Concerning Ownership of Jointly Owned
Properties in the Emirate of Dubai
, Mohammed bin
Rashid Al Maktoum, Ruler of the Emirate of Dubai
Taking cognizance of:–
Federal Law No. 5 of 1985
regarding civil transactions and its amendments;
And Law No. 7 of 2006
regarding property registration in the Emirate of Dubai;
And Regulation No. 3 of
2006 regarding determining designated areas where
non-citizen can own property in the Emirate of Dubai,
Issue the following Law:
Chapter One
Definitions and General Provisions
Article (1)
This Law shall be called
Law No. [27] of 2007 regarding Ownership of Jointly Owned
Property in the Emirate of Dubai.
Article (2)
The following words and
expressions unless the context otherwise dictates shall have
the following meanings:
Emirate:
Emirate of Dubai
Department:
Land Department
Chairman:
Chairman of the
Department
Registry:
The property
registry maintained at the Department
Master
Developer:
The person who is
licensed to engage in the property development and
sale of Units in the Emirate under the terms of a
Master Community Declaration.
Sub-Developer:
the person who is
licensed to engage in the property development and
sale of Units and granted the right from a Master
Developer to develop part of a development project
in accordance with the terms of the Master Community
Declaration applying to that project.
Jointly Owned Property:
The whole or part
of a building or land, or both, divided into Units
intended for separate ownership where part of such
building or land has been designated as Common
Areas..
Unit:
Any flat, floor,
a part of land or house (villa) connected or not
connected with another house being part of a Jointly
Owned Property.
Common
Areas:
Those common
parts of Property designated for common use by Unit
Owners and Occupiers and shown in the Site Plan.
Site
Plan:
A plan registered
in the Register showing the Units and its Common
Areas.
The
Owner:
The person who is
registered as an owner of a Unit in the Register,
including persons with a long term lease or usufruct
right for limited period and also the Master
Developer or the Sub-Developer in regard to unsold
Units.
Master Community
Declaration:
The terms and
conditions governing the development and operation
of Jointly Owned Property.
Building
Management
Statement:
A document
complying with relevant regulations and registered
on the Register that sets out arrangements for
maintenance and cost sharing relating to Common
Areas and facilities, and including equipment and
services in any part of other building which is
subject to this law.
Owners’
Association:
An association
constituted in accordance with article 17 of this
Law.
Association Constitution:
The rules and
regulations that governs the Owners’ Association,
which shall be issued in accordance with this Law.
Occupier
Whoever leases a
Unit (other than a long term lease) and any visitor
of a Unit Owner.
Utility Service:
Any
of the following services: –
water reticulation or supply;
gas
reticulation or supply;
electricity supply;
air
conditioning;
telephone service;
computer data or television service;
a
sewer system;
drainage;
a
system for the removal or disposal of garbage or
waste;
a
system for the delivery of mail, parcels or
goods;
any
other system or service designed to enhance the
Utilities of Units or Common Areas.
Article (3)
Lands owned by
Developers and used as Jointly Owned Properties (and the
Units sold by said Developers ) shall be registered with
the Department.
Where a Unit in an
existing Jointly Owned Property is used by the Owners of
another Jointly Owned Property, the Owners Association
for the second Jointly Owned Property becomes a member
of the Owners Association for the first Jointly Owned
Property.
Article (4)
The Department shall
prepare and maintain special registers for the Jointly Owned
Properties and their owners and shall issue appropriate
title deeds and regulate the sale, mortgage (or any other
disposal) of said Jointly Owned Properties and the
registration of long term lease contracts and usufruct
rights related to these Jointly Owned Properties. Access to
those registers shall be provided to all concerned parties.
Article (5)
Article (4) of Law No (7)
of 2006 concerning property registration in the Emirate of
Dubai shall apply to ownership of Jointly Owned Property.
Chapter Two Ownership of Jointly Owned
Properties
Article (6)
The Site Plan and the
Master Community Declaration and the Association
Constitution form part of the title deed of Jointly
Owned Property and shall be attached thereto, and the
Department shall keep an original copy of the Master
Community Declarations at all times.
