Duties and responsibilities of a real estate developer in Dubai

 

The real estate sector in the Emirate of Dubai is receiving great attention, and the real estate market is one of the most important drivers of economic growth therein. This has led to amazing results and positioning the Emirate of Dubai as one of the best cities in the world in terms of real estate investment and attracting the attention of investors, both citizens and foreigners. The Emirate of Dubai has also emerged through its interest in developing the real estate market to become the most beautiful major tourist destination in the world.The real estate sector in the Emirate of Dubai is receiving great attention, and the real estate market is one of the most important drivers of economic growth therein. This has led to amazing results and positioning the Emirate of Dubai as one of the best cities in the world in terms of real estate investment and attracting the attention of investors, both citizