Each development in Dubai comprises not only a number of units, but also common parts designed for common use by unit owners and occupants.
Dubai's Jointly Owned Property Law (Law No. 27 of 2007) establishes a framework for the development and sub-division of developments into such units and common parts, with the sub-division known as ‘jointly owned property'.
Regulations have been introduced to enforce the law, and among other things, they provide that an association of all the unit owners is responsible for the management, operation and maintenance of the common areas.
For each development, the developer must file a "jointly owned property declaration" with the Land Department. Where a development was constructed and occupied as of April 13, the Declaration must be filed by the earlier of (a) October 13 and (b) the date which is 30 days after receipt of a notice from three or more unit owners.
In relation to any other development, the task must be completed when there is an application for registration of the first sale of a unit in the jointly owned property. If the developer does not comply with this timetable, unit owners may take steps to register their own Declaration. The developer would not be able to unregister this document and register his own version in its place. He would also be responsible for the unit owners' costs in this regard. The Declaration binds and benefits all unit owners and occupants as if all such persons had personally signed that document, agreeing to perform its terms. It sets out all the information relating to the jointly owned property, include a plan showing the common areas, a list of all unit numbers, and arrangements for the delivery and use of utilities and details of easements or covenants that burden or benefit the common areas.
Entitlement
Each unit is allocated an "entitlement", this being its share of the ownership of the jointly owned property. Entitlement is important in relation to decision-making by the owners association. It determines the weight of each unit owner's vote at the general assembly. It also determines the proportional share of the service charge each unit owner must pay.
The Declaration will contain a statement of the criteria used for allocating entitlements among the units.
The standard position would be that entitlement is determined by unit area.
On the other hand, if entitlement is determined by reference to the extent to which the respective units draw on the financial resources of the owners association, the Declaration must contain an explanation of how the allocations were determined.
The approval of the Real Estate Regulatory Agency will be required for this non-standard method of calculation of entitlement.
Community rules
The Declaration will contain a set of community rules that apply to the entire development. Among other things, these will include restrictions on use of the units, the common areas and alterations to both.
The rules can be changed by a vote passed by simple majority at a vote of owners held during an association's general assembly. In relation to the Declaration, a simple majority may mean either (a) a majority of the owners present and entitled to vote at the general assembly or (b) a majority of the total value of the entitlements of unit owners who voted.
In contrast, where the Declaration states that a given matter is to be decided by "special resolution", this means two-thirds of all entitlements in the jointly owned property. It does not mean two-thirds of votes cast or two-thirds of the entitlements of unit owners present at the meeting.
Where a unit owner has failed to pay his allocated service charge, he or she is not entitled to exercise his vote. The high level of votes required to change the Declaration highlights the importance for developers and unit owners to get the document right the first time.
(C) Gulf News
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