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TRANSCRIPT
The obvious -
Dubai is experiencing development on scales
of size and complexity that are unique in the
world today.
The way these development projects are
titled, subdivided and managed will be critical
to –
• Their smooth operation in the future
• The integrity of the Dubai real estate market
The challenge -
To achieve laws that are:
• Regional specific (not transplanted)
• Sensitive to economic, cultural, political and
social conditionssocial conditions
• Based on best practice
• Able to cope with the range of projects in the
Emirate
The reality -
These laws:
• Will not be perfect
• Will need to evolve as local • Will need to evolve as local
conditions change
• Will need regular review
• Will require innovative application
Projects to be accommodated
• Stand-alone high rise apartment buildings
• Large and complex mixed use buildingsbuildings
• Master planned communities (comprising
multiple uses and multiple housing types)
• Master developer arrangements
• Staged developments
Dubai Strata Title Law
Session 3
PROPOSED DEVELOPMENT AND MANAGEMENT
MECHANISMS
Gary Bugdenwww.garybugden.com
Development and management
mechanisms
• Subdivision of a building into units and common areas (i.e. conventional strata title)
• Subdivision of a building into volumetric lots (i.e. a non-strata title subdivision)lots (i.e. a non-strata title subdivision)
• Subdivision of part of a building into units and common areas (i.e. subdivision of a volumetric lot)
• Subdivision of land into units (plots) and common areas (i.e. conventional community or group title)
• Owners Associations
Before proceeding with more mechanisms –
Let’s consider the ones Let’s consider the ones already identified!
Volumetric lot subdivision
MIXED-USE
BUILDING
VOLUMETRIC
SUBDIVISION
PLAN
OFFICE
TOWERHOTEL SHOPS
Umbrella
Management
Agreement
(BMS)
LAND
AND
BUILDING
SUBDIVISION
PLAN
COMMERCIAL
OFFICES
COMPONENT
RETAIL
COMPONENT
Offices
Owner
Retail
Owner
RESIDENTIAL
COMPONENT
UMBRELLA
MANAGEMENT
AGREEMENT
(BMS)
Part-building stratasubdivision
SITE PLAN
COMMON
AREAS
DIRECTOR
or
BOARD
UNITS
MASTER
COMMUNITY
DECLARATIONOWNERS
ASSOCIATION
DEVELOPMENT
LAND
SITE
PLAN
HOTEL
PLOT
SHOPPING
VILLAGE
PLOT
RESIDENTIAL
DEVELOPMENT
PLOT
GOLF
COURSE
PLOT
MARINA
FACILITIES
PLOT
Hotel
Owner
Shops
Owner
Golf
Owner
Marina
Owner
SITE
PLAN
Master
Community
Declaration
Master
Community
Declaration
FIRST
LAYER
SECOND
LAYER
Resort style land subdivision
FREE-STANDING
HOUSES
DEVELOPMENT
PLOT
VILLA-HOMES
DEVELOPMENT
PLOT
SITE
PLAN
SITE
PLAN
UNITSCOMMON
AREASUNITS
COMMON
AREAS
Declaration
Master
Community
Declaration
Master
Community
Declaration
THIRD
LAYER
Owners AssociationsDEVELOPMENT
LAND
OWNERS
ASSOCIATION
HOTEL
OWNER
SHOPPING
VILLAGE
OWNER
OWNERS
ASSOCIATION
GOLF
COURSE
OWNER
MARINA
FACILITIES
OWNER
OWNERS
ASSOCIATION
(Houses)
OWNERS
ASSOCIATION
(Villas)
UNIT
OWNERS
UNIT
OWNERS
Development and management
mechanisms(Continued)
• 2 and 3 tier Association structures
• Umbrella management agreements (BMS) that run with the land (as an option to replace an
Association)
• Master community declaration • Master community declaration (to allow some
structuring flexibility)
• Staged development (using single or multiple
Associations)
• Long term management agreements (subject
to disclosure)
Structure
LAW
Owners
Association
Regulations
Development
Regulations
Survey
Regulations
Master
Community
Declaration
RegulationsRegulations
Orders/
Instructions/
Designated Forms
Master Community
Declaration
(Prepared by
Developer)
The Law
• Registration of Jointly Owned Property
• Ownership of Jointly Owned Properties
• The concept of a Master Community DeclarationDeclaration
• Rights of support and shelter
• The concept of Community Rules
• Disposal of Units
• Formation of Owners Association
The Law (Continued)
• Membership of Owners Association
• Funding of Owners Association
• Common Areas
• Key obligations of Developers• Key obligations of Developers
• Jointly Owned Property insurance requirements
• Closing provisions
Owners Association Regulations
• Role of the Association
• Membership of the Association
• Representation of Unit Owners
• Management, including:• Management, including:– Powers and authorities
– Record keeping
– Detail on insurance requirements
– Annual service charges
– Settlement of disputes
Owners Association Regulations(Continued)
• Appointment of a manager
• Meeting procedures
• Finances
• Member’s rights and obligations (including • Member’s rights and obligations (including relating to Community Rules)
Development Regulations
• Disclosure of information to purchasers
• Form and content of Building Management Statements
• More detail on warranties• More detail on warranties
• Prohibition of certain types of arrangements
• Provision of utility services
• Other consumer protection matters
Master Community Declaration
Regulations• Description of the development
• Approach to development (i.e. staging, relationships to other parts of the project and other structuring arrangements)
• Architectural and Landscape Code (particularly • Architectural and Landscape Code (particularly where sub-development is being undertaken)
• Utility Services arrangements
• Any special Common Area arrangements
• Project specific easements and covenants
• Identification of Unit numbering
• Allocation of shares in Common Areas
• Community Rules
Survey Regulations
• Plan formats
• Plan and other numbering
• Description of plot(s)
• Delineation of unit boundaries
• Delineation of common property
• Delineation of easements• Delineation of easements
• Requirements for volumetric plots
• Use of sketch plans
• Staged subdivisions
• Correcting errors
• Registration process
• Amendment