The Property Law Thread

[thedubailife]

The developer transfer fee will remain at least until completion of Tower as thats like a charge to draw up contract for new person and also potencially the developer is making more money the more often apartments are flipped..

But my gut feeling is that once a tower is complete that fee will no longer exist.

So in which case whilst a tower is at least in dvelopment you have to pay both fee technically but the Land department fee is not due until you are handed over your keys to your appartment.

So if that completes in 2009 then thats when you will pay the land registration fee.

Also with regards the Visa i'm pretty sure once you have keys to your appartment you can apply for it but msot contracts will state that they are not liable if your application fails. So it's not got anything to do with if an appartment is fully paid or you have a mortagae. I could be wrong do if it's otherwise let us know.

[Krazy]

Property Law will lure more international investment

At a closed forum entitled: 'Future Opportunities & Challenges' organized and hosted by Dubai Property Group (DPG), the association of real estate professionals in Dubai, over 70 leading real estate experts debated the challenges and opportunities that face Dubai's current real estate environment.


Adel Lootah, Executive Director of DPG.

The main topic of discussion was the Emirate's new property law, which is expected to be enforced by the end of this year, and its effects on international investment and property pricing.

'Such a gathering of real estate experts will help in building a better understanding of the current situation and provide insight into the future prospects and challenges related to the property market,' said Adel Lootah, Executive Director of DPG.

'It is essential for the health and progress of the market that executives in the field exchange information to come out with a realistic market view. For this purpose we are planning to organise such a forum every two months.'

The open debate touched on many pressing issues including property prices and rent levels, the prospects and opportunities of increased real estate investment volumes, and the inter-relationships between property owners, developers and buyers given the introduction of the property law.

Speakers included, Elaine Jones, CEO of Asteco, Blair Hagkull, Managing Partner of RSP Group, Roy O'Connor, Director of Arenco Real Estate, Robert Lee, Director of Development from Nakheel Properties.

On the issue of property prices and rents, the participants stressed that the current upsurge is related to market factors and expect the market to stabilize over the next two years. The introduction of the property law will lure more international real estate investors to look more seriously at Dubai. It will also provide a solid foundation for expatriate, national and regional buyers to consider Dubai as a long term investment option.

The participants also discussed issues related to trends in market demand and supply, finance and mortgage facilities, the government's involvement in providing infrastructure, the role of brokers and the importance of property and asset management. They also praised the astounding development that has occurred in Dubai over the past 15 years, the vital role Dubai's Government has played in the process, and the fact that the Emirate's success has become a model for countries such as Libya, Turkey and Pakistan to emulate.

[Krazy]

Power to property owners

Property owners in Dubai will be allowed to form an elected body as part of a series of new laws to bring more clarity to the emirate’s property sector.

Dubai Land Department officials said the government will introduce three new property laws soon. The move is seen as a sign that the authorities are keen to ensure the property market does not slow down. The three laws are the Condominium Law, Trust Account Law and Owners Association Law.

“The Condominium Law is expected to be out in the next two to three months. The other two laws will also come out soon – within the next 12 months,” Sultan Butti bin Mejren, Director General of the Dubai Land Department, told Emirates Today.

He was speaking on the sidelines of the launch of Dubai’s Freehold Property Guide – a 200-page guide to be officially released by the Land Department on Tuesday. The guide comprises a detailed map of all freehold areas and procedures for registration. LAW 1 The Condominium Law will focus on the relationship between investors and developers in freehold apartment buildings, clarifying arrangements for maintenance, utilities and services, besides covering rights of use and owners’ associations. LAW 2 The Trust Account Law will regulate “off-plan” sales. “This law will make sure that when an apartment is booked on an off-plan basis [ie before the building is built], the booking amount goes to a trust account as opposed to the developer’s account,” said Mohammad Sultan Thani, director of development and marketing administration at the Dubai Land Department.

“The developer cannot use the amount. The new law will explain as to when that amount can be released,” he added. LAW 3 The third law, the Owners Association Law, will ensure the formation of a body, where the owner of the building will be able to elect representatives to form an association. “After that, the developer will need to hire another company to manage and maintain the building and that company will have to be registered with the government,” said Thani.

