The Land Department today released detailed guidelines implementing Dubai’s ‘Strata Law’. The move introduces a new regulatory framework which redefines the rights, responsibilities and obligations of all parties to jointly owned properties such apartments, commercial units and masterplanned communities.
Implementation of the guidelines begins today and the effect will be to immediately transform the nature of ownership of a major slice of Dubai’s total property stock while introducing a new form of ownership blending freehold and commonhold of communal areas. The new ownership structure is underpinned by a survey and measurement regime which guarantees the scope and extent of ownership rights.
The effect will be to strengthen, extend, and clarify the rights of owners. Announcing the guidelines, Sultan bin Butti bin Mejren, Director General of the Land Department, said, “The implications of releasing these guidelines today are profound and far reaching for owners, developers and Dubai’s property sector in general.” He said, “The effect is wholly beneficial and the sector has been given a strength and depth which all sections of the market will appreciate. Those who take on joint ownership as a result of their purchase of an apartment or office, for example, and with specific rights to communal areas, have been empowered by the provisions of the guidelines.” He added, “These guidelines are very necessary and bring a new type of real estate ownership to Dubai, categorically defining the rights of individuals on one hand, of residential communities on the other, and establishing the balance between the two.” “They add impetus to our push for more professional regulation and confirm our commitment to protecting the rights of individual owners and the integrity of the mechanism of joint ownership. A clear statement of the rights, obligations and duties of each participant; owners, owners association, the board and management, for example, is absolutely essential to building a framework for a type of ownership which works. This is what we have achieved with these guidelines,” he said.
The guidelines comprehensively outline the core legislation – Civil code No.5 of 1985 and Law No.27 of 2007 – and the four Regulations which have been developed from these. The four enabling regulations which form the basis of the guidelines include: General Regulation, Jointly Owned Property Declaration Regulation, Constitution Regulation, and the Survey Regulation. Together, these offer a comprehensive and rigorous framework of rights and obligations for all parties to a jointly owned property.
Mohammed Khalifa bin Hammad, RERA’s Regulatory Department Director of Real Estate Relations, said, “The provisions of the guidelines sets out clearly the rights of purchasers of units in relation to the real estate developer. They establish that such rights apply prior to and through purchase and establishes buyers participation in Owners Associations and their rights resulting from the payment of sums designated for service charges.” He said, “The effect is to clarify rights and responsibilities and give everybody a clear statement not only of the boundaries of their properties but also to their responsibilities to other owners and, in the case of developers, where their ability to impose rules and conditions stop. For example, there are provisions to restrict developers’ ability to enter into supply agreements on behalf of Owners Associations. At the same time the guidelines establish procedures to deal with owners’ breach of ‘community rules’ and even the appointment of administrators by RERA to temporarily administer a development.” He added, “These guidelines signal a major step forward in guaranteeing the rights of owners of jointly owned property and in empowering them to manage their communal estate.” The guideline sets out in detail the information which must be included in mandatory documents such as the Declaration and Owners Association Constitution and sets out the rules and internal procedures for appointing board members, approving budgets, passing resolutions and the role of managers.
One of the guidelines most significant provisions is for a new Survey regime. This governs all aspects of the work, duties and responsibilities of surveyors in preparing plans for developments and setting the dimensions of units – calculating ‘area entitlement’. Eng Ali Ghafan, Head of the Survey Section in the Land Department, said: ‘This Department will offer two things to the new framework – regulation and direction.
“We will regulate the work of surveyors and the effect of this will be absolute clarity and that the owners, purchasers and indeed developers will know not only the dimensions of their properties but their rights over communal areas and to various services. But the second aspect of what we do is equally important. We have created the templates which will give surveyors a clear structure within which to work. We will make it possible for the work of surveyors to be guaranteed, which will encourage confidence,” he said.
Mr. Bin Butti said, “Through these guidelines, Dubai is once again leading the way in developing its property law to offer everyone involved in the real estate sector the best and safest environment within which to both conduct business and utilise the facilities they have developed or bought.
