Numerous real estate apartments in Dubai are a part of a skyscraper construction with different owners, as seen from the city's skyline. Within a development, villas are frequently found among a group of other residential properties.
It is understandable that not every owner approaches the management of projects in the same way or is responsible for its administration and upkeep. It was required to control the interaction among co-owners to guarantee harmony between these divergent points of view. The Jointly Owned Real Property Law, also known as Law No. 27 of 2007 Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai, provides the required framework for regulating the relationship between co-owners within these complexes.
It is important to grasp and use two crucial terms to comprehend and value this law:
"The entire or any part of a building or land, or both, divided into units intended for individual ownership when sections of such building or land are designated as common areas" is referred to as jointly held real property.
The common areas are the structural elements of the building, the machinery, and the systems for supplying the primary utilities, the lobby, corridors, elevators, the swimming pool, and any other area. The owners would use these areas jointly in terms of their use and enjoyment of the building are all considered common areas. Common areas are the parts of real estate intended for use by the owners and occupiers. The term "common property" refers to real estate that does not include a building and includes things like roads, paths, ponds, and manicured spaces.
The developer must register jointly held real estate with the Dubai Land Department in a specific property register (DLD). The site layout, the jointly owned property declaration (JOPD), and the owners association's bylaws are included in the registration paperwork (OA).
The building plans, the number of units, the usage type(residential, retail, commercial, or a combination of these), and the description of the common areas are included in the JOPD. In addition, the allocation and recording of each unit's "unit entitlement," the rules that will apply to the use of the common areas or the community rules, and information on waste management, water, and energy use are all included in the JOPD of Joint ownership of property in Dubai. Parking spaces, for example, may be designated as exclusive portions of the common areas, with one owner having the only right to use them. Each apartment in Dubai must have a corresponding parking space.
The unit entitlement, which is represented as a percentage and represents an owner's undivided share of the common spaces, is determined by dividing the size of the owner's unit by the total size of all the units in the development. The amount of the yearly service costs each owner must pay to the OA is then determined using this percentage. Naturally, the OA will have a yearly budget that it must adhere to; this is a responsibility shared by all owners.
Each owner has a representative and can participate in the OA's decision-making. According to the unit entitlement, each owner has a certain number of votes concerning their part in a jointly held real estate. Each year, the owners must choose a board of managers to oversee the upkeep and repair of common spaces and the supply of utility services, security, and other associated building management duties.
An OA is recognized as a non-profit entity with a legal personality separate from its members, according to Article 18 of the Jointly Owned Property Law in Dubai, and it is allowed to bring or receive lawsuits in its name. However, not all OAs have access to this status, and the DLD needs specific permission.
The DIFC has its real estate laws and real estate registration authorities. A "strata plan," or jointly held real estate in the DIFC, is controlled under Dubai Law No. 5 of 2007 or the "Strata Law." A lot is referred to as the body corporate, and OA is a unit under the strata system. The fundamental guidelines for managing a strata plan and the laws that apply to the common spaces are quite similar to those that govern jointly-owned real estate.
Developers and facilities management firms will all be held responsible for the upkeep of the property's common spaces and attending to the owners' demands, as evident from the new law's duties. Everything will be controlled and examined by RERA and DLD, including the service level and the associated costs.
Being a part of the UAE real estate community has many benefits, one of which is the government's ongoing support, which comes in the form of intelligent programs designed to protect everyone's interests. Another measure that would increase interest in and foster investor trust in the UAE real estate market is the legislation enabling jointly-owned houses in Dubai. Transparency will further grow due to the DLD and RERA's intense inspection of all stakeholder procedures. Homeowners and prospective investors may feel secure knowing the property they buy will be well-maintained.
RERA has yet to disclose many of the legal details relevant to this law. Still, this statement is a wonderful first step to increasing investor confidence and interest in the UAE Real Estate Market.
Joint ownership of property in Dubai is proving to be advantageous for investors. They can enter the market without paying the whole amount if you let them buy a share of the property. As a result, there is more interest in Dubai real estate, which is advantageous for the economy. If you're interested in purchasing or renting a home, you may get in touch with Dubai's top real estate businesses like our firm.
