I purchased a completed apartment from a developer in July 2021 for Dh2.9 million and took possession of the unit on October 8 last year with a payment plan that I have since completed.
I paid Dh4,241 last September for pre-title registration fees. Now that the unit has been fully paid, the developer is demanding that I either pay them Dh3,000 or Dh4,200 to the trustee office for title registration.
I bought an off-plan property from another developer for Dh4.9m, but was only charged Dh1,095 for Oqood registration.
I am trying to get the title deed of the first apartment registered in my name as soon as possible because I plan to sell it.
The Dubai Land Department told me to contact the trustee office for clarification about fees. However, the trustee office said they have no control over registration fees and they are at the developer’s discretion.
Shouldn’t such fees be standard and established by the DLD? How can developers arbitrarily assign fees for title registration? EF, Dubai
The DLD is trying to streamline the way property is bought and sold in Dubai and despite some hurdles along the way, it is winning in its approach to making the process as easy and hassle-free as possible.
I agree with you that going forward, all developer registration fees should be standardised so that there is full transparency.
Having said this, we sometimes encounter situations that do not seem to be fair. Fees solely set by developers are one such anomaly.
Under normal circumstances, all eventualities ought to be covered by the sales and purchase agreement (SPA), which you presumably signed at the point of initial purchase.
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This document should outline what charges are levied and at what point they will become due. If no such information exists in your SPA, I would challenge the developer to justify these fees.
To sell the unit, you need the title deed to be in your name. If you are getting nowhere despite confronting the developer, you have to move on.
Such developers can deceive you once, but not twice. You must have learnt an expensive lesson for any future off-plan purchases and from who you will buy from.
How much is a tenant entitled to receive in compensation if the landlord evicts him and, instead of moving in, rents the property to a new tenant? FL, Dubai
Should a tenant win a judgment from the Rent Dispute Settlement Committee (RDSC) in the example you cited, it has been seen in the past that judges offer the annual rental amount as compensation. Often, the fees are also included in the award.
However, no two cases are necessarily the same in terms of the compensation granted.
It is always up to the presiding judge to award whatever he or she sees fit based on the specific case and circumstances.
I moved into a rented apartment in April 2021. However, the landlord wanted to sell the property and issued a 12-month notarised eviction notice in November last year.
I renewed my rental agreement for 12 months in April this year. However, my landlord has found a buyer for the apartment and wants me to vacate by November 2022.
Am I legally entitled to stay in the apartment until April 2023 or should I vacate the unit as per the original notice? AM, Dubai
The reality to all of this is about negotiating with the parties. I suggest you speak with the new buyer to ascertain why they bought the property.
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Was it as an investment to rent out or was it bought to live in? If it was bought to rent out, the new owner cannot evict you in order to find another tenant. The new owner must respect your current contract.
However, if the new owner wishes to move in themselves, it has been seen in cases at the RDSC that some judges request the new landlord to send a separate 12-month eviction notice.
The likelihood is that you will be able to stay until your tenancy expires in April 2023 or potentially stay longer if you negotiate with the new buyer.
Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years, in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million