6.25 PM Thursday, 28 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:57 06:11 12:27 15:53 18:37 19:51
28 March 2024

Arra's role to be specified in sales and purchase deal

Omar Al Barguthi, Director-General of Arra, and Yousef Saleh Khalaf (left), CEO of Ajman Bank, in a function held in Ajman yesterday. It became the first bank to offer escrow account facility for developers. (CHANDRA BALAN)

Published
By Parag Deulgaonkar

Sales and purchase agreements in Ajman will incorporate certain clauses that will specify the role and jurisdiction of Ajman Real Estate Regulatory Agency (Arra), a top government official said yesterday.

"We will incorporate certain clauses such as Arra to be the regulator for every contract, or it will be the reference for any disputes, etc," agency's Director-General Omar Al Barguthi told Emirates Business.

The agency, which is making it mandatory for developers and master developers to register with it, is also advising customers to make payments only through the escrow account.

Ajman Bank became the first bank to offer escrow account facility for developers.

Although Arra is not yet aware of the total number of developers or value of projects in the emirate, it is more focussed on knowing the status of the projects.

"At the end of the day, all the developers want to register, but it is just the matter of getting their formalities and documentations in place," Al Barguthi said.

In an effort to regulate the market further, documents of developers will be processed in Ajman Municipality only if they are forwarded by the agency.

"We have stopped all documentations in municipality unless he [the developer] comes through us," he said.

According to Al Barguthi, the market is going through a "correction" phase. "It will be healthy for the market to take place and offers a golden opportunity for everyone, who can see and predict the potential in what's happening."

Asked if the government will buy more master developments that are in distress, Al Barguthi said: "Marmooka project was in partnership and it was a purely commercial decision. We are not in the position to decide for the government, but if they see the reason that it is commercially viable, then they may do it."

However, Arra is not the entity to decide or suggest government on decisions of buying master developments, he added. In February, the Ajman Government took control of the Marmooka City development, buying share of Marmooka Capital for Dh800 million.

On the federal residency visa issue, Al Barguthi said he is not aware of the technicalities of the new unified visa, but expects an announcement soon.

He, however, suggested that it should be three-year residency visa which is reviewed every six months.

Developers told this newspaper last year that they were selling properties with the clause of residence visa still being there.

"The visa clause was applicable then, but now no one can grant visas," the agency chief added.

Al Barguthi told this newspaper last month that Arra was planning to set up a dispute resolution committee to look into issues relating to the emirate's real estate sector. "Right now disputes are being solved on an individual, case-to-case basis. However, the new committee that will be set up would handle all civil cases in the real estate sector in Ajman. We will combine a group of experts who will look into the cases, and we will have the final say," he said.

Ajman opened up its freehold property sector to foreign nationals in 2004. The law allows non-GCC developers and buyers to own freehold land and property in designated areas determined and approved by the emirate's ruler.


Arra monitors activities in Ajman property sector

In January, His Highness Sheikh Humaid bin Rashid Al Nuaimi, Supreme Council Member and Ruler of Ajman, issued a decree to establish Ajman Real Estate Regulatory Agency.

The agency will enjoy financial and management independence. It will approve banking and financial establishments to manage escrow accounts in line with the emirate's legislations.

It will also monitor and supervise owners' associations, checking their accounts and records. The agency will aim to regulate activities in Ajman's real estate sector, frame policies and set up a legal framework for the licensing of real estate projects.

Besides, the agency will license real estate developers, and monitor and supervise their development activities in the emirate. It will also keep records of projects and in the real estate project register.

Monitoring real estate adverts published in media channels is also part of the mandate.