Ajman real estate regulator unveils new guidelines

DUBAI — The Ajman Real-estate Regulatory Agency (ARRA) on Monday introduced new guidelines that link payments to construction.

By (Staff Report)

Published: Tue 31 Aug 2010, 11:08 PM

Last updated: Mon 12 Aug 2024, 3:49 PM

The ARRA said it has completed the rules and guidelines concerning sale and purchase agreement (SPA) annulment and the terms and conditions that are required to terminate the contract between the developer and investor, when the contractual obligations by any of the parties is violated.

“The regulation represents a set of rules and guidelines which cover the issue of SPA’s termination, and disputes between the investor and developer,” ARRA Director-General Omar Al Barguthi said in a statement.

The rules and guidelines include number of articles that require the parties to adhere to the provisions of the Amiri Decree No. 8 of 2008, including Article 14 / 3, which states: “The real estate developer shall be obliged to ensure that the payment of the installments of the purchase price of Any Real Estate unit shall be consistent with the progress achieved in the construction of the relevant investment building , and that such construction is in accordance with the execution program submitted by the respective real estate developer to the Agency, the Agency shall have the right to take any measures, as it may be deem appropriate for observing the compliance by the real estate developer of his obligations  here under.”

ARRA chief said, “The rules and guidelines will help minimising SPA’s termination claims and controlling dissolution of the contracts between developers and investors as the new regulation links payment with construction progress,” adding that “It will also help both the developer and investor to reach amicable settlement that would balance and harmonise the contractual relationship between the concerned parties.”

· —abdulbasit@khaleejtimes.com