New freehold property law planned for Dubai

Freehold ownership of land and property by foreign firms and individuals could be a reality in Dubai under a new law planned for the emirate.

The Dubai International Financial Centre Authority yesterday published a consultation document for the Real Property Law 2006 and the Strata Title Law 2006 acts.

A statement said the first property law is "based on the underlying principles of English common law, but also incorporates the Torrens system of land registration, well known in countries such as Australia, New Zealand, Canada and Singapore. Land transactions are registered in a central register. Once registered, the law certifies them to be fully effective."

Strata Title Law "establishes a system of guaranteed freehold title to units in buildings in the DIFC. It is based on the system originally developed in Australia, but now in use in many countries around the world, including Singapore.

"The law combines the benefits of guaranteed title under the Real Property Law with an administrative structure designed to handle the day-to-day management of buildings. It will help overcome the complexities of co-owners association constitutions, master community declarations, and the like, introducing a simple but comprehensive system of rights and responsibilities."

The statement added that the consultation will run until 6 September 2006, after which date the proposed legislation will be presented to the Ruler of Dubai for enactment in accordance with Dubai Law No. 9 of 2004.