Published: Jan 22, 2020

Compliance with the New Jointly-Owned Property Law

4 September 2019 saw the introduction of Law No. (6) of 2019 Regulating the Joint Ownership of Real Estate in the Emirate of Dubai (the “New JOP Law”). The New JOP Law came into force on 18 November 2019 and repeals Law No. (27) of 2007.

This was followed on 25 December 2019 by RERA Circular No. (2/2019) Regulating Common Property Management Companies, which serves as a timely reminder for all developers and other stakeholders (collectively the “Stakeholders”) to ensure that projects are in compliance with the New JOP Law. Generally speaking, this will require a review of the current governing documents that are in place for a project (i.e. such as the Jointly Owned Property Declaration and/or existing building management statement (the “Governing Documentation”)) and considering what amendments will be required to align with the New JOP Law.

In accordance with Article 48 of the New JOP Law, Stakeholders are required to comply with the New JOP Law by no later than 18 May 2020. Failure to comply may result in the imposition of fines up to AED 1,000,000. A repeat offence within a twelve (12) month period may trigger further fines of up to AED 2,000,000.

Given the above implications for non-compliance, it is crucial that all Stakeholders:

  • have an understanding of how they, and their projects, are affected by the New JOP Law; and
  • take the necessary steps, in so far as is currently possible, to comply the New JOP Law by no later 18 May 2020.

We understand that RERA is still finalising the accompanying directions that will supplement the New JOPD Law and provide further guidance on how RERA will interpret and apply the New JOP Law (the “Directions”). Al Tamimi remains in constant contact with RERA in this regard and we will keep our clients updated as to the status of the Directions.


How can we help

Al Tamimi & Company can assist you by:

  • providing you with general advice regarding the (i) New JOP Law and (ii) how the New JOP Law affects your Governing Documentation and the overall operation of the Project in general having regard to the New JOP Law and the guidance received from RERA; and
  • supporting and representing stakeholders before RERA to discuss the implications of the New JOP Law on their project.

Additionally, our February Edition of Al Tamimi’s Law Update publication will include an article providing clients with a high level overview of the New JOP Law and how it differs to the recently repealed Law No. (27) of 2007.


Key Contacts

Tara Marlow
Partner, Head of Real Estate, Hotels & Leisure

Mohammed Kawasmi
Partner, Real Estate

Andrew Balfe
Senior Counsel, Real Estate

Sebastian Roberts
Associate, Real Estate

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Disclaimer: This chat service should not be relied upon as a substitute for professional advice which takes account of your specific circumstances and any changes in the law and practice. No warranty is made as to the accuracy or completeness of the information provided via this service and no liability is accepted by Al Tamimi & Company Limited, its affiliates, partners or employees for any loss arising as a result of reliance upon the information provided.

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