Dubai publishes long-awaited property law
Dubai on Wednesday published its long-awaited law governing the ownership of properties within developments in the emirate.
The Condominium Law clarifies the relationship between developers, landlords and tenants, setting out rules surrounding the ownership and management of developments, or what it terms "joint properties".
The law defines a joint property as either a building comprising units or defined area comprising land plots.
Under the new law, which comes into effect on April 1, every joint property must have an owners' association.
An association must be set up after first unit of a development is sold. It will be made up of all unit owners of the development and the master developer.
Under the law, all owners' associations will become legal bodies with bank accounts and contracts for a group of owners.
They will have the right to sue landlords and tenants for violating any part of the Condominium Law.
Owners' associations will be responsible for the management, operation and maintenance of all common areas of the development.
Common areas of a building include lifts, parking areas, entrances, gyms and swimming pools, while common areas of a defined area comprising land plots includes roads, paths, lakes, canals, parks, and play areas.
Common areas in both includes infrastructure such as water pipelines, drainage system, Gas pipelines and
electricity cables.
The law states that owners' associations will maintain comprehensive insurance of the joint property and will be beneficiaries of this insurance. Each unit owner will pay an insurance premium to the association.
The legislation also states that the developer will be responsible for any structural defects in the development for 10 years, and is responsible for fixing or replacing any defective fittings for one year after a unit is purchased
Under the law, Dubai Land Department will keep the registrations of joint properties and their owners, and issue ownership documents. It will also regulate sale deals and mortgages, and any other transactions regarding such properties.
New buyers of a unit within a joint development will also have full access to records, diagrams and financial statements which will be held by the owners' association.
Long-term lease contracts and related rights must also be registered with the department.
The new law is part of an overhaul of the emirate's property laws aimed bringing order to the market, which has largely been unregulated until now.
Other real estate market reforms currently being implemented include the licensing of property brokers and the escrow account law, designed to protect property buyers from unscrupulous developers. Source
The Condominium Law clarifies the relationship between developers, landlords and tenants, setting out rules surrounding the ownership and management of developments, or what it terms "joint properties".
The law defines a joint property as either a building comprising units or defined area comprising land plots.
Under the new law, which comes into effect on April 1, every joint property must have an owners' association.
An association must be set up after first unit of a development is sold. It will be made up of all unit owners of the development and the master developer.
Under the law, all owners' associations will become legal bodies with bank accounts and contracts for a group of owners.
They will have the right to sue landlords and tenants for violating any part of the Condominium Law.
Owners' associations will be responsible for the management, operation and maintenance of all common areas of the development.
Common areas of a building include lifts, parking areas, entrances, gyms and swimming pools, while common areas of a defined area comprising land plots includes roads, paths, lakes, canals, parks, and play areas.
Common areas in both includes infrastructure such as water pipelines, drainage system, Gas pipelines and
electricity cables.
The law states that owners' associations will maintain comprehensive insurance of the joint property and will be beneficiaries of this insurance. Each unit owner will pay an insurance premium to the association.
The legislation also states that the developer will be responsible for any structural defects in the development for 10 years, and is responsible for fixing or replacing any defective fittings for one year after a unit is purchased
Under the law, Dubai Land Department will keep the registrations of joint properties and their owners, and issue ownership documents. It will also regulate sale deals and mortgages, and any other transactions regarding such properties.
New buyers of a unit within a joint development will also have full access to records, diagrams and financial statements which will be held by the owners' association.
Long-term lease contracts and related rights must also be registered with the department.
The new law is part of an overhaul of the emirate's property laws aimed bringing order to the market, which has largely been unregulated until now.
Other real estate market reforms currently being implemented include the licensing of property brokers and the escrow account law, designed to protect property buyers from unscrupulous developers. Source
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