All about the joint-ownership property laws in Dubai
Over the past few years, many new real estate laws were introduced to standardise processes and formalise transactions between developers, property investors and other stakeholders in the UAE real estate market. The legislation pertaining to jointly owned properties (JOPs) was one of these real estate laws in Dubai. Continue reading to find out more about the jointly owned property law in Dubai.
The Dubai Joint Ownership Law
When this law was introduced, many investors and homeowners were unsure about its implications and how it would impact them in the long run. Over time, however, the framework has become clearer and more structured.
The jointly owned property law in Dubai, Law No. (6) of 2019, replaced Law No. (27) of 2007. It governs the rights and responsibilities of all parties involved in jointly owned properties, including those in free zones and special development areas.
The law aims to promote transparency in property management by clearly defining the roles of developers, property owners and facilities management companies. It also strengthens the oversight role of the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA).
What were the changes to the law?
Under the law of jointly owned properties in Dubai, the common areas are managed as:
- Master communities (mega projects): Managed, operated and maintained by the master developer
- Hotel projects: Managed by an operator appointed by the developer, in line with DLD regulations
- Other real estate projects: Managed by RERA-approved facilities management companies
The law also clearly defines the roles of each stakeholder involved in jointly owned properties.
Before understanding JOP law for Dubai property owners, you must understand the roles of different stakeholders.
ROLE OF DLD
The Dubai Land Department is responsible for maintaining a register of jointly owned properties. This register includes details such as property owners, developers, management companies and service charge allocations.
DLD also ensures that all documents related to jointly owned properties — including management agreements and bylaws — are properly registered. Developers are required to clearly define common areas and shared facilities within a project.
THE ROLE OF RERA
RERA regulates and oversees the management of jointly owned properties.
Its responsibilities include:
- Approving service charges through the Mollak system
- Monitoring facilities management companies
- Ensuring proper maintenance standards
- Reviewing financial records when required
Facilities management companies must submit regular reports, and RERA can step in if maintenance standards are not met.
ROLE OF THE DEVELOPER
Developers are required to submit all relevant project documents to DLD within specified timelines after completion.
They are responsible for:
- Defining common areas and ownership structure
- Setting up the building management system
- Ensuring compliance with RERA regulations
They also remain liable for:
- Structural defects for up to 10 years from completion
- Defects within individual units for a limited period after handover
In some cases, developers may continue managing common areas, especially in master communities and hotel projects.
ROLE OF THE OWNERS COMMITTEE
Under the current law, Owners Associations no longer function as independent management entities. Instead, they have been replaced in practice by Owners Committees.
These committees:
- Are formed from property owners
- Are approved and supervised by RERA
- Have an advisory role only, not decision-making authority
They help review budgets, monitor management performance and represent owners’ concerns.
Owners are still required to pay their share of service charges, which must be approved by RERA through the Mollak system.
ROLE OF THE FACILITIES MANAGEMENT COMPANY
Facilities management companies are responsible for the day-to-day maintenance and operation of common areas.
They must:
- Be approved by RERA
- Maintain service standards
- Ensure proper upkeep of shared facilities
- Obtain insurance coverage for the property
BYLAWS REPLACE THE JOINTLY OWNED PROPERTY DECLARATION
A Jointly Owned Property Declaration was previously required to be registered with RERA. This declaration outlined the rules for using common areas and units, as well as the duties of owners, occupiers and the developer.
However, as part of the law, the Jointly Owned Property Declaration has been replaced by the bylaws of the complex, the bylaws and the building management system.
BYLAWS OF THE COMPLEX
Article 2 defines the bylaws as “the terms and conditions governing the development and operation of the master project and the common properties and common facilities therein, including the planning and construction standards of the complex. The rules and provisions governing the owners’ committee, which shall be established and adopted in accordance with the provisions of this Law.”
The previously discussed building management system is legally defined as “The document prepared in accordance with the regulations issued by the Department and recorded in the Common Property Register, which states the procedures for maintenance of the common parts, and the percentage of owners’ contribution in the costs related thereto, including the equipment and services existing in any part of another building.”
How will the jointly owned property law in Dubai benefit owners and tenants?
The updated law improves accountability across all parties involved in jointly owned properties. Developers, management companies and service providers are all subject to regulatory oversight.
With systems like Mollak in place, service charges are more transparent and controlled. This helps protect property owners from unfair costs and ensures better maintenance standards.
Overall, the law strengthens investor confidence and makes property ownership in Dubai more secure and organised.
FAQS
What are the rights and obligations in jointly owned properties?
In a jointly owned property, each owner has the right to use their share of the property and benefit from it according to their ownership percentage. Owners also have the right to sell or transfer their own share, unless the ownership structure or agreement says otherwise.
WHAT SERVICES DOES THE DLD PROVIDE FOR JOINTLY OWNED PROPERTIES?
Via Mollak Dubai DLD provides comprehensive services for jointly owned properties, including:
- Applying for the service and utilisation fee
- Approval from DLD for opening a private bank against a jointly-owned property
- Applying for real estate company registration to practise supervision services for jointly-owned properties
- Applying for registering employees with professional competence in joint property management
- Registering an owner’s association
- Approval to accredit an authorised signature for the development’s escrow account
- Approval to appoint a financial auditor for the audit
- Approval/renewal of a financial auditing company application
- Approval for recovery of the project guarantee amount
- Approval to transfer the escrow account from the existing bank to another for a jointly-owned property
IS BUYING A PROPERTY IN DUBAI A GOOD IDEA?
Yes, it is, as long as you are aware of all the things to know before buying property in Dubai to help you make the final decision. If you are in search of a property, take a look at our Market Trends section for key insights.
If you want to invest with your business partner, ownership of jointly owned property in Dubai is also an option. With Mollak, managing a JOP wouldn’t be a problem.
You can also consider a real estate investment visa in Dubai. If you are investing, make sure you follow the compliance requirements for property transactions in the UAE.
WHAT ARE THE THINGS TO CONSIDER WHEN PLANNING TO BUY AN OFF-PLAN PROPERTY IN DUBAI?
What does off-plan property mean, and is it a good investment? Read our comprehensive guide to find out all that you need to know.
IS IT LEGAL TO SHARE ACCOMMODATION IN DUBAI?
Yes, it is. However, there are certain stipulations that need to be adhered to. Here’s our guide on legally sharing accommodation in Dubai.
Jointly owned property law in Dubai has certainly been a success and it has made the processes simpler for all stakeholders involved. Joint ownership of property in Dubai has opened many opportunities for local and foreign investment. So, you can also consider the ownership of jointly owned property in Dubai without any legal concerns. Jointly owned property regulations in Dubai ensure that the rights of all parties involved are protected.
Dubai Land Department’s jointly owned property law is another visionary step taken by the government to facilitate businesses and residents. You can also read about commercial companies law, one of the more recent law amendments.
Despite all these steps, there are times when conflicts do arise. In such cases, the RVS System is a viable option.
