Dubai is stuffed to the brim with multi-story highrises and skyscrapers. The majority of these buildings are owned by multiple owners. Dubai recently introduced its Jointly Owned Property law.
This law aims to regulate the stakeholders and incentivize transparency in the administration of a jointly owned property.
- What is a Jointly Owned Property?
- Types of Jointly Owned Property
- Things To Know When Co-Buying A Property in Dubai
- Jointly Owned Property Law
- FAQs
What is a Jointly Owned Property?
Jointly owned property is any piece of property that is split between multiple owners. Usually, joint ownership is shared between husband and wife, friends, business partners, or family members. Joint ownership breaks the cost of a property between multiple individuals, which helps greatly considering Dubai’s housing fees.
Types of Jointly Owned Property
There are two types of jointly owned properties:
- Joint Tenants
- Tenants in Common
Joint Tenants
In joint ownership, the property share is equal among the owners. If one owner passes away, the share is equally divided between the remaining owners. Only up to 4 members can own one property in Dubai.
Joint tenancy is usually preferred by those who want to ensure their property shares are bestowed to their partner after passing. This makes it a common choice for:
- Couples
- Business Partners
- Friends
- Family
Tenants in Common
In Tenants in Common, the property share can be unequally distributed between the owners. If one owner passes away, they can bestow the property share to their beneficiaries as per their will.
Things To Know When Co-Buying A Property in Dubai
Following are some things to know before co-buying a property in Dubai:
- When co-buying a party under tenants in common, it is essential to state which kind of joint ownership is wanted.
- When co-buying a property, the default option is to purchase it under joint tenancy.
- Joint ownership is convenient as it allows property owners to share costs and provide better investments.
- Joint ownership can be detrimental during disagreements between the company partners.
- The decision-making process can be prolonged because every decision requires unanimous approval from each property owner.
Don’t know how to go about purchasing property? Here’s the legal procedure for buying property in Dubai.
Jointly Owned Property Law
Dubai has set up various laws and regulations to ensure cooperation between the co-owners of a jointly owned property. The jointly owned property law “Law No. (6) of 2019” aims to amend the jointly owned real property law “Law No. (27) of 2007”.
All parties in the free zones and specialized development zones involved with jointly owned property will be managed by the law. This law further highlights the responsibility of each stakeholder to promote transparency in the administration of a jointly owned property.
Stakeholders
The following stakeholders have been affected by the new law of jointly owned property:
- Real Estate Regulatory Agency (RERA)
- Developers
- Property management companies
- Rent Disputes Settlement Centre
- Legal Auditors
- Investors
- Insurers
- Hotel Operators
- Contractors
The Three Categories
The jointly owned property law has 3 different types of jointly owned properties, which are mentioned as follows:
- Large Scale Projects (or Master Communities)
- Hotel Projects
- Other Simple/Real Estate Projects
Owner’s Committee
The jointly owned property law has disbanded the owner’s association and has replaced it with the owner’s committee. A developer will be appointed by a RERA-approved management company to serve as the project’s managing agent. The managing agent’s job will be to execute the functions of the formerly owner’s association.
An owner’s committee will comprise nine individuals appointed by RERA. This committee will represent the entire owner’s body.
Role of Rent Dispute Settlement Centres
Following the jointly owned property law, all disputes that cannot reach an amicable resolution will be overseen by the Rent Disputes Settlement Centre (RDSC). The RDSC will have the exclusive right to settle disputes stemming from the new jointly-owned property law.
FAQs
There are plenty of services available that can help you pick out properties. Here is our Dubai Land Department awareness guide.
There are two kinds: Joint tenants and tenants in common. Both offer different benefits depending on the preferences of the owners.
The jointly owned property law has helped a lot by clarifying the stakeholders’ responsibilities. Thanks to these regulations, you can find transparency in a jointly-owned property.
For more information on real estate, check out our blog on rent-to-own properties in Dubai.
