New law covering jointly owned properties in Dubai

FAQs related to the new law covering jointly owned properties in Dubai

The Government of Dubai issued a new law on the 24th of Sep 2019, about the joint ownership of the real estate. The law was introduced as part of a regulatory framework designed to increase competition, boost investment in the real estate sector, and safeguard the rights of all the parties.

The Ruler of Dubai, Vice President and Prime Minister of the UAE His Highness Sheikh Mohammed Bin Rashid Al Maktoum issued, Law No. (6) of 2019 regarding joint ownership of the real estate in the emirate. The new law covers all major real estate projects and jointly owned properties. The law also includes those properties located in Dubai free zones and special development zones.

We know our readers must have various doubts in their mind related to the new rule. We will try to answer some of the Frequently Asked Questions (FAQs) about the new joint ownership property law.

When will the new law come into effect?

The new law will come into effect within 60 days of its publication in the official gazette.

What does the law say?

According to the law, the Government of Dubai will create a register for jointly owned properties. The register will be featuring “all information related to the land owned by developers and real estate units meant for independent ownership.”

All the details regarding contracts related to the management of the property should be registered, such as:

  • Jointly owned real estate development
  • The common areas
  • The areas owned by the developer of the project

What are the things included in the register?

The register will feature the names of all the stakeholders, such as:

  • The owners
  • Members of the committee of the owners
  • The building management company (managing common areas and amenities)
  • Information about the developers and operators of the project

The Dubai Land Department (DLD) will issue the ownership certificates and documents related to individual units in jointly owned real estate properties.

What are the responsibilities of the developer?

Under the law, the developer will be responsible for submitting all necessary documents of jointly owned real estate projects and receipt of completion certificate to the Land Department within 60 days of the completion date.

The Dubai Land Department has the right to extend the deadline by 30 days. If still the documents are not submitted, the department may ask another party to present the certificates. In such scenarios, the developer will be charged with all the related expenses and fees.

Commencing from the date of issuance of the completion certificate to the next 10 years, the developer will be responsible for any damage to the structure of the jointly owned estate property. Also, the developer must replace and repair any defaults in the individual’s units within 1 year from the date of delivering the unit to the owner. If in case the owner refuses to take the finished unit in his possession or defaults, the period will be calculated starting from the issuance date of completion certificate.

What are the categories of jointly owned property?

The new law divides jointly owned properties into three categories for the purpose of the management of common areas.

  1. Megaprojects: The developer is responsible for managing, operating, and maintaining common areas and facilities.
  2. Hotel projects: The developer will appoint a company to manage the common areas as per the DLD regulation.
  3. Other projects: A specialized facility management company manages the common areas.

What are the penalties?

Anyone who violates the law will face financial penalties up to AED 1 million. In case of repeat violations within a year, the penalty will rise to AED 2 million.

We hope we were able to answer most of your queries related to the law. If you still have any questions kindly get in touch with our reputed team of Real Estate Lawyers in Dubai at our office. Or you can also book an appointment for Paid Legal Consultation over phone for just AED 199.

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