“The Owners Association Law is similar to what Australia has. However, it is called the Strata Title Law in Australia,” said Thani.

[Krazy]

Ajman gets set to roll out law on freehold property

Ajman is all set to codify its freehold property law immediately after Dubai announces its decree on the condominium law, a top government official said.

“The freehold property law for Ajman is almost ready.

“Since most of the projects coming up in the emirate are apartments rather than villas, we are just waiting for Dubai to pass its condominium law,” Rami M Dabbas, Ajman Investment and Development Authority’s Head of Real Estate Development, told Emirates Today.

In anticipation, Ajman has witnessed a spurt in freehold real estate development with estimates pointing to projects worth between Dh20 billion and Dh25bn launched in 2006.

In January, the Government of Ajman announced the Dh50bn Al Zorah project in partnership with Beirut-based firm Solidere Management Service.

Developers such as R Holdings, Tameer, National Center for Real Investment and Khoie Properties have been selling their projects in Ajman as freehold properties.

A similar situation in Dubai before the freehold decree was announced early last year has resulted in a real-estate boom.

“We have framed the property law on the same lines as those announced by other emirates to bring in homogeneity,” Dabbas said.

Crown Prince Sheikh Ammar bin Humaid Al Nuaimi, however, said his emirate was not like other emirates.

Rather it is framing its own roadmap for growth in various sectors, he told Emirates Today last month.

“We are doing our own thing, and we are not following any other emirate.

“Though, obviously, we are studying the market in other emirates and we are learning from their models of growth,” said Sheikh Ammar. He rejected the notion that Ajman’s market will be in competition with Dubai and Abu Dhabi.

“We are not competing, but are complementing them. Though we are targeting the same people, we offer them more choice. It is for the people to decide,” he said.

Sheikh Ammar said Dubai’s efforts to market itself as a destination had helped all other emirates attract invest ment in the realty sector.

“Brand Dubai is to our advantage as they are promoting the whole country, not just Dubai. And we are taking advantage of this,” he said.

[Imre]

god news for Ajman..prices will increase soon

[Krazy]

Looking for capital growth in Abu Dhabi

The Government of Abu Dhabi has this week clarified the legal posi tion regarding proper ty ownership for nonGCC citizens.

The emirate’s property laws now clearly stipulate that nonGCC foreigners cannot own freehold land, but GCC citizens can, provided the land is within a designated investment area. Long leases will be the only option available for non-GCC nationals as they will not be able to own land on which property is built.

This has prompted some analysts to speculate that nonnational investors could feel that they are getting an inferior property title in Abu Dhabi compared to neighbouring Dubai – where clarification over the property law for multiple occupancy buildings is also keenly awaited.

The Dubai system offers freehold to owners of all nationalities, but in the case of high-rise and multiple occupancy buildings, exactly what that means in terms of legal title has yet to be fully defined.

Non-national freehold villa owners in Dubai will have an argument to a superior title over those holding long-term leases on villas in Abu Dhabi. But whether this will make much difference in practice to buying patterns is uncertain. COMPARABLE TITLES? Andrew Chambers, managing director of property management company Asteco, does not believe the difference will alter the buying habits of individuals investors.

He said: “I think a 99-year lease is as good as a freehold in most people’s books, so I don’t think that will affect people’s decision to invest necessarily. When you think about it, most of London is leasehold and the property market there is booming.

“With some of the big international funds we still see a bit of resistance to long term leases, so it may matter to them when it comes to investing in Abu Dhabi real estate.

“The new amendments have only enshrined in stone what we already understood.” INVESTMENT ZONES The Abu Dhabi Executive Council has already designated several sites in the UAE capital, which are being developed by Sorouh Real Estate and Aldar Properties, as investment zones where these buying rights are applicable.

So how do the real estate markets of the UAE’s largest cities compare today?

