Ajman Property Market - Part II- By: David Garner
In the first part of my Ajman property investment series we looked at the Ajman Property Market in general terms. We came to the conclusion that property in Ajman is certainly one of the property investment opportunities in the UAE to keep our eyes on.
In this, Part II of the three part series, we will look at the new property law in Ajman, giving you a greater insight into the nitty gritty of your potential property investment opportunities. The rules are now much more transparent since the legalization of freehold property ownership in Ajman.
Ajman Property Law
In 2002 the property market in Dubai opened up to freehold ownership of property for nationals and non-residents alike. Many believe this to be one of the major drivers behind the property market. The ruler of Ajman; His Highness Sheikh Humaid Bin Rashid Al Nuaimi, who is a member of the Supreme Council, has also now introduced the same for Ajman, making Ajman only the 2nd Emirate to allow freehold ownership of property.
Ajman property law is regulated under Decree No 7 and 8, 2008 which was put in place to regulate the property and land sector within the Emirate of Ajman. The regulation consists of 34 articles which sets out to legalize the process of Ajman property and land.
Non GCC (Gulf Cooperation Council) investors, home buyers and property developers are all allowed to own land and property on a freehold basis within specific areas of Ajman. These areas have been allocated and approved by the Sheikh. It is also possible to obtain property with a 50 year leasehold that is renewable in other designated areas of Ajman.
Registration within the Ajman property register is essential to ensure that your property investment in Ajman is safe, secure and it will be possible to pass the property on to your successors via a will.
The regulation and approval of land maps, fees, survey areas and property sectors is undertaken by The Department of Land and Property according the new law. It is also where you should register your property rights and long-term leasing contracts.
To buy property in Ajman is now very straight forward, as Ajman has modified Dubaiís Law No. 8 of 2007 on Guarantee Accounts of Real Estate Development (Escrow Account or Trust Law). ensures that Ajman property purchases can now be conducted easily and without any major problems.
The introduction of bank guarantees has helped to safeguard the investorís capital; showing that Ajman has certainly streamlined the buying and investment process for property in the Emirate. This is always a factor considered by both private and institutional property investors.
The law means that property developers have to spend clientís funds ONLY on that development for which they are supposed to be for and the money cannot be used for anything else. This is a very nice addition to the security of investment into Ajman properties.
The bank will also hold back and essentially freeze 5% of the total project funds until completion of the building. After handover to the new owner, the developers themselves will be responsible for the maintenance of the building for the next 10 years.
Keep an eye out for part 3 or our Ajman series where we will cover current developments in the emirate as well as infrastructure news.
Article Source :
Author Resource :