Host
There’s just so much more to hear. Download our podcast at DubaiI1038.com.
It’s Drive Live, and it’s time to welcome back Ludmila Yamalova to the Dubai Eye studios. Nice to see you.
Ludmila Yamalova
Good to be here as always.
Host
Good to have you here. We’ve got a lot to talk about today, Ludmila. We’ve got questions to get to from last week, and let’s start with the REST platform for real estate self-transactions.
I’ve heard about this, but I’m not entirely sure what it means. Apparently, it will make property transactions easier, especially for remote landlords who are not UAE residents. This comes into effect in 2020. That’s all I know—what else is there?
Ludmila Yamalova
Well, in all fairness, this is still just an announcement. The details will become clearer once the system is implemented in 2020.
The platform is called the Dubai Land Department’s Real Estate Self-Transaction Platform, or REST. It’s designed as a global virtual real estate platform for landlords. It allows them to list properties, manage transactions from A to Z, transfer title deeds, sign documents, and receive payments—all remotely.
In addition to managing transactions, it will also handle property-related payments, such as utility bills, service charges, and even deposits. This is a significant convenience because, currently, delays often happen due to the need for multiple NOCs (No Objection Certificates) from utility providers like electricity, district cooling, and internet providers.
Host
So, it sounds like this will streamline the process significantly, especially for landlords overseas.
Ludmila Yamalova
Exactly. According to announcements, 40% of property owners in Dubai are based outside the UAE. This platform allows them to manage property sales remotely without traveling to Dubai.
One interesting challenge it addresses is the issue of payment. Currently, property transactions require a manager’s check, which is difficult for non-residents who don’t have UAE bank accounts. REST should facilitate these payments, avoiding complications like having to fly to Dubai or appoint power of attorney for a third party to handle funds.
Host
Let’s take a call from Ahmed on line one. Ahmed, good afternoon.
Ahmed
Good afternoon. My name is Ahmed. I work as a commercial manager in property investment and real estate brokerage. My question is: if the REST system becomes mandatory, does this mean agents will no longer be needed?
Ludmila Yamalova
Not necessarily. Based on current announcements, the platform will not eliminate the need for agents, but their role might evolve. For instance, agents will still be necessary to manage property viewings, handle inspections, and provide access to properties for potential buyers. They may also act more as property managers, overseeing the transaction process.
This could be an opportunity for the industry to improve its services, increasing professionalism and transparency.
Ahmed
Interesting. Another question: will using the REST platform be mandatory, and will there be additional charges?
Ludmila Yamalova
Yes, based on announcements, the system will be mandatory. Regarding charges, while the exact costs haven’t been confirmed, any additional fees will likely be offset by the convenience and savings for remote landlords who no longer need to travel to the UAE or appoint powers of attorney.
Host
Thanks for your call, Ahmed. Let’s move on to Ali on line five. Ali, good afternoon.
Ali
Good afternoon. I’m a property owner in Dubai. I’ve had tenants who caused damage to my apartment, and I’ve successfully claimed damages in the past. However, recently, my claim was rejected because I didn’t provide a municipality report. Is this a new requirement?
Ludmila Yamalova
There’s no new law requiring a municipality report for such cases. However, judges can request specific evidence at their discretion. If no such request was made earlier in your case, you could appeal the decision, though it seems your case may fall below the appeal threshold.
For future cases, I recommend providing detailed move-in and move-out reports, including photos, to establish clear evidence of damages.
Ali
Unfortunately, I was told I can’t appeal because the amount is below the threshold.
Ludmila Yamalova
In that case, the best course of action is to repair the damages and use this experience to strengthen your documentation for future claims.
Host
Thanks for your call, Ali. Ludmila, let’s address a quick text: “How is VAT calculated on the sale of commercial property?”
Ludmila Yamalova
Commercial property sales are subject to a 5% VAT on the market value of the property. While the land department doesn’t collect VAT, it’s the seller’s responsibility to collect it from the buyer and pay it to the FTA.
There have been unconfirmed reports suggesting exceptions for rented commercial properties, but for now, VAT applies to all commercial sales, rented or not.
Host
That’s helpful. Let’s wrap up with a question from Fakhradin. Fakhradin, you’re on the air.
Fakhradin
Hi. My company won’t pay my leave salary before I go on vacation, citing company policy. I told them labor law overrides company policy, but they’re not budging.
Ludmila Yamalova
You’re correct—labor law supersedes company policy. The law allows employees to request leave salary before their vacation. However, enforcing this would require legal action, which might not be practical depending on your circumstances.
If it’s a significant issue, you could escalate it to court or consider leaving the company if this is part of a larger pattern of non-compliance.
Host
Thanks for your call, Fakhradin. Ludmila, it’s always great to have you on the show.
Ludmila Yamalova
Thank you. Always a pleasure to be here.
Host
There’s just so much more to hear. Download our podcast at DubaiI1038.com.
