Owners' Association not mandatory for DIFC properties

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), Emirates 24|7 can reveal.

An official told this website that projects within the DIFC were governed by different regulations to those outside the DIFC. “Establishing an Owners' Association is neither mandatory nor necessary for a developer for projects located in the DIFC since the developments are governed by the Real Property and Strata Title Laws and Regulations," a DIFC official told Emirates 24|7.

"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.”

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.

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