Dubai: Properties in DIFC are governed by DIFC law and not of RERA

Projects within the DIFC are governed by different regulations

In Dubai you have an Owners Association and all owners are members and an Owners Association Board whilst in the DIFC you have a body corporate and all owners are members and a body corporate committee. Both are formed by law. A developer is not required to set up an Owners Association for property in the DIFC because the Strata Titles Law effectively does that for it. i.e. it is a matter of law that as soon as the subdivision (creating the various unit lots) is registered the Association and all rights etc. are provided by Law.

Contrary to the Dubai Real Estate Regulatory Agency's (Rera) mandate for property developers to set up Owners' Associations (OA) for all their projects, it is not necessary for a developer to establish an OA for projects located within the Dubai International Financial Centre (DIFC).

"Where a developer sells off-plan with a view to selling individual units with their own legal title, the developer would lodge a strata plan of subdivision reflecting how the building is to be subdivided,” he added. “Upon registration of the plan, a body corporate comes into being automatically and the provisions of the Strata Title Law, which encompass the rights and duties attaching to a co-owners association are available at law.” A DIFC Officla told.

Earlier this month, DIFC introduced a new pricing structure that would offer its tenants over 50 per cent in discounts with the rent now starting from $44 or Dh160 per square feet to maximum $76 or Dh280 per square feet in 2011.

However, Dubai’s Rera has made it mandatory for developers to set up owners associations for projects located outside the DIFC jurisdiction. The guidelines for Jointly Owned Property Law (Law No. 27)  were issued in June this year with developers being given a deadline of October 13 to set at least an interim Owners' Association.

 

(C) Emirates 24|7