A special department is to be set up by the Government of Ajman to regulate the booming real estate sector, Emirates Business has learned.
The new Ajman Development and Investment Authority is preparing freehold laws and will impose escrow accounts and strata regulations similar to those adopted in Dubai.
“Ninety per cent of work on creating a structure for the issue of property ownership documents, the registration of developers and setting up escrow accounts has been completed,” said a senior official.
“Ajman will duplicate the successful legislative frameworks and laws of Dubai. Property developers in Ajman will not be able to sell properties on maps prior to opening escrow accounts. Deposits will have to be deposited in these third-party accounts.”
Ajman’s real estate sector has grown rapidly since its launch in 2004. By 2006 the total value of investments had reached Dh25.2 billion and the announcement of a number of giant projects then pushed the total investment up to Dh120 billion.
Laws are necessary to support the booming market. Escrow accounts will protect the rights of buyers by preventing fraud or delays in the handing over of properties.
The new department will deal with disputes such as those related to finance and contractual obligations.
“Having property laws and regulations will help to maintain a reliable, stable and strong market,” added the official.
“A developer wishing to operate in Ajman should register with the department prior to starting any project in the emirate. The authority, which is expected to function under the Lands and Property Department, will not only propose legislation but will execute it and control the property market.
“A decree setting up the department is expected to be issued very soon.”
The amount in dirhams of the total value of Ajman real estate investments in 2006. This rose to Dh120bn, thanks to the announcement of a number of giant projects
Real estate law drawn up in Ajman