The major property boom in Dubai occurred in May 2002, when a decree was issued to allow foreigners to buy and own freehold property in selected areas of the city.The same month also witnessed the announcement of Nakheel’s man-made island, The Palm Jumeirah, which was followed a year later by the second palm-shaped island, The Palm Jebel Ali.

All previously developed leasehold property was then automatically transferred to freehold.

After the initial property boom, various new developers joined the market, most notably Damac Properties, Dubai Properties (Estithmaar Realty Fz), and ETA Star Properties.

According to some experts, the more intelligent investors who missed out on the Dubai real estate boom have now shifted their attention to Abu Dhabi. For the UAE capital has embarked on a similar expansion of its real estate sector, albeit at a slower pace. EMERGING MARKET Abu Dhabi’s property law came into effect in August 2005, when the government announced the permitting of 99-year land ownership and renewable 50-year surface ownership to foreigners in specified areas.

From a standing start, the emirate of Abu Dhabi now has more than $100 billion (Dh367bn) of real estate projects in hand, including the $40bn (Dh146bn) Yas Island, $27bn (Dh99bn) Saadiyat Island, $15bn (Dh55bn) Al Raha Beach, $9bn (Dh33bn) Danet Abu Dhabi, $8bn (Dh29bn) Najmat Abu Dhabi, $3bn (Dh11bn) Shams Abu Dhabi and $2bn (Dh7.3bn) Capital Centre.

Middle East real estate investment advisor RSP Group estimates that 250,000 new housing units will be required in the UAE capital to accommodate a doubling of the local population to two million over the next decade.

According to Chambers, house prices in the capital have been quick to catch up with those in Dubai.

“Abu Dhabi is now starting to catch up quickly with Dubai in terms of real estate investment opportunities,” he added. “Three years ago, it really did not have a lot in the pipeline, and there was not much for the savvy investor unless you were buying big tracts of land.

“But now there are several major developments there, including mixed-use hotels and leisure islands.

“Pricing is very similar now between Abu Dhabi and Dubai – Abu Dhabi has moved quite quickly to the same level. You are now looking at about Dh900 to Dh1,200 per square foot for residential property to buy in both emirates.

“Like-for-like products are very similar in Abu Dhabi and Dubai, but there is not as much available in Abu Dhabi. Rental prices in Abu Dhabi are higher because of the absolute shortage of units to buy there to live in.” Analysts have noted that, in particular, major international property investment institutions have been showing great interest in the UAE capital. It could be that the economic and political stability of oil-rich Abu Dhabi is proving more attractive to them than the more volatile commercial economic cycle of Dubai. SUSTAINABLE DEVELOPMENT Viewed in this context, the imposition of a seven per cent rent cap by the Abu Dhabi Government might well be seen as another example of prudent government.

By restricting speculative gains available to investors, Abu Dhabi will ensure that upswings are less spectacular than in some markets, but equally protect against any dramatic downturns.

Most long term investors appreciate government interference if it reduces volatility while allowing asset prices to continue to appreciate.

So, many believe it is possible that while rental prices are kept down, property prices could still take off in a fairly dramatic fashion, particularly if investors perceive the market risk as low and are therefore happy to accept lower rental yields.

Indeed, it could be that Abu Dhabi rental yields quite quickly adjust to global levels which would still allow some spectacular capital gains.

So investors should not be put off by rent control in Abu Dhabi, for the rents are already very high by world standards, and a reversion to global rental yields would assure a handsome capital gain.

The most recent Gulf State to join the wave of property ownership reform, Abu Dhabi is both uniquely well advantaged and determined to move ahead in 2007.

There will be the first sales of off-plan apartments to foreigners on 99-year renewable leases, and the mobilisation of huge construction sites.

But this is also going to be a year of considerable challenges for the sector, which is somewhat late to market. MARKET PITFALLS The main danger, according to analysts, is that market conditions will change, which might mean a softening of oil prices, or a downturn in the neighbouring Dubai market where Abu Dhabi investors have been very active.

Abu Dhabi’s vast wealth is unusual in the world of property development where high leverage, big risks and big gains for the astute or lucky are the name of the game.

