Friday, June 22, 2007

DIFC passes the Real Property Law

The Dubai International Finance Center (DIFC) Authority, after their sixty days consultation period, has passed the Property Ownership Laws, according to reports, yesterday.

The DIFC LAW Number Four of 2007 (Real Property Law) and (DIFC Law Number Five of 2007) Strata Title, as well as regulations that complement the laws have been endorsed by The Vice President and Prime Minister of UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum. The laws and regulations will take immediate effect.

The Law guarantees the ownership of freehold buildings and lands, and other interests in land within the DIFC.

The Law, though basically follows the English common law, also incorporates the Torrens system of land registration, which is popular in Australia, Canada, New Zealand, and Singapore.

As per this law, the land transactions can be registered in a central register, administered by the DIFC. The title interests that are already registered in the DIFC are "indefeasible."

Individuals opting to purchase property in the DIFC, or planning to lease or rent, or lend on the security of real estate in the DIFC, can rest assured that their investment is safe and is fully supported by the protection of the law.

The Strata Title Law establishes a system of guaranteed freehold title for units in buildings within the DIFC.

The law provides a combination of the benefits of guaranteed titles, clubbed with an administrative structure that has been designed to take care of day to day management of the buildings.

The DIFC says, it will help in overcoming the complexities of co-owners association constitutions, master community declarations, etc., through introduction of simple, but comprehensive system of rights and responsibilities.

The law, inline with the DIFC's mission as an International Finance Center, also provides an internationally proven system for registering real property ownership.

No comments: