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PR Newswire
24-11-2019, 09:09 AM
Dubai issued in September a new pertaining to the joint ownership of real estate in the emirate. Law No. (6) of 2019 outlines the procedures concerning the maintenance of buildings and common areas in addition to what share of costs each owner should pay.
One of the key changes under the new law is the abolition of existing owners’ associations and transferring the rights and obligations, including the responsibility for the management, operation, maintenance and renovation of the common areas in a jointly owned real property (JOP) to management entities (MEs), according to Dubai-based law firm BSA Ahmad Bin Hezeem & Associates.
“MEs will now be responsible for procuring insurance policies, to ensure maintenance or reconstruction in cases of fire, demolition and destruction,” says Shaikha Al Shamsi, associate at BSA, which recently signed an agreement with the Dubai Land Department “to streamline Dubai’s real estate sector processes”.
In addition, she says funds collected by the MEs from the owners of the units to cover expenses related to management, operation, maintenance and renovation shall be pre-approved by the Real Estate Regulatory Agency (Rera) and deposited in a special account with one of the licensed banks.
Calling this a landmark initiative, Paula Wehbeh, head of international business development at Ellington Properties, says the new law will add to investor confidence and the competitiveness of Dubai’s real estate sector. “Bringing more transparency to homeowners and investors, the law will ensure international investors the same level of trust and confidence they have while investing in Dubai’s realty as they do in their home countries,” she says.
https://gulfnews.com/business/property/d...1.67908077
One of the key changes under the new law is the abolition of existing owners’ associations and transferring the rights and obligations, including the responsibility for the management, operation, maintenance and renovation of the common areas in a jointly owned real property (JOP) to management entities (MEs), according to Dubai-based law firm BSA Ahmad Bin Hezeem & Associates.
“MEs will now be responsible for procuring insurance policies, to ensure maintenance or reconstruction in cases of fire, demolition and destruction,” says Shaikha Al Shamsi, associate at BSA, which recently signed an agreement with the Dubai Land Department “to streamline Dubai’s real estate sector processes”.
In addition, she says funds collected by the MEs from the owners of the units to cover expenses related to management, operation, maintenance and renovation shall be pre-approved by the Real Estate Regulatory Agency (Rera) and deposited in a special account with one of the licensed banks.
Calling this a landmark initiative, Paula Wehbeh, head of international business development at Ellington Properties, says the new law will add to investor confidence and the competitiveness of Dubai’s real estate sector. “Bringing more transparency to homeowners and investors, the law will ensure international investors the same level of trust and confidence they have while investing in Dubai’s realty as they do in their home countries,” she says.
https://gulfnews.com/business/property/d...1.67908077