Each Unit Owner has
an obligation in favor of other Unit Owners, Occupiers
and the Owners’ Association to comply with the Master
Community Declaration and the Association Constitution.
Each Occupier has an
obligation in favor of other Unit Owners, Occupiers and
the Owners Association to comply with the Master
Community Declaration and the Association Constitution,
to the extent to which their provisions apply to an
Occupier.
Article (7)
1-
Unless otherwise
indicated on the Site Plan, the Common Areas of
Jointly Owned Property include, without limitation
(a)
Structural elements
of Jointly Owned Property including the main
supports, foundations, columns, beams, structural
walls, steps, ceilings, ceiling joists, hallways,
staircases, stairwells, emergency exits, entrances,
windows located on exterior walls, facades and
roofs;
(b)
Parking areas,
watchman rooms, recreational facilities and
equipment, swimming pools, gardens, storage
facilities, places designated for use by the Owners
Association or whomever it assigns or contracts to
manage the Jointly Owned Property;
(c)
Main utility
equipment and systems including electricity
generators, lighting systems, gas systems and
equipment, water systems, heating and cooling
systems, air conditioning systems and waste storage
and treatment facilities;
Water mains, sewer
pipes, ventilation shafts, gas pipes and flues and
electrical wiring and conduits serving more than one
Unit;
(f)
All fittings,
connections, equipment and facilities used by more
than one Unit Owner;
(g)
Any device for
measuring the reticulation or supply of utilities;
(h)
All other parts
which are not located within the boundaries of a
Unit, that are necessary and required for the
existence, maintenance or safety of the property
(2) Unless otherwise
indicated on the Site Plan, the Common Areas of Jointly
Owned Property comprising land, other than a building or
part of a building, include, without limitation:
lakes, ponds, canals,
promenades, fountains, water features and other
waterways, including all equipment associated with
them;
Landscaping, open
space areas and playgrounds.
wires, cables,
pipes, sewers, drains, ducts, devices and equipment by
which Units or Common Areas are supplied with Utility
Services; and
measuring or Utility
Service supply devices designated for common use by the
Owners and Occupiers of the Units.
Article (8)
(1)
Unless otherwise
indicated on the Site Plan, each Unit situated in a
building
or part of a building shall include, without
limitation, the following:
a)
Floors, floor
materials and components down to the base of the
joists
and other structures supporting the floor of the
Unit
b)
Plaster ceilings and
all other types of ceilings, additions that form
part of
the internal area of the Unit and spaces between the
ceilings, ceilings
above the support walls and structures inside the
Unit and walls
separating the Unit from the rest of the Jointly
Owned Property and any
adjacent Units or Common Areas
c)
All non-load bearing
walls and non-support walls inside the Unit;
d)
Windows, glass and
fixtures that form part of the interior windows,
lighting systems for the Unit, doors, door frames
and all equipment and
fixtures serving the Unit;
e)
All internal
connections serving the Unit;
f)
All fixtures and
fittings installed by the Unit Owner or Occupier;
g)
All additions,
modifications and improvements made to the Unit from
time to time,
(2)
and for the purpose
of this paragraph the Unit but does not include the
Utility Service situated in the Unit that services
the Common Areas or
another Unit.
Unless otherwise
indicated on the Site Plan, each Unit associated
with
Jointly Owned Property comprising of land, other
than a building or part of
a building, shall include, without limitation,
everything situated within the
boundaries of the Unit, other than the Utility
Service that services the Common Areas or another
Unit.
(3)
Each Unit is entitled
to appropriate support and shelter from the other
Units
and the Common Areas.
(4)
Dividing walls
between adjoining Units shall be shared by both
Owners if they
are part of the Common Areas.
Article (9)
Unit Owners and Developers
with respect to unsold Units own an undivided share of the
Common Areas in the proportions indicated in the Master
Community Declaration unless agreed otherwise..
For the purpose of this
paragraph the proportions to be determined on the basis of
the Unit area out of the total area of the joined property.
Chapter Three Disposal of Units of Jointly
Owned Property
Article (10)
A Unit Owner may sell or
dispose of his Unit by any kind of disposal and also is
entitled to mortgage his Unit in favor of a bank or
financial institution provided that the disposition conveys
the whole of his interest in the Unit and Common Areas.
