HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued Law No. (6) of 2019 on the ownership of joint properties in the Emirate of Dubai. Dubai, including private development zones and free zones.

Shared Properties

Law No. (6) of 2019 on the ownership of joint real estate stipulates that the Dubai Land Department shall prepare a special register for joint real estate, including the lands owned by the developers, on which the joint properties will be established, as well as the units allocated to the independent ownership of the common property, which it sells. Developers, names of owners of such units, members of the owners committee, and building management system prepared in accordance with the regulations issued by the Department, which sets out the maintenance procedures for the common parts defined by law as the designated parts of the common property for joint use Leave to the owners and occupants of the units shown in the site plan.

The register shall also include the percentage of the owners' participation in the related costs, including the equipment and services in any part of another building, the plans, and the direction of the administration that manages the common facilities, the common property or the common parts, in accordance with the provisions of this law, including the developer or a company. The management or hotel project management company, as the case may be.

Title deed

In accordance with the law, the plans and the system of the complex form the basis that includes the terms and conditions governing the development and operation of the main project and the common properties and the common facilities therein, including the planning and building standards of the complex, as well as the statute, and the building management system, part of the title of the joint property. In Dubai with their original copy.

Components of parts

The law defines the components of the common parts of the buildings, including: the structural parts of the common property, including the main pillars, foundations, columns, structural walls, ceilings, roof and stair links, staircases, façades, roofs, thresholds, corridors, parking corridors, entrances and exits, and windows on exterior walls. All unless the site plan includes otherwise.

Area ownership

The law regulates the ownership of the areas allocated to the developer.When the project plan or site plan is approved, for the first time, and after obtaining the approval of the Land Department and the competent authority, it may define areas owned by the developer in the project or site plan, which they prepare for private, commercial or investment use.

According to the law, joint properties for the purpose of managing the joint parts are divided into three categories:

The first is the major projects, which are determined in accordance with the criteria set by the Director General of the Land Department in this regard. The developer is responsible for the management, operation, maintenance and repair of common parts and utility services.

The second category includes: hotel projects, which are the projects that the developer must entrust to manage the joint parts of the hotel project management company, in accordance with the guidelines approved by the Director General of the Department of Land and Property in this regard.

The third category includes real estate projects other than major projects and hotel projects.The joint parts of these projects are managed by specialized management companies, which are selected and contracted by the Real Estate Regulatory Authority in accordance with the rules and principles to be determined by a decision issued by the Director General of the Land Department in this regard.

Owners Committee

The law stipulates that the owners committee for real estate projects shall be formed for the first and third categories stipulated in this law, provided that the number of members of the owners committee does not exceed nine members, including the chairman and vice-chairman of the owners committee, and that the Real Estate Regulatory Authority shall select them. Not less than 10% of the total number of units in the joint property, in the name of the owners of these units, in the real estate register with the Land Department.

In accordance with the law, the Owners Committee shall perform several tasks, including: Verifying the management of the management, operation, maintenance and repair of the common parts, in accordance with the provisions of this law and the decisions issued pursuant thereto, and the building management system, and reviewing the annual budgets prepared for the maintenance of the common property and providing the necessary recommendations thereon.

Services allowance

The law stipulates that the landlord shall pay the share of the service allowance to the administration, which is the annual financial allowance collected from the landlord to cover the expenses of administration, operation, maintenance and repair of the common property.This share shall be determined by the percentage of the area constituted by the unit of the total area of ​​the common property.

According to the law, the management is prohibited from imposing or collecting any financial allowances of any kind from the owner, for the management, operation, maintenance and repair of common parts or facilities, or for any other reason, except after obtaining the prior approval of RERA.

It is prohibited for the developer or the management to take any action against the owner that prevents him from receiving or benefiting from the unit, or the common parts or facilities, in order to oblige him to pay the services or use allowance, contrary to the procedures stipulated in this law and the decisions issued pursuant thereto.

Repair parts

The law requires the administration to provide a bank guarantee to the Department of Lands and Property, at the value it determines, for all the joint properties it manages, to ensure the repair of damage to the common parts or common facilities, as a result of negligence or default of the administration, and if it affects the common property or its parts Damages arising from the action of the management, or due to negligence or negligence in its work, the Real Estate Regulatory Authority may, by written notice, request the management to repair such damages within the period specified by it.

incompetence

The law stipulates that if the developer or hotel project management company is found to be incompetent or capable of administering the joint property or the joint parts of the first and second categories provided for in this law in a manner that ensures its sustainability and suitability for service, the Executive Director of the Regulatory Authority may Appointment of a specialized management company to manage and operate such joint property or its parts, and shall apply in case of inefficiency or inability of the master developer to manage the facilities involved in the master project, as to ensure its sustainability and validity. Service.

If the RERA deems the management company to be inefficient, ineffective, or capable of managing and maintaining the parts involved in the third category real estate projects provided for in this Law, the RERA may appoint an alternative management company to manage the joint property.

Property modifications

According to the law, the owner of the unit in the joint property may not make any substantial changes or changes to the structure or external appearance of the unit, or any part of the joint property, without the approval of the main developer, the Dubai Land Department and the competent authority to issue building permits. The plans of the regions in the Emirate, without prejudice to the building regulations in force in Dubai.

The occupant of the real estate unit is responsible for repairing the damage arising from the change or modification at his own expense, in the manner determined by the principal developer or RERA.

Developer responsibility

The law stipulates that the developer is responsible for repairing or correcting any defects in the structural parts of the joint real estate. The period of responsibility is limited to 10 years, starting from the date the developer obtained the completion certificate for the real estate project he developed, all taking into account the contractual provisions stipulated in the law. Federal Law No. (5) of 1985 on Civil Transactions, and the developer's responsibility to repair or replace defective installations in the common property shall continue for one year from the date of delivery of the unit to the owner.

Property insurance

In accordance with the law, the management body is obliged to insure the joint property to ensure its maintenance or reconstruction, in case it is burned, destroyed or destroyed for any reason, provided that the management body is the beneficiary of this insurance, and the management body is obliged to insure the joint property against liability for damages and injuries. The premiums payable to the owners are calculated in accordance with the insurance contract entered into with the insurance company and within the cost of the service allowance.

Dispute Settlement

The law granted the Center for Settlement of Rental Disputes in Dubai, in addition to its powers, under the legislation in force and in particular Decree No. (26) of 2013, the power to consider and resolve all disputes and disputes relating to the rights and obligations set forth in this law and the decisions issued pursuant thereto The Center's procedures in this regard.

Penalties and sanctions

The law stipulates that anyone who commits any of the acts constituting a violation of the provisions of this law, and the decisions issued pursuant thereto, shall be punished with a fine not exceeding one million dirhams, and the value of the fine shall be doubled if the same violation is repeated within one year from the date of the previous violation. Acts which constitute a violation of the provisions of this law and the fines imposed on each of them shall be determined by virtue of a decision issued in this regard by the President of the Executive Council of the Emirate of Dubai.

Reconciliation

Law No. (6) of 2019 on the ownership of joint real estate requires all developers, management companies and owners' associations to adjust their status in accordance with the provisions of this law, within six months from the date of its entry into force, and the Director General of the Department of Lands and Property may extend this period for a similar period if necessary. The provisions of this law shall not prejudice the contracts concluded between the developer and the owner, concluded prior to its implementation, as well as the system of the basic complex, adopted by the Real Estate Regulatory Authority, and deposited with them, except the formation of owners' associations.

The new law on the ownership of common property in the Emirate of Dubai shall be published in the Official Gazette and shall come into force 60 days after its publication.

- Require the property management authority to provide a bank guarantee to ensure the repair of damage.

- 6 months to reconcile all developers, management companies and owners' associations.

- A fine of one million dirhams for violating the provisions of the law, and doubling them when the violation is repeated.