New Rule Empowers Home Owners

Dubai's developers have six months to hand control to home owners associations (HOA) since the Land Department added the much-awaited regulations or guidelines accompanying the ‘strata law' Wednesday. "Transparent strata management guidelines are essential to the property market stability and will provide a range of benefits boosting confidence of foreign investors, increasing property values and allow residents to enjoy quality life and peace of mind," said Peter Crogan, chief executive officer at BCS Strata Management Services. The guidelines, implementing Law No. 27 of 2007 ‘Concerning Ownership of Jointly Owned property in The Emirate of Dubai', known as the ‘strata law', give home owner associations control over who maintains their units, chose service levels and costs and with that control the much-disputed service fees.

Developers now have six months to bring their existing projects under the law, said Gary Budgen, Executive Chairman at PRDNationwide Middle East. As an international strata law specialist he has been assisting with drafting the regulations. In essence, this means that developers have to register their sub-division plans, defining common areas and private units, as well as create home-owners associations. "It's a very positive step, but I believe Rera [Dubai's Real Estate Regulatory Agency] is aware that implementation problems will occur which would require adjustments along the way," Budgen said. Developers could try to prepare documents, such as on common areas, for the handover in their favour rather than that of the home owners, he cited.