Many believe it is this environment that makes Abu Dhabi attractive to global property funds that prize security of asset values over making a fast buck.

According to an article on AME Info, the Abu Dhabi real estate market is undergoing a fundamental change even bigger than in Dubai.

According to the article,“this is the start of a completely new property market in the city with the world’s highest per capita income.”

[Krazy]

First registration of Dubai residential apartment announced

The first registration of a residential apartment under the new legal framework introduced last year was announced today by the Government of Dubai Land Department.

The landmark announcement signals a major step forward on the road to widespread ownership registration in the emirate, a process that could escalate into many thousands in coming weeks.

The knock-on effect for Dubai's real estate market is expected to be immense, with the new framework underpinning ownership by previously excluded groups and establishing definitive rights. The registration - of an apartment in a Dubai residential tower - was approved by Jumaa bin Humaidan. Assistant Director of the Land Department, and witnessed by Majid ujail, Head of Customer Service Department.

Registration was made in accordance with article 23 of the Real Estate Registration Law, issued in March last year. This covered registration of residential apartments, multi- storey buildings and residential complexes.

Jumaa bin Humaidan said: 'This is just the beginning and signals the Department's commitment to preserving landlord rights under the new law. The first residential apartment registration system was a collective effort that has seen the involvement of IT, technical and customer service departments. These worked closely together to create an electronic platform to handle the registration of large numbers of residential apartments and the changing of ownership entities due to daily trading.'

Mr. Bin Humaidan added that this platform had been designed in collaboration with real estate companies and property developers. The IT team within the Dubai Land Department had put extensive time and effort to shape up the new electronic registration system that conforms to international standards.

Majid Al ujail, Head of Customer Service Department, said: 'This type of registration platform, which authenticates property ownership, reflects the boom of Dubai real estate market. The Land Department is expected to issue thousands of ownership certificates for residential flats and complexes during the coming few months.'

Majid commented that following the first 'Ijarah' transaction, today Dubai Land Department has made another step forward through the registration of residential properties. This will transform the way real estate ownership occurs in Dubai.'

[Krazy]

10-year warranty for new property owners






Property developers must maintain and repair construction defects in common areas of their projects for 10 years after hand over, according to a new draft law.

The “Real Estate Common Ownership Law” was proposed by the Dubai Land Department and is being reviewed by the emirate’s Executive Council.

It is likely to be issued “in a few weeks”, by Sheikh Mohammed bin Rashid Al Maktoum,Vice-President and Prime Minister of the UAE and Ruler of Dubai, said Sultan Buti bin Megren, Director-General of the Land Department.

The law also paves the way for the formation of an owners’ society that safeguards the rights of the home-owners in any development, Bin Megren told Emirates Today’s sister publication Al Emarat AlYoum in an interview yesterday.

Blair Hagkull, managing director of real estate services company Jones Lang LaSalle, welcomed the new law as “another step in the evolution of Dubai’s maturing property market”.

He said: “It creates investor confidence by providing greater regulation, transparency and clarity. These will all contribute to a more mature market with increased investor confidence.

“It’s a very positive step that incorporates a lot of international best practice, including long-term maintenance of communal areas.” Walid Karam, a legal consultant with Habib Al Mulla & Company, also welcomed the draft proposals.

“There has been a need for legislation regulating the relationship between developers and purchasers for some time now,” he said.

“It is very important to safeguard the rights of buyers, and I think it will create stability in the market.” Bin Megren said the land department has decided to change the name of the law from the “Apartment and Floor Draft Law” to the “Real Estate Common Ownership Law” as its jurisdiction includes apartments, villas and homes in residential communities in the emirate.

“The law includes the rules regulating the ownership and registration of real estate in addition to the provisions governing the joint parts of buildings and the common areas,” Bin Megren said.

The law stipulates the common areas of a building, villa development or housing colony will be included in the title deed of the property.

“The law forces the owner of each unit in a condominium to adhere to the society’s rules.

“It also determines which parts of a development are common areas and stipulates that they should remain and be treated as common areas,” he said.

