The Dubai Multi Commodities Centre Authority (DMCCA), which oversees and regulates the DMCC free zone, recently hosted some 170 real estate developers at an in-depth information session, aimed at increasing understanding and impact of the recently introduced Law on Ownership of Jointly Owned Properties, commonly known as the “Strata Law.” Marwan Bin Ghalita, Chief Executive Officer, Real Estate Regulatory Agency (RERA), an affiliate of the Dubai Land Department, was also present at the session, and commended DMCCA’s effort to communicate proactively with the developers.
This legislation, which came into effect on April 1, 2008, relates to the ownership and management of jointly owned common property, which includes shared facilities in Dubai’s property developments, including parking areas, lifts, pools, gyms and gardens.
In his welcome address, Ahmed bin Sulayem, Executive Chairman, DMCC, said the new law will provide a boost to Dubai’s real estate sector, benefiting residents, investors and developers. “The introduction of the Strata Law will further protect real estate investors and eradicate grey areas in the property market. By organising a direct platform for developers to interact and ask questions, DMCC hopes to spread awareness about the law and its implications.”
The presentation detail was advanced by Gary Bugden, Australian Strata Law expert and an advisor to the Government of Dubai on the enabling regulations for the emirate’s own legislation. Gary Bugden was invited to address the gathering by DMCCA in line with its vision of taking proactive steps in engaging developers on property law issues and asset management best practices.
The Strata Law, introduced by the Government of Dubai through RERA, vests ownership of common areas with property owners, allowing for the formation of owners associations to oversee and delegate the management of these areas.
“The law is designed to handle the day-to-day management of facilities and introduce a simple but comprehensive system of rights, obligations and responsibilities,” said Phillip Caraiscos Executive Director, Asset Management, DMCC who chaired the information session. “Owners and developers often find it difficult to understand the different aspects of the law and the monetary issues associated with it.”
The information session highlighted the kinds of titles DMCC will transfer to developers using volumetric subdivision, including its benefits and impact on the apportioning of Master Community Charges and Building Service Charges according to usage. ”With this law in place, DMCC will be able to adopt titling possibilities to effectively manage our Jumeirah Lakes Towers community for the benefit of all stakeholders,” he added.
DMCCA, as Master Developer and owner of the Jumeirah Lake Towers development – a prestigious mixed-use, free-zone, freehold community also announced the establishment of a strategic alliance with the Owners Association Management division of Nakheel Asset Management, who are recognised experts on this newly introduced legislation, currently managing over 9,750 apartments through 125 owners associations to date.
About DMCC
DMCC was created in 2002 as a strategic initiative of the Dubai Government to establish a commodity marketplace in Dubai. Rated 'A' by Standard & Poor's, it provides the market infrastructure that brings together a wide range of commodities activities, and is committed to serve the needs of participants in the gold, diamonds and commodities markets. Resident companies of DMCC are offered highly attractive benefits under a free zone status, including a 50-year guaranteed tax holiday, 100 per cent business ownership, full ownership of business premises, and a secure regulated environment.
