The amended laws in Dubai introduce notable changes, including a new mortgage fee and an extended registration period for off-plan properties. These amendments aim to enhance the property transaction process while aligning with the region’s evolving real estate landscape.
Changes in Mortgage Registration Fees
The Dubai International Financial Centre (DIFC) announced revisions to its Real Property Law and Real Property Regulations. Among the changes is the introduction of a new mortgage registration fee set at 0.25% of the mortgage amount, applicable to buyers registering their real estate mortgages.
Extended Registration Period for Off-Plan Properties
To better align with the timeline of off-plan property purchases—from initial launch to the finalization of sales agreements—the DIFC has extended the registration period for off-plan sales. The timeframe has been increased from 30 days to 60 days, offering buyers additional flexibility. This extension also provides more time to complete purchase registrations and settle freehold transfer fees, making the process more accommodating for off-plan buyers.
The legislative changes came into effect on November 21, 2024, following their approval on November 14, 2024.
Enhancements to the Application Law
The revisions to the DIFC Application Law include the addition of Article 8A. This article emphasizes the requirement to refer to the DIFC statute and DIFC Court rulings for the interpretation and application of DIFC laws. It highlights that the DIFC legal framework is supported by common law principles, which supplement the DIFC Statute.
The DIFC Courts may also reference the common law of England and Wales and other common law jurisdictions to shape and refine their legal interpretations. However, their authority remains limited to developing specific legal rules and principles rather than implementing broad legislative or policy reforms.
International and Comparative Jurisprudence
The amended article underscores the role of comparative jurisprudence in shaping the DIFC’s common law framework. Key principles derived from established common law jurisdictions can guide the interpretation of DIFC statutes. Moreover, international jurisprudence and commentary on international model laws may also serve as reference points when interpreting DIFC statutes inspired by such models.
Strengthening DIFC’s Legal Foundation
These legal amendments reinforce the significance of English Common Law and advancements in other established common law systems as essential pillars of the DIFC’s legal framework. By integrating international and comparative legal principles, the DIFC aims to maintain its reputation as a leading jurisdiction for legal and commercial excellence.
Published: Nov 25, 2024
Source: https://www.propertynews.ae/uae/amended-laws-in-dubai-include-a-new-mortgage-fee-and-a-60-day-registration-period-for-off-plan-properties/