The common areas of any construction will include basic pillars, foundations, columns, posts, staircases, facades, rooftops, car parking, watchman rooms, entertainment equipment, swimming pools, gardens and the like.

[V Kapoor]

I got this from the Emaar site regarding Registration of Property.... it spells out the entire procedure, documents required and even the time scheduled for different areas..... Anyone gone through the process?


Property Registration

Following the announcement of the new Property Law, Emaar is putting arrangements in place for the commencement of registration of the transfer of ownership to its purchasers for the properties that are completed, handed over and fully paid and without any outstanding balances for charges such as Services, interest and Maintenance Fees.

Our dedicated Property Transfer Department is in the process of working with the Land Department in this regard. Please note that the registration of ownership will be conducted in accordance with the “Regulations Concerning the Identification of Areas in which Foreigners are Entitled to Own Properties in the Emirate of Dubai” as implemented by the Government of Dubai and the Land Department. While best efforts have been undertaken by Emaar to secure a smooth and quick procedure, a representative from Land Department would be located (on temporary basis) at Emaar Office, for assisting in registration of mortgage simultaneously with the registration of transfer of ownership.

Please note that this process will commence on the 19th September 2006 and various projects will be dealt with in accordance with the sequence and timetable appearing at the end of this circular.

The submission of applications will be at Emaar’s Property Transfer Department that will be completed by Emaar at the Land Department; however, the purchaser’s attendance at the Land Department will not be required. On completion of registration, Emaar’s Property Transfer Department will notify each homeowner via SMS for the collection of their respective title deed.

In order to simplify the process, homeowners are requested to fill up the Declaration of Name and Ownership and Customer Information Sheet forms and submit it at the time of application, Please note that you are requested to write your complete full name, no initials are to be used. It is mandatory that all required documents mentioned in the fact sheet be ready and submitted along with the application, failing which the application would not be accepted.

The required forms are available in the related links, typed information on forms required for submission would be preferred.

Note: For projects which are not completed yet, we will advise our customers of the date(s) of registration of their properties shortly after their project’s completion date.

For queries please contact Emaar’s contact center on 800 Emaar (800 36227), or +971 4 366 1688 or email ptd@emaar.ae

Kindly, take into consideration that various projects will be dealt with in accordance with the Registration Schedule - see related link. The department is located at Emaar Business Park, Building no. 1, ground floor.
For any queries or clarification, please feel free to contact us on any of the above mentioned number.

For queries related to Land Department, please contact 800 4485
Property Registration Schedule

We are starting the process for Emaar Properties as per the below schedule as agreed with Land Department:

Project Name Start Date End Date
Meadows 19th Sep 2006 14th Nov 2006
Hattan 15th Nov 2006 20th Nov 2006
Emirates Hills /
Dubai Marina Plots 21st Nov 2006 30th Nov 2006
Saheel 3rd Dec 2006 14th Dec 2006
Arabian Ranches 1 17th Dec 2006 21st Dec 2006
Savannah 24th Dec 2006 31st Dec 2006
Mirador 2nd Jan 2007 14th Jan 2007
Springs 15th Jan 2007 29th Mar 2007
Reem (I,II,III) 1st Apr 2007 30th Apr 2007
Greens 1st May 2007 12th Jul 2007
Dubai Marina 15th Jul 2007 30th Aug 2007


Property Registration for Individual & Joint Owners

Documents Required
• Original Sale Agreement / Contract
• Photocopy of Passport together with original for Verification
• Declaration of Name and Ownership
• All due payments for the current year should be paid before
submitting the application
• Municipality Completion Certificate (Emirates Hills & Dubai Marina
plots only)
• Customer Information Sheet (Available in Related Links)
Registration Fees
• 1.5% of the Contract Price plus AED10 knowledge fee, AED 100 Site
Plan fee plus AED10 knowledge Fee payable by the customer to
Emaar and will be remitted to Dubai’s Land Department. (Only
Manager’s Cheque will be acceptable)

Note: All applications are subject to approval. The policy and procedures may change without prior notice.

