Business | Property
Dubai condominium law likely this year
A new law outlining the rights and obligations of investors in common hold apartment blocks in Dubai is expected before the end of 2006, sources told Gulf News on Monday.
- By Robert Ditcham, Staff Reporter
- Published: 00:00 July 17, 2006
Dubai A new law outlining the rights and obligations of investors in common hold apartment blocks in Dubai is expected before the end of 2006, sources told Gulf News on Monday.
The condominium law will manage the relationship between investors and developers in freehold apartment buildings, clarifying arrangements for maintenance, utilities and services, as well as covering rights of use and owners' associations.
The news follows the official publication of Dubai's freehold zones and is seen as the third and final step in the emirate's progress towards a mature real estate market.
"When this law is made official it will represent the final part of the equation," said Marwan Ahmad Bin Galita, technical administration director at Dubai Land Department.
"It will make it clear to every investor his rights and obligations regarding staying in a common hold structure."
Dubai's property law now covers sales and purchases, but disputes can still arise over costs and arrangements for maintaining areas such as grass verges, swimming pools, corridors and lifts.
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Sudhir Kumar, partner and executive director of the property division at Morison UAE Consulting, said implementation of rules agreed by developers and investors, and confirmed by law was essential.
"This will increase consumer confidence and make the market more transparent. It shows the government is moving in the right direction," he said.
The law will be the final stage of a process that began in March when Law No. 7 allowed expatriates to own local property. It was updated on Sunday with a long-awaited decree naming Dubai's freehold zones.
So far, 700 expatriates have been given official documents confirming title deeds in their names.
The Land Department will set up a temporary office on Shaikh Zayed Road, near Dubai Marina, in October to deal with the rush for registration and will open a permanent office in Al Barsha next year.
"We advise buyers to do a lot of homework before investing," said Bin Galita. Initial land registration is completed by a master developer who then transfers the details of individual owners to the Land Department.
If the land is then sold, the owner and buyer must complete the transfer at the Land Department.
They must also ensure that no obligations have been left outstanding.
The department stressed that a master development can be officially declared freehold, but a developer can decide to designate parts as 50-year lease, 99-year lease or freehold.
Regulations
Towards a mature property market
- The condominium law will clarify the rights and obligations of owners staying in common hold apartment blocks. It will cover maintenance fees, utilities, services, owners' associations and rights of use.
- The publication of Dubai freehold zones on Sunday clears the way for owners to register title deeds in their name. Initial land registration is completed by the project's master developer who then transfers individual units of land to buyers' names. The Land Department can process about 300 of these initial registrations a day.
- If the unit of land is re-sold, the seller and the buyer must complete the necessary paperwork at the Land Department.
- The Land Department will set up temporary offices for registration before a permanent office is built in Al Barsha next year.
- About 700 non-Gulf expatriates have completed registration and have been given documents confirming the plot in their names.
- The department advises prospective buyers to ensure the land is designated as freehold and to make sure the sub-developer has an agreement with the master developer to build and sell.
- Buyers are also advised to check the plot is registered with the Land Department and to make payments into an escrow account, should such an arrangement exist.
For more info visit info@dubailand.gov.ae
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