An upcoming addition to the property law is vital for the sustainability of Dubai's property market, industry insiders say.
The Dubai Land Department says the condominium law will define the rights and responsibilities of property owners towards common hold land in freehold developments.
AUAE Strata Global, a community title management company, warns that disputes between owners and developers over maintenance and service of common land (such as swimming pools, parks, car parking and lifts) will continue unless the law addresses the legal rights of owners' associations, the role of the developer after handover, and payment of service charges.
The company, a joint venture between Australian community title management and consulting companies K&G Strata Consultants and Australian Unit Administration (AUA), said frustration over current grey areas is harming consumer confidence and has led some residents to sell their units.
The Land Department recently announced that the condominium law, known is some countries as the strata law, is awaiting signature of the highest authorities and is expected to be in place before the end of the year.
At least 120 new residential towers are scheduled for completion in Dubai within the next 12 months, making it vital to have a comprehensive law in place beforehand, said David Yeates of AUA.
"For Dubai to become a truly globalised city, it will have to accept that the end user's point of view," he said. "If freehold status is issued but not accompanied with the rights that go with it that is to control their own management you could have a problem."
Kent O'Brien, director of K&G Strata Consultants, said the condominium law must create the platform for end users to form owners' associations (organisations made up of all unit owners in a housing development) which have the power operate their own financial accounts.
He also called for rules governing the management and running of a freehold building to be registered, so that common hold areas are managed in the same way now and in the future.
"If that is not done, it will have to be contract-based. This means that every contract that is written will have to have the constitution and bylaws in it and these will have to be transferred every time the unit is transferred."
The law should also stop developers from continuing to control the management a building's common areas after handover, rather than handing over responsibility to independent organisations, said the AUAE.

Taken from Gulfnews