ID card registration to be linked to visas

Abu Dhabi: Expatriates in Abu Dhabi and three northern emirates will soon be able to register for National Identity (ID) cards when they undergo the required medical tests for their residence visas, Gulf News learned on Wednesday.

The new system is expected to be in operation by the end of this year.

Dr Ali Al Khoury, Director General of Emirates Identity Authority (EIDA), said the move was part of the authority's new strategy for 2010-2013 which aims to complete the registration of about six million expatriates, who have not yet registered for ID cards, within three years.

Gulf News had earlier reported that Umm Al Quwain had linked medical tests for residence visas with the ID card registration process from May 30 this year.

"Our strategy is to complete enrolling all expatriates within three years [possibly by May 2013] since we started linking visa issuance and renewal process with the ID card registration," Al Khoury said.

Practical difficulties

Although a federal law stipulated that December 31, 2010 was the deadline by which all residents must have an ID card, the higher management committee of EIDA, consisting of senior federal ministers and higher officials, will investigate the practical difficulties in this regard, Al Khoury added.

The director general said the new move would be implemented gradually.

"We are studying the possibilities ... whether to begin in Abu Dhabi first or in three northern emirates — Ajman, Ras Al Khaimah and Fujairah," Al Khoury said.

The official said EIDA had rented commercial space near the primary medical centre in Mussaffah, with a view to the new process of linking medical tests for residence visas with ID registrations in Abu Dhabi.

"After undergoing a medical test, the visa applicants can complete the process only after registering for ID cards," Al Khoury said.

A single application for an ID card, residence visa and labour card would be introduced in the future when the three documents would be integrated as part of a new strategy, the department said.

Cancellation of sale and purchase agreements for off-plan properties in Dubai

The recently published Executive Council Decree No. 6 of 2010 changes the way in which sale and purchase agreements (SPAs) for off-plan properties in Dubai can be cancelled. The decree supplements the provisions of Law No. 13 of 2008 which established a registration system for off-plan sales. Although the decree covers a range of important issues in this area, it is the articles that deal with the cancellation of SPAs that will be of most interest to purchasers of off-plan properties

Streamlining the notice procedure prior to the publication of the decree, in order to cancel a SPA, the developer had to notify the Land Department of a breach on the part of a purchaser. The Land Department would then serve on the purchaser a termination notice, giving 30 days for the breach to be rectified.

The decree subtly changes this relatively new process by allowing the developer to notify the purchaser directly, albeit with an obligation to copy the notice to the Land Department. There is still a requirement for the Land Department to notify the purchaser but the decree suggests that time for compliance will run from the date of the developer's original notice.

Therefore, a purchaser may have very little time from receiving the Land Department notice to remedy the breach or come to an arrangement with the developer to prevent a cancellation. Certainly, these changes streamline the cancellation process and call for even greater caution on the part of purchasers when faced with payment requests and notices from developers.

Retaining funds

As well as the notice procedure, the consequence of a cancellation by a developer has also been slightly varied by the decree. Following a cancellation, provided there has been some construction (or the lack of construction cannot be attributed to any fault on the part of the developer), the developer is entitled to retain certain funds, depending on the level of completion. Where construction is beyond 60 per cent, the developer may retain up to 40 per cent of the purchase price. Where the project is less than 60 per cent complete, the developer may retain up to 25 per cent of the purchase price.

The most notable change brought about by the Decree relates to cases where construction is beyond 80 per cent complete. Here, as well as the pre-existing right to sell the unit at auction to recover the amount due from the purchaser, the developer now has the option of cancelling the SPA and retaining up to 40 per cent of the purchase price.

There are express provisions in the decree allowing a developer to apply to the courts for an order to claim any shortfall between the amount it is entitled to retain under the decree and the amount that has actually been paid by the purchaser. Similarly, where an excess amount has been paid by the purchaser, there are provisions detailing how this excess should be returned to the purchaser.

Where construction has not commenced, the consequence of cancellation depends on whether the lack of construction is due to some fault on the part of the developer. Where there is no such fault, 30 per cent of the amount paid by a purchaser can be retained. However, if the developer is deemed to be at fault, no retention is allowed and the full amount paid must be returned. Although the decree provides a list of causes that are deemed to be outside the developer's control, and gives examples of negligent actions — the decision is ultimately determined by the Land Department based on the facts presented to it. It should be noted that the decree confirms that leveling works and installment of infrastructure will be deemed to be evidence of

construction having commenced for the purposes of determining the parties' financial liability on cancellation.

Limiting arguments

In summary, whatever the motivation of the Land Department, the result of this new decree has been a marked increase in the number of cancellation notices served, often with little or no regard for the underlying reasons for the purchaser's default. Although purchasers may dispute the validity of a developer's cancellation claim, the Land Department has issued an administrative circular limiting the arguments they will consider as constituting valid defenses.

Unfortunately, delays under six months, failure to complete infrastructure works and failure to provide previously promised finance are just a few legitimate reasons for purchaser's non-payment that are not included in the list of ‘approved' defenses. In those circumstances, while a purchaser may have strong technical grounds to dispute a cancellation, it seems that those grounds will not be considered by the Land Department and so the SPA will be cancelled, with the consequential retention of purchaser funds by the developer.

And so, while containing some important safeguards of purchaser's rights, mainly in relation to ongoing projects, in the area of cancellations the decree has simply encouraged developers to take advantage of a streamlined cancellation procedure with its limitations on possible purchaser defenses. In that regard, in Dubai's real estate game the playing field may still not be regarded as entirely level.

