UAE regulators warn against unapproved property swaps

UAE regulators warn against unapproved property swaps. (EB FILE)

Real estate regulatory agencies in the UAE have advised property investors to be cautious of initiatives and schemes offering swapping of properties between Dubai-Ajman and the US.

"Any marketing campaign involving Dubai real estate requires the prior approval of the Real Estate Regulatory Agency, as stipulated by Law No16. We have not received any request for such approvals from firms offering to exchange properties in Dubai for properties in the US," Marwan bin Ghalita, CEO, Rera, told Emirates Business through e-mail.

US-based investment company Robert Douglas (RD) Holdings had recently advertised in a local newspaper offering swap or exchange of Dubai-Ajman properties that are ready with "completed freehold" properties in the United States.

Ghalita warned investors who become involved in such property exchange schemes to do so at their own risk. "None of the ordinary safeguards are applicable [in such deals], or recourse to the protection offered by the law, by Rera or by the Land Department," he added.

Ajman Real Estate Regulatory Agency (Arra) Director-General, Omar Al Barguthi, said: "We advise investors to be extremely cautious about such 'exchange offers'. As a regulator, our top priorities are the interests of the UAE, helping to maintain the country's on-going economic growth and the protection of investors' interests."

Al Barguthi said companies offering "exchange options" have never approached the agency for prior approval.

 

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