In a workshop held with a number of developers:
(WAFI): The rules of sale and leasing on the map came to regulate the sale of real estate units.
The Sale and Lease on The Map program, "WAFI," confirmed the keenness to organize the sale of real estate units on the map and preserve the consumers' rights. The developers are required to provide all the real estate project services for the sold units, including electricity and water and pay all the fees that are related to them. They also undertake to connect the unit to the public sewer network or to secure a suitable place for it.
All these information was discussed at a workshop held by the Sales and Leasing on The Map program,"WAFI," on Wednesday (31/1/2018) at the headquarters of Asharqia Chamber with a number of real estate developers. This workshop was dedicated to the definition of the regulation of the sale and lease of real estate units on the map. The workshop was presided by the head of the Housing and Urban Development Committee, Ridan Saafq Al-Duweish. Anas Al Mazroue, the Director of the Legal Department of WAFI, Moaz Al-Ghafaily, the Operations Manager, Salman Al-Mishaan, the Director of Engineering Department, and Fahad Al Saad, from the Communication Department, also participated on this workshop.
The speakers at the workshop defined the project that deals with the sale and lease of real estate units on the map for residential, commercial, investment, service, tourist, and industrial purposes. They pointed out that the unites offered for sale or lease on the map must be subject to engineering and legal supervision, and have a guarantee account for the project to deposit on it the amount that the buyers are going to pay. The regulation states that one of the requirements of a license to sell on the map is a feasibility study for the project in Arabic, approved by a specialized consultant office (including the estimated financial, construction and marketing data for the project, the cost and contract price of the unit, the expected financial and administrative expenses, In addition to the period of delivery of the units, the stages of implementation of the project, and the expected funding sources for the project.)
WAFI's rules also prohibit the real estate developers or marketers from receiving money from buyers, and deposit all payments in the escrow account allocated in the name of the project. They have to make sure that the mortgage rate does not exceed 5% of the value of the real estate unit, and the first installment payment does not exceed more than 20% of the total value.
The terms stipulated to include that "the period of the guarantee for foundation works, concrete work, and insulation works shall not be less than 10 years from the date of delivery of the real estate unit. And the guarantee period for mechanical and electrical works, and the works of other contractors shall not be less than one year from the date of delivery."
The WAFI program also required that in the new business, the deadline for the buyers should not be less than 60 days during the contract period, and that the notices or correspondence should not be verbal between the developers and buyers.
In the same context, the speakers said that the rules of work oblige the real estate developers to obtain a license to sell on the map through passing the program of rehabilitation of real estate developers.
They pointed out that if the real estate developers do not own the land of the project, the regulation obligates then to make a written undertaking from the owner of the land to comply with the provisions of the regulations, and the instructions of the committee, and to provide its requirements of the supporting documents, which ensures the safety of the work and continuity of the project after the license.
According to the regulations, after completing the reasons for the request and the preliminary approval of the committee, the Ministry of Housing requests the Ministry of Justice to marginalize the land's registry by not allowing it to be disposed of without the permission of the ministry. This marginalization will be removed after completion of the project and the start of sorting the real estate units.
The rules showed that the committee has the right to review, suspend or cancel the license in certain cases such as proving the insolvency of the developer and declaring bankruptcy, issuing a conviction for a crime that violates honor and honesty, violating the rules and regulations of the committee or not initiating the project without an acceptable excuse, and starting then stopping the project, which confirms the lack of seriousness in the implementation.
The regulations identify a number of offenses that require the referral of the perpetrator to the Bureau of Investigation and Public Prosecution such practicing unauthorized activity, providing incorrect information to the Committee, and when the legal accountant or engineering consultant provide false information or hide substantial facts in their reports on the project.
The regulation stressed the idea that the control staff, under the supervision of the Ministry of Housing, should conduct inspection tours and listen to complaints and communications by beneficiaries.