Dubai Marina Apartment Units....it seems will be taken-up only from 15 July, 2007 to 30th. Aug, 2007. That being so does the owner have to be present during that time or could the papers, etc., be submitted earlier to be disposed of in the specified time slot! I have an apartment in Marina Diamond 2, and would be visitng Dubai in June. I think its a good idea to have the property registered and secure the Title Papers asap.

[kano]

^As regards the registration fees have they not been reduced to 1 % ?

[V Kapoor]

I am not sure of that....we need to check it out and confirm.

All that I posted is from the website of Emaar.

[IISinbadII]

Can anyone recommend a property lawyer in Dubai who is good but not expensive...... He would have to oversee a property purchase and related documents. Thanks.

[DUBAI]

Good but not expensive?

thats not the way the market works!

[IISinbadII]

Landlords 'cannot force tenants out of houses'
By Ashfaq Ahmed, Staff Reporter

Dubai: Tenants cannot be forced out of their homes by landlords without permission from the authorities concerned, said a senior official at the Rent Committee.

"No one can force or threaten a tenant to vacate the house," said Mohammad Al Shaikh, Secretary General of the Dubai Rent Committee.

He advised tenants to complain to the rent committee if they face such a situation.

The Dubai Rent Committee recently barred a landlord from renting his house when he served an eviction notice on the pretext that he needed the house for his son.

An official said the landlord was using the pretext just to increase the rent or get a new tenant on a higher rent. The tenant approached the committee, which told the landlord if he really needed a house for his son then he would not be able to rent out the same house to another tenant.

"There is no hard and fast rule on such cases. We decide every case on its merit," said Mohammad Al Shaikh, when asked whether this decision would apply to every landlord.

The Dubai Rent Committee receives a number of complaints from landlords seeking eviction of tenants, giving different excuses. Such cases have increased especially after the maximum seven per cent rent cap came into effect from January this year - mainly because many landlords want tenants to move out so that they can increase the rent.

Procedure

Al Shaikh said there is a procedure for serving an eviction notice - explaining the reason for eviction.

The tenants should come to the rent committee if they do not agree, he said.

The rent committee with the help of Dubai Municipality team inspects the building and then gives its decision. "But enough time is given to tenants to look for another house," he said. Also, priority should be given to the same tenants once the maintenance work is over.

He also clarified that tenants will not be evicted if a landlord uses an eviction notice as a threat just to increase rents.

"Tenants' rights are protected under the law and they should not hesitate to contact the rent committee in case of disputes," said Al Shaikh.

"I would suggest that tenants, who get rent increase notices or eviction notices, to write letters to their landlords or real estate agents mentioning the new rent law.

Disputes

"If they [tenants] do not agree, then come to us and file a case. We are here to settle such disputes," he said.

He made it clear that the rent committee takes action on disputes only if a tenant or landlord formally files a complaint with the committee.

The complainant has to deposit a fee of 3.5 per cent of the total rent amount. The fee is adjusted in the rent if he wins the case.

No significant increase in cases

Mohammad Al Shaikh, Secretary General of the Dubai Rent Committee, said there was no significant increase in the number of cases regarding rent disputes.

"Landlords know about the seven per cent rent cap rule and most of them normally don't tend to violate this," Al Shaikh said. The committee, which meets six times a week, deals with an average of 150 to 200 cases every week.

Gulfnews

[Krazy]

Abu Dhabi to clarify key rules and procedures for real estate industry



Dubai: Regulations currently being drafted by Abu Dhabi Land Department are set to clarify key rules and procedures in the emirate's booming real estate sector, according to a top UAE law firm.

Since 2005, several laws have been issued which deal with property registration and ownership for UAE nationals, GCC nationals and foreigners in Abu Dhabi, said Mohammad Kamal, property lawyer at Dubai-based Al Tamimi & Company.

However, these were just "skeleton frameworks" which rely heavily on added regulations - termed implementation regulations - to fill in grey areas, he said.

Kamal said recent discussion between Al Tamimi and Abu Dhabi Land Department have revealed that implementation regulation regarding Law No 3, which concerns registration procedures for land in the name of UAE nationals, have been drafted and sent to the emirate's Executive Council for approval.