Article (11)
A Unit co-owned by two or
more persons may not be divided among the co-owners unless
the Department’s approval is obtained.
Article (12)
(a)
Each co-owner of a
Unit has a right of first refusal to purchase
another co-owner’s share in a Unit offered for sale
to a non partner. If more than one co-owner
possesses this right, then they shall be entitled to
purchase proportionally to their existing interests.
(b)
The right of first
refusal does not apply to any sale between spouses,
lineal ascendants, lineal descendants, brothers or
sisters, or their descendants.
Article (13)
(1)
(2)
The right of first
refusal cannot be divided, so it cannot be used or
abandoned unless in whole, and incase of multiple
owners of this right each shall use his right
according to his share, and if one or some of them
abandoned his right then this right shall be
transferred proportionally to their existing
interest
The
right of first refusal shall lapse should the
selling co-owner notify the other co-owners,
through a Notary Public, of the name and address of
the third party purchaser and the conditions of
sale, and the co-owners fail to agree to said
conditions within a period of 1 month after
receiving said notice.
(3)
(4)
In the event a
co-owner agrees to buy he must notify the selling
co-owner through the Notary Public of said intention
within 15 days of receiving notice of the sale and
complete the sale procedures at the Department
within 10 working days from finishing this period.
If it is approved
that the sale was done with better terms to the
benefit of the purchaser from the mentioned terms in
the notification sent to the owners of the right of
the first refusal; they have the right to claim for
compensation for the damage suffered to them in
front of the competent court.
Article (14)
Jointly Owned Properties
registered according to this Law are not subject to the
provisions of Preemption mentioned in the federal Civil
Transaction Law No. (5) of 1985 as amended.
Article (15)
A Unit Owner may lease his
Unit on condition that the Unit Owner and tenant remain
obliged to comply with the Association Constitution and the
Master Community Declaration towards the other Unit Owners,
Occupiers and the Owners Association.
Article (16)
Under no circumstances can
Common Areas be divided. Common Areas may not be disposed
of, in whole or in part, separately from the Units to which
they appertain.
Chapter Four Owners Association
Article (17)
An Owners Association
shall be legally formed upon the registration of the
first sale of a Unit in a Jointly Owned Property in the
Register.
The Association shall
comprise the Unit Owners of the Jointly Owned Property
and the Master or Sub Developer with respect to unsold
units.
A Unit Owner’s
membership in the Association shall commence upon
registration as the Owner of the Unit and shall lapse
upon the expiry of his/her registration as the Owner of
the Unit
Article (18)
The Owners
Association is an establishment not for profit, and has
a separate legal entity from its members, has the right
to sue in this capacity and to own movable assets.
The Owners
Association shall be subject to the provisions and terms
of this Law, the provisions of the Master Community
Declaration and the Association Constitution and shall
be represented before the Courts or other authorities by
its Manager.
Article (19)
Each Unit Owner and
the Developer with respect to unsold units have the
right to attend and vote at meetings of the general
assembly of the Owners Association in accordance with
the Association Constitution.
Each Unit Owner has
a number of votes in proportion to his shares of
ownership in the Jointly Owned Property as indicated in
the Master Community Declaration.
Article (20)
Each Owner’s Association
must mention the name of an “Owners Association”, and number
and name of the Jointly Owned Property, if any.
Article (21)
1-
The Owners’
Association is responsible for the management,
operation and maintenance of the Common Areas and
for that purpose must obtain an appropriate license
from the Department.
2-
The Owners
Association may delegate all or some of its powers
to a person or company it appoints at such
remuneration and on such terms as agreed by the
parties.
Article (22)
Each Unit Owner shall
pay the Owners Association his share of the annual
service fee to cover the cost of management, operation,
maintenance and repair of the Common Areas. Such fee
must be calculated in correspondence with the space of
Unit out of the total space of the Jointly Owned
Property. The Master or Sub Developer shall pay his
share of the fee with respect to unsold Units.
A Unit Owner may not
relinquish his share in the Common Areas in order to
avoid paying his share of the annual service fee.
