven chapters and 70 articles.
And the law stipulated in its first chapter – after the general provisions and tariffs – that it be applied to real estate development projects in the emirate in which real estate units are sold on the map, whether they are licensed before the implementation of this law or that are licensed after its enforcement, including real estate development projects located in the regions Free in the emirate.
The law aims to regulate real estate development projects in the emirate to create a safe investment environment in the field of real estate development and to achieve a fair balance between the interests of both the developer and the buyer, and to provide transparency and enhance the emirate’s competitiveness in the real estate sector.
The second chapter in its articles included the real estate developers permit, where the license to practice real estate development activity is issued by the competent authority based on a permit from the department, and the issued statement does not excuse that the developer must obtain any licenses, permits or other approvals required by the competent authority to enable him to start his business.
The articles also included the register of real estate developers. A registry for the registration of real estate developers in the emirate called the “Register of Real Estate Developers” is created by this law. The Director General issues a decision specifying the form of the register, the registration procedures, the duration of the registration and renewal, and it is prohibited for any legal person to engage in real estate development activity except in the emirate. If it is registered in the stipulated record and the developer must notify the department of any change in data and information related to it that entails amendment in the register of real estate developers, within 30 days of the change occurring.
The law specified the conditions for registering real estate developers, which is required for the registration of the real estate developer in the register of real estate developers to provide a copy of a valid commercial license issued by the competent authority and the company’s founding contract and amendment annexes if any and proof of financial solvency in accordance with the criteria and controls approved by the president and a written commitment to register the real estate development project in the registry Real estate development projects during the first year of registration and any other conditions determined by a decision issued by the general manager.
The law obligated the developer to implement the real estate development project in accordance with the approved engineering designs and the specific timetable for its completion and implementation of the infrastructure and services necessary for the works of the real estate development project and informing the buyers of all data and information related to the real estate development project and the real estate units sold to them including the rights and restrictions resulting from them and notifying them of any changes in these Data and information, registering the real estate unit in the name of the buyer with the department in the real estate registry designated for that, delivering all the certificates, bonds and documents related to it, operating guides and guarantees for the devices and installations for that real estate unit, handing the buyer the real estate unit, including all the services that enable him to use it, and keeping commercial books and accounting records in accordance with the approved accounting standards In the state.
The law also included removing the registration from the register of real estate developers in accordance with a decision from the general manager in cases to submit an application from the developer and revoke the commercial license from the competent authority or the issuance of a final ruling of bankruptcy and failure to register the real estate development project in the registry of real estate development projects during the first year of registration and does not result in Cancellation of the registration of the developer from the register of real estate developers, exempting him from liability of any kind towards the department or others.
The law also mandates that the developer, the consultant, and the contractor, when practicing their business, disclose to the department in writing whether they have a direct or indirect personal interest that conflicts with the requirements of their work or any other data required by the department, and the consultant, contractor, or sub-contractor may not be the same developer Or that any of them have a direct or indirect interest with him, provided that the President issues a decision regulating all issues related to conflicts of interest, data and information that must be disclosed to the department.
The law specifies real estate development projects and the regions and lands in which real estate development is permitted in the emirate by an Emiri decree issued by the ruler. The real estate development project license may not be issued by the competent authority except in the regions and lands where real estate development is permitted in the emirate in accordance with the decree stipulated.
According to this law, a register for the registration of real estate development projects called the “Register of Real Estate Development Projects” shall be established with the department that includes the procedures for registration in it and the duration of the registration and renewal. Real estate in the stipulated record and the sale of real estate units in the real estate development project that is not registered in the real estate development project record shall be considered invalid.
The law specifies in its articles the conditions for registering the main and subsidiary real estate development project in the register of real estate development projects by submitting the title deed of land separated in the name of the main developer and allocated for the main real estate development project free of any in-kind rights and all engineering plans approved by the competent authority and the technical specifications approved by the consultant for the development project The real estate and the main complex management system for the real estate development project, a copy of the agreements related to the real estate development project concluded between the main developer and the sub-developers, if any, and the economic feasibility study of the main real estate development project and the financing plan for the main real estate development project.
The conditions for registering the sub-real estate development project in the record of real estate development projects also included a detailed program of construction and architectural works and services work related to the sub-real estate development project and the stages of its implementation and any arrangements or division for this project and a study of the economic feasibility of the sub-real estate development project and a letter from a consulting engineer licensed to determine the estimated value of the development project Sub-real estate and the financial flow of the stages of completion of the sub-real estate development project in accordance with the approved timetable from the consultant and the sub-real estate development project financing plan and any other conditions that are necessary for registration, determined by a decision issued by the Director General.
The law includes its chapters and articles in detail.
Real estate development project plans and prevention of disposal in the real estate development project land and facilities for the developer and real estate survey, real estate development project financing plan, implementation and completion rates, mortgage of the real estate development project, the main complex management system, building management system, and cancellation of the real estate development project.
The law also dealt in detail with the sale of real estate units on the map, the permit to sell real estate units on the map, the terms of the permit to sell real estate units on the map, the announcement of the sale of real estate units on the map, the property unit reservation bill, the real estate unit reservation document, the effect of real estate unit reservation, the unified sale contract, annexes to the real estate unit sale contract and prohibitions The reservation voucher, the standard sale contract, the language of the reservation voucher, the unified sale contract, the registration of the sale of the real estate unit in the initial real estate registry, the registration of the real estate unit in the final real estate registry, administrative expenses, the project completion certificate and reservation of the maintenance percentage.
The law touched on the escrow account in terms of the escrow account registrants and the conditions for registering the escrow account secretors and opening the escrow account and the escrow account agreement and depositing the price in the escrow account and the exchange from the escrow account and the minimum exchange and profits from the escrow account and the coverage of the escrow account and closing the escrow account and the right of the buyer to see and right The buyer has no right, the buyer’s right to act, the buyer’s right to withhold the due payment, the buyer’s right to receive the real estate unit, the buyer’s right to cancel the sale and compensation contract, the buyer’s right to compensation without breaking the sales contract, the developer’s responsibility for the defects, the buyer’s failure to make the payments and returning the payments made to the buyer.
The law stressed through the final provisions on the necessity of checking real estate development projects, seizing or executing real estate development projects, escrow account, reviewing records and stalled real estate development projects, fees, violations, fines, and the characteristics of judicial seizure, grievance, organizational decisions and reconciliation of conditions.
Any text or provision that contradicts the provisions of this law shall be canceled and put into effect 30 days after the date of its publication in the Official Gazette