Meanwhile the same regulations for Law No 19, which was issued in 2005 to define the ownership rights of UAE, GCC and foreign nationals, are in the draft stage.

"We expect that continued interest and activity in Abu Dhabi's real estate sector will act as a catalyst to speed up the process of implementation regulations," said Kamal.

"This would clarify some of the legal issues that arise, particularly for GCC and foreign nationals."

Under Law No 19, UAE nationals have the right to own property anywhere in Abu Dhabi, while ownership for GCC nationals is restricted to designated investment zones.

The law grants foreign and GCC nationals the right to own apartment units or entire floors in the investment zones, but foreign nationals are only allowed to own the surface rights, not the underlying land on which the building is situated.

To own land outside an investment zone, non-UAE nationals have to receive special dispensation from Abu Dhabi's Executive Council, Kamal said.

According to Kamal, the Land Department is adding Saadiyat Island, Lulu Island and the High Corporation for Special-ised Economic Zones to a list of investment zones which currently includes Al Reem Island and Al Raha Beach.

[Krazy]

DIFC freehold ownership laws enacted


Dubai: Following public consultation, the Real Property (DIFC Law No 4 of 2007) and Strata Title (DIFC Law No 5 of 2007), as well as regulations complementing these laws, have been enacted by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. The laws and regulations will take effect immediately.

To ensure the quality of these laws, the Dubai International Financial Centre Authority (DIFCA) held a 30-day consultation period and encouraged all interested parties to submit their thoughts on these laws. During the consultation period, over 200 submissions were received.

Due to the enormous interest of the public, the consultation period was later extended for an additional 30 days.

Torrens system

All submissions were considered, and many were incorporated in the revised versions of the laws. The resulting laws provide an internationally-proven system for registration and real property ownership in line with the DIFC's mission vision and values as an international financial centre. These laws apply exclusively in the jurisdiction of the DIFC.

The Real Property Law guarantees ownership of freehold land and buildings, and other interest in land, within the DIFC. The law is based on the underlying principles of English common law, but also incorporates the Torrens system of land registration, well known in countries such as Australia, New Zealand, Canada and Singapore.

Under the Real Property Law, land transactions are registered in a central register administered in the DIFC. Once registered, the law certifies them to be fully effective.

[Krazy]

Condominium Law is in highest stages of consideration



Dubai: The all-important regulatory framework governing Dubai's property sector took a huge leap forward last week with the introduction of trust accounts safeguarding home buyer's payments for off plan purchases.

Attention is now focused on preparing the market for a long-awaited law which will dictate management of the common areas of housing developments.

A draft of the Condominium Law (also known as Strata Law) was submitted to Dubai's highest authorities some time ago and is in the "highest stages" of consideration before official approval, said Dubai Land Department.

In countries where the law is established, developers hand over control and ownership of the common areas of building (such as pools, gyms, car parks and lifts) rather than only individual units. Currently in Dubai, many buyers legally own the actual unit they bought, but have no claim on common areas.

UAE Strata Global, a strata title management company operating in Dubai, warns that disputes between owners and developers over maintenance and service of common land will continue unless the law addresses the legal rights of owners' associations, the role of the developer after handover, and payment of service charges.

When eventually approved by Dubai government, the law is likely to divide common areas by the number of units and give each owner an equal share, said Dubai-based real estate agency Better Homes.

It will put building ownership, and therefore management and maintenance, into the hands of home owners who will ensure that these areas are properly managed and maintained. Each building will elect a committee, known as a Home Owners Association (HOA), to oversee these matters.

Better Homes said the committee will budget for all required maintenance work for the building or area, including an allowance for unforeseen issues. The total sum will be divided by the number of units and all owners will be asked to pay that sum as a service fee, the firm said.

Much stricter

In a move that will be much stricter than strata laws in other countries, Dubai government will introduce tough policies for fee payment, added Ryan Mahoney, managing director, Better Homes. He said owners who fail to make the necessary payments in a given period of time could face having their unit sold as a penalty.

