4 Important Things You Should Know About the New Joint Ownership Law

1. 4 Important Things You Should Know 4 Important Things You Should Know About the New Joint Ownership Law About the New Joint Ownership Law In Dubai, the new joint ownership law governs and defines the responsibilities of all the In Dubai, the new joint ownership law governs and defines the responsibilities of all the stakeholders that are occupied with jointly stakeholders that are occupied with jointly- -owned properties. It includes those who are owned properties. It includes those who are located located in the free zones and special development zones. This law also brings together in the free zones and special development zones. This law also brings together developers, owners, and facility management companies and provide transparency developers, owners, and facility management companies and provide transparency around the management of properties. In this article, around the management of properties. In this article, we will discuss we will discuss some essential some essential things that y things that you should ou should know know about the new joint ownership law in Dubai. about the new joint ownership law in Dubai.

2. As the new joint ownership law statements released by the Dubai government, it is As the new joint ownership law statements released by the Dubai government, it is pertaining to the joint ownership of the real estate in Dubai would enhance competition pertaining to the joint ownership of the real estate in Dubai would enhance competition and also an investmen and also an investment. Regarding this new law, the jointly owned properties would be t. Regarding this new law, the jointly owned properties would be divided into three categories. divided into three categories. This thing will happen for the purpose of management of common areas. It is ideal to This thing will happen for the purpose of management of common areas. It is ideal to find find one of the best real estate lawyers in Dubai one of the best real estate lawyers in Dubai, or wherever you live, to know more , or wherever you live, to know more about new joint ownership law. about new joint ownership law. Below, I’m going to share some important things that you should know about the new Below, I’m going to share some important things that you should know about the new joint ownership law. joint ownership law. Key Elements of the New Joint Property Key Elements of the New Joint Property Law Law 1. 1. Enhanced Clarity on the Application of the Law Enhanced Clarity on the Application of the Law

3. Joint properties fall into three categories including major projects, hotel projects, and Joint properties fall into three categories including major projects, hotel projects, and other types of projects different from the first and second categories. other types of projects different from the first and second categories. Direction and documentation accepted an Direction and documentation accepted and approved by the RERA is the ideal to the d approved by the RERA is the ideal to the entry into force of the new law to be applicable. As per the rules of law, ownership entry into force of the new law to be applicable. As per the rules of law, ownership certification, and other important documents related to joint properties will be used. certification, and other important documents related to joint properties will be used. 2. 2. Owners’ Association No Longer Exists Owners’ Association No Longer Exists Within the joint property, the owners association will be no longer responsible for the Within the joint property, the owners association will be no longer responsible for the common area’s management. Form the common area’s management. Form the new law, a management entity can new law, a management entity can replace the replace the owner’s association in the right and obligations. owner’s association in the right and obligations. Also, the owner’s committees and fully Also, the owner’s committees and fully legal companies will be also representing the interest of the ownership related to the legal companies will be also representing the interest of the ownership related to the developer and stakeholders. As per law, the owner’s committee for the first categories developer and stakeholders. As per law, the owner’s committee for the first categories should not involve more than nine members. should not involve more than nine members. For the management entity, it will be important to provide RERA with a report every six For the management entity, it will be important to provide RERA with a report every six months based on the management of jointly owned properties and other important months based on the management of jointly owned properties and other important information. RERA also has the right to request the management entity for providing information. RERA also has the right to request the management entity for providing othe other important information and the statements of accounts of the revenues and r important information and the statements of accounts of the revenues and additional expenses. additional expenses. As per the new joint ownership law, RERA is able to appoint other facility management As per the new joint ownership law, RERA is able to appoint other facility management entities for overseeing the common areas of the jointly owned projects. entities for overseeing the common areas of the jointly owned projects. 3. 3. Centralised Documentation and Registration Requirements Centralised Documentation and Registration Requirements

4. For the new jointly owned properties, the Dubai Land Department will make and For the new jointly owned properties, the Dubai Land Department will make and administer a unique register. This register will include some important details, not administer a unique register. This register will include some important details, not limited to: limited to: Land owned by develop Land owned by developers ers Units allocated for independent ownership Units allocated for independent ownership Members of the owner committee Members of the owner committee Building management systems Building management systems Plans and management entity Plans and management entity Contractual documents regarding the management of jointly owned properties and Contractual documents regarding the management of jointly owned properties and other common parts. other common parts. 4. 4. Clarity on the Se Clarity on the Service Charges and Use Charges rvice Charges and Use Charges Generally, RERA maintains the role over service charges and use charges. And as per Generally, RERA maintains the role over service charges and use charges. And as per the new law, RERA will inspect and operate these chargers, and then it will be referred the new law, RERA will inspect and operate these chargers, and then it will be referred to a certified legal auditor. These collections can to a certified legal auditor. These collections can be m be made in a particularly designed bank ade in a particularly designed bank that is opened by the management entity. The collected funds will be used for strictly that is opened by the management entity. The collected funds will be used for strictly designated purposes, including insurance of the jointly owned properties, maintenance, designated purposes, including insurance of the jointly owned properties, maintenance, and cleaning or creating cash reverse that and cleaning or creating cash reverse that will be used in emergency situations. will be used in emergency situations. The new joint ownership law will play an important role in the Dubai real estate market. The new joint ownership law will play an important role in the Dubai real estate market. You can find one of the reliable real estate lawyers in Dubai, or elsewhere, for knowing You can find one of the reliable real estate lawyers in Dubai, or elsewhere, for knowing every aspect of the new law. every aspect of the new law.

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