news new property legislation from rera

 

 
 
 
 
 
 
 



News Releases
 
New Property Legislation from RERA
 

Dubai’s Real Estate
Regulatory Authority
(RERA) has unveiled
new legislation to
give responsibility
to the developers
for any structural
damage to a property
for 10 years after
project completion
which is expected to
take effect during
the month of April –
May 2008. The aims
of the new law are
to monitor real
estate development
brokers, prevent
fraudulent
activities, and to
increase investment
rates. According to
the legislation, the
developer will be
fully liable for all
structural damage
for 10 years (e.g.
cracks on the walls
caused by heavy rain
or flooding); for
any defective
installations such
as plumbing,
mechanical and
electrical problems
for up to a year
after project
completion. Mr.
Marwan Bin Gallita,
CEO of RERA stressed
that the owner must
insure the building
to cover the risk of
such things as
demolition or
collapse in order to
protect the
homeowner. Every
jointly owned
property must have
an Owner’s
Association in
accordance with
article 17 of the
new strata law.
According to the new
law, all owners
associations will
become legal bodies
with bank accounts
and contracts for a
group of owners and
the ability to sue
and appear in court
under its name. The
owners association
shall become legal
bodies once a
license from the
Land Department is
obtained. They will
be responsible for
the management,
operation and
maintenance of all
common areas of the
development. They
will also maintain
comprehensive
insurance of the
jointly-owned
property and will be
beneficiaries of
this insurance. Each
unit owner will pay
his/hr insurance
premium to the
owners association.
According to Mr.
Marwan Bin Gallita,
CEO of RERA, the new
buyers of unit
within a
jointly-owned
development will now
have full access to
records, diagrams,
financial
statements, and be
able to review all
the history before
buying. This is to
achieve confidence
and security in the
market.

 


 
 


Copyright © 2007-2010 The Advocates. All Rights Reserved