In preparation for the introduction of the law, residents of Westside Marina Building, with the support of its developer Tulip Developments, have signed a joint submission from Better Homes and AUAE Strata Global to manage both the property and HOA of the building.

The arrangement calls for Better Homes Property Management to be contracted in the pre strata law stages while Tulip developments remains owner of the common property.

AUAE Strata Global will then step into a strata management role for the home owners, undertaking all duties required in relation to the strata law and its regulations, developing a framework to help them move forward towards strata title.

[Salty]

From today's Gulf News at:

http://www.gulfnews.com/business/Rea.../10185854.html

Condominium Law to rescue investors

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, issued Condominium Law (Law No. 27 of 2007) on ownership of joint properties in Dubai.

The law was based on federal Law No. 5 for 1985 on civil transactions and its amendments, Law No 7 of 2006 regarding property registration and order No 3 of 2006 which gives expatriates the right to own properties in designated areas in the emirate.

In its article 3, the 33-article law stipulates that the blueprint (plan) of the property's site, the terms and rules of developing and operating the joint property and the statute of the Landlords' Association constitute part of the joint property ownership's document, and must always be attached with it.

It also states that the tenant who occupies the leased property should comply with the same rules and terms as well.

Salient features

Article No. 15: Landlords are allowed to rent out their units, provided they and their tenants abide by the association's statute and terms and regulations.

Article No. 17: The landlords association must be established when the first unit of a joint property is sold.

Article No. 18: The landlords association is a non-profit entity with an independent incorporate body. It has the right to sue and be sued and the right of owning transferable funds.

Article No. 21: The association holds the responsibility of management, operation and maintenance of common use areas, and must acquire a licence from the department for this purpose.

Article No. 22: Each landlord shall pay to the association his share of the annual service fees to cover the management, operation, maintenance and repair of common use areas. The developer must pay its share of fees for unsold units.

Article No. 24: Landlords, tenants and their guests must use the common use areas and in a way that does not affect the rights of others to use these areas or disturb them or jeopardises their safety or the safety of the common use areas.

Article No. 25: The association has concession rights over every unit regarding to unpaid service fees and other obligations imposed by the association in line with this law or the association's statute.

Article No. 26: Developer's responsibility of any structural defects in the joint property continues for 10 years, starting from the date of issuance of the project's accomplishment certificate.

Article No. 28: The landlords association is obliged to provide insurance coverage for the joint property that covers the cost of repairing or rebuilding it in case of damage or destruction for any reason. The association will be the beneficiary of this insurance.

Article No. 29: The landlords association is committed to provide insurance coverage for any damages to the joint property or physical injuries to its occupants.


There is a link to the full text of the Condiminium Law as a pdf in the article.

[bizzybonita]

New licensing regime for stock brokers in UAE

The Emirates Stocks and Commodities Authority (Esca) has come up with a new licensing regime for stock brokers, under which they have to attain mandatory technical qualifications by the middle of the year, to promote integrity, fairness and sustain investors' confidence.

"The new qualifications regime will enable the UAE to adhere to the same high standards as the top financial centres such as London, Hong Kong, and New York, who have mandatory certification and licensing regimes," said Shaikha Lubna Al Qasimi, UAE Minister of Economy, at a ceremony held to sign an MoU between Esca and Securities and Investment Institute (SII) of UK. Abdullah Al Turaifi, chief executive of Esca said the introduction of a certification and licensing regime will be implemented by the middle of this year. Esca, would establish new criteria for entry to the register for brokers and from April this year SII's qualification and membership will be required by brokers in certain jobs functions, as part of the application for a broker's licence.

The authority has recently established a qualification committee, comprising members from Esca, DFM, ADSM and DGCX to give their input. In March, the qualification committee and SII will issue a public document detailing the relevant qualifications which will be required to obtain an individual's brokerage licence. Esca chief said that this new licensing regime will include foundation, local regulatory and global certification.

[IISinbadII]

A friend of mine is looking for a good lawyer who understands UAE property law and can draw up a living will. Any recommendations. Thanks.