New laws soon to streamline property sector
Dubai's real estate sector will be further streamlined soon with the property law currently being expanded to cover more areas to ensure the rights of apartment owners, according to a senior Dubai Land Department official.
Mohammed Sultan Thani, Director Development & Marketing Administration, said a condominium law which regulates the rights and responsibilities of owners with respect to common areas of a building is in the pipeline.
Also under way is a trust law governing escrow accounts, and a law regulating owners associations. He did not specify a date when the new laws would come into effect, but said they would go a long way in streamlining the booming real estate sector.
The condominium law, designed to define the relationship between investors and developers in freehold apartment buildings, will be clear on arrangements for maintenance, utilities and services, as well as covering rights of use and owners' associations.
Owners associations at several developments have not yet been given the rights to manage the cost of maintaining the apartments by developers. As a result, the cost of maintenance and upkeep of the property is unilaterally decided by the developer leading to complaints from owners about the "exorbitant charges for maintaining common areas including lawns, swimming pools, corridors and lifts," an industry sources said.
The new rules will ensure the investor his rights and obligations in a common hold structure, said Sultan Thani.
The condominium law, also known a strata law, will ensure the creation of owners’ associations which will have the power to operate their own financial accounts, he said.
He said the Land Department has entered into a strategic partnership with Strategic Marketing and Exhibition for organising an international property show. At the show, the department seek to project the real estate's market central role in Dubai by providing the latest property registration procedures. In addition, the Dubai land department will be holding an auction during the exhibition.
"With the ongoing boom in the property sector across the Middle East set to continue in 2007, The International Property Show 2007 will seek to provide a platform for property developers, financiers, and consultants to widen their networks, interact with their clients, and showcase their latest developments," said Dawood Al Shezawi, Managing Director, Strategic Marketing and Exhibitions. Source
Mohammed Sultan Thani, Director Development & Marketing Administration, said a condominium law which regulates the rights and responsibilities of owners with respect to common areas of a building is in the pipeline.
Also under way is a trust law governing escrow accounts, and a law regulating owners associations. He did not specify a date when the new laws would come into effect, but said they would go a long way in streamlining the booming real estate sector.
The condominium law, designed to define the relationship between investors and developers in freehold apartment buildings, will be clear on arrangements for maintenance, utilities and services, as well as covering rights of use and owners' associations.
Owners associations at several developments have not yet been given the rights to manage the cost of maintaining the apartments by developers. As a result, the cost of maintenance and upkeep of the property is unilaterally decided by the developer leading to complaints from owners about the "exorbitant charges for maintaining common areas including lawns, swimming pools, corridors and lifts," an industry sources said.
The new rules will ensure the investor his rights and obligations in a common hold structure, said Sultan Thani.
The condominium law, also known a strata law, will ensure the creation of owners’ associations which will have the power to operate their own financial accounts, he said.
He said the Land Department has entered into a strategic partnership with Strategic Marketing and Exhibition for organising an international property show. At the show, the department seek to project the real estate's market central role in Dubai by providing the latest property registration procedures. In addition, the Dubai land department will be holding an auction during the exhibition.
"With the ongoing boom in the property sector across the Middle East set to continue in 2007, The International Property Show 2007 will seek to provide a platform for property developers, financiers, and consultants to widen their networks, interact with their clients, and showcase their latest developments," said Dawood Al Shezawi, Managing Director, Strategic Marketing and Exhibitions. Source
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