The writers are a partner and an associate at law firm Taylor Wessing

Bread to be sold by weight from October in UAE - Each KG to cost Dh2.50

Bread will be sold by kilogramme and not loaf across the country starting from October.Under the revised standardisation, bread will be sold Dh2.50 per kilogramme, significantly lower than current prices, reported Gulf News.Currently, bread is sold by loaf with prices starting from Dh2.

The newspaper quoted Dr Hashim Al Nuaimi, Director of the Consumer Protection Department at the Ministry of Economy as saying a team will rigorously monitor quality and prices of bread sold in the country.

The department has already informed all bakeries about the move. Bakeries will have to adhere to new specifications in moisture, dough and weight, he said.

Some bakers add more water to the dough so that bread gain weight although it reduces shelf-life.The new strandards, he said, is being implemented to ensure consumers get good quality bread at affordable prices.

Property Residence Visa in Dubai and other Emirates

The good old days, many expatriates who purchased property in select areas of Abu Dhabi, Dubai, Ajman, Ras Al Khaimah, and Umm Al Quwain were able to obtain three-year residency permits. In these cases, the property owners were sponsored by the UAE master development company they had bought from.

Visas with property in Dubai

Freehold ownership in selected areas of Dubai was first introduced in May 2002, sparking the real estate boom. In 2006 the emirate's three master developers - Emaar, Nakheel and Dubai Properties - facilitated the issuing of three-year renewable residence visas to owners under a special arrangement with the Department of Residency

The law

The law states, "If the homeowner has no alternative means of sponsorship for a residence visa, the first owner may be sponsored by your master developer (Nakheel, Dubai Properties or Emaar) for residency in Dubai, UAE, subject to the applicable immigration laws of the country."

However, the purchase of a freehold property does not automatically qualify for a resident visa, officials say. "There is no direct link between property ownership and residence visas. Developers should not lure investors to the property sector with promises of a residence visa."

Cannot work in UAE

Those who have purchased property in Dubai and qualified for a residence visa cannot work in the UAE on that visa. Furthermore, the visa is renewable every three years. If you bring your family to your residence in Dubai, then you will need to get a family residence visa. Dubai residence permits are issued by the Dubai immigration authority. Work permits are issued by the UAE Ministry of Labour. Just as with spouse residence permits, student residence permits, investor resident permits, they are all residence visas that allow the holder to live in the UAE. If the holder wants to work, then their potential employer must apply for a separate work permit from the Labour department

Restrictions

A person will not qualify for a visa of any type in the UAE if you are a citizen of Israel, have an Israeli entry stamp in your passport or if your passport is valid for only six months or less.

Change in Ajman

Until recently, Ajman also issued visas to freehold property owners. According to a report in Gulf News earlier this month, the Ajman Naturalisation and Residency Department has stopped issuing and renewing investors' visas for freehold property owners in Ajman.

Sharjah's stance

Sharjah allows expatriates to invest in land, villa or an apartment for a maximum 99 years, but has never issued residency visas to investors.

The number

All expatriate purchasers of freehold property in the UAE are only entitled to own it for 99 years.

If you think your property is going to get you a visa, think again.

Residency visas were put on hold or suspended in around mid-2008 for most/all Dubai and Ajman property purchases. From 01 June 2009, the UAE will implement a new system of residence visas for UAE property owners which supersede the old property investor residence visa that was valid in Dubai, Ajman, and Ras Al Khaimah (previously there was no residence visa based on expat property ownership in Abu Dhabi). "Article 33 of the executive regulations of the entry and residency law for entry and residency of foreigners", and a new article, number 34, will be included in the by-law specifying the conditions of the new visa.

UAE multi-entry visa valid for 6 months at a time, permits multiple entries to the UAE, Commonly referred to as a residence visa but not clear if that's the official term. The difference in terminology might be significant.

Property owner residence visa can be renewed indefinitely but the visa holder must exit the UAE and re-apply. The applicant can apply right away rather than wait for a month outside the UAE, according to information on 05 May 2009. When the multi visit visa issued to a property owner expires abroad, his/her visa will be renewed at the airport at arrival." Cost of six-month UAE residence visa is AED 2,000. Renewal cost is the same. Minimum salary requirement of investor is AED 10,000 per month, or equivalent. Not clear if income must be sourced only from outside the UAE - conflicting reports seen.

Property value must be at least AED 1 million. Appears to be based on purchase price (evidence needs to be shown) rather than original price or current market value. Medical insurance is required for investor and family members applying for residence visa under property ownership scheme.

Property must be complete, and title deed in visa applicant's name has been obtained. Joint property owners cannot apply for residence visa (in contrast to the previous system which allowed first named owner to apply).

Direct family members (spouse, children) can be included under the property owner's sponsorship. Not clear if primary sponsor must be male, if there is an maximum age limit for children, or if family members can travel in and out of the UAE independently.

Property must be of an appropriate size to house family members if applicable i.e. a family of 4 is unlikely to be granted a visa if the property is a studio flat (not that there are many studios over AED 1 million in the UAE).

Property residence visa holders under the previous system must change their visa to the new system from 01 June 2009 otherwise they will be regarded as being in breach of UAE immigration laws .Property owners (and family) might be required to have to have a medical test as with other residence visas (visitors with short term entry permits do not have to do a medical test).

Unknown if property residence visa holders can apply for UAE driving licenses, bank accounts, telephone connections, etc. Other residence visa holders can, and previous property residence visa holders could. If the new visa is a "visit" visa rather than a "residence" visa, then probably not. Employment while on a Dubai property residence visa

In simple terms, any type question about UAE visas for work and residence can be answered by asking two questions.

Does the applicant want to live in the UAE? If yes, they need a residence permit from the immigration department.

Does the applicant want to work in the UAE? If yes, then they need a work permit from the labour department.

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