Article (23)
1-
Save as authorized by
the Owner’s Association or permitted by the Master
Community Declaration, a Unit Owner may not make any
alterations or modifications to the structure or
external appearance of his Unit or any part of the
Jointly Owned Property that would materially affect
the Unit or Jointly Owned Property or its external
appearance.
2-
A Unit Owner who
contravenes any of the provisions of paragraph (1)
shall be liable to repair the resulting damage at
his own expense and in the manner requested by the
Owner’s Association. If the Unit Owner fails to
comply with this requirement, the Owner’s
Association shall repair the damage and recover the
repair costs from the Owner.
Chapter Five Common Areas
Article (24)
Subject to the Association
Constitution, Unit Owners and Occupiers and their guests
must use the Common Areas as designated for, and in a way
that does not compromise the rights of others to use those
areas or disturb others or put their safety or the safety of
the Jointly Owned Property at risk.
Article (25)
The Owner’s
Association shall have a lien on every Unit for unpaid
service fees and any other obligations levied against
the Unit Owner in accordance with the provisions of this
Law or the Association Constitution. This right shall
exist even when ownership of the Unit has been
transferred to a new Owner.
If the Unit Owner
does not pay his share of service fees or defaults on
any of his obligations, the decision of the Manager of
the Association takes against the Unit Owner shall be,
after 3 months of being notified to him through the
Notary Public, enforceable by the Execution Judge at any
Competent Court , and in all cases the suffered person
may object on this decision within that period at the
Competent Court, and the execution must be held till
taking a decision in the subject of the objection.
Chapter Six Obligations of the Property
Developer
Article (26)
1-
With respect to the
construction contract provisions in the Civil
Transaction Federal Law No. (5) of 1985, the
Developer remains liable for 10 years from the date
of completion certificate of the building to repair
and cure any defects in the structural elements of
the Jointly Owned Property notified to him by the
Owners Association or a Unit Owner.
2-
The Developer, in
respect of a development or part of a development
undertaken by him, remains liable for 1 year from
the date of completion certificate of the building
to repair or replace defective installations in the
Jointly Owned Property which, for the purpose of
this Article, include mechanical and electrical
works, sanitary and plumbing installations and the
like.
3-
Subject to the
provisions of paragraphs (1) and (2) above, nothing
in this Law shall in any way affect or impair any
rights or warranties which a Unit Owner may be
entitled to assert against the Master Developer or
the Sub-Developer under any other Law.
4-
The provisions of any
agreement inconsistent with this Article entered
into after this Law takes effect shall be absolutely
null and void.
Article (27)
Incase developing the
Jointly Owned Property on stages the Master Community
Declaration must declare the arrangements of dividing
this project.
If Jointly Owned
Property is confined to only part of a building and no
Master Community Declaration is registered in respect of
the whole building, then a Building Management Statement
must be recorded in the Department Register in respect
of that building.
Chapter Seven Jointly Owned Property
Insurance
Article (28)
An Owners’ Association
must maintain comprehensive insurance in an amount equal to
the repair or replacement value of the Jointly Owned
Property incase of its destruction for any reason and the
Association shall be the beneficiary of said insurance.
Article (29)
The Owners’ Association
shall procure insurance against liability for damage to
property or bodily injury to Owners and Occupiers.
Article (30)
The insurance premiums
payable by each Unit Owner shall be covered by the annual
service fees paid to the Owners’ Association according to
the provisions of article (22) of this Law.
Chapter Eight Closing Provisions
Article (31)
In accordance with
article (18) of this Law, the Owners’ Association may, in
its own name and on behalf of its members, sue others
including other Units' Owners, Occupiers and any other
person occupying the Jointly Owned Property for breach of
this Law or the Association Constitution.
Article (32)
The Chairman shall issue
regulations and decisions required to enforce this Law.
Article (33)
This Law shall be
published in the Official Gazette and shall take effect
three months from the date of publication.
Mohamed bin Rashid
Al Maktoum Ruler of Dubai
Issued in Dubai on: 10
December 2007
Corresponding to: 30 Thu Al Qeada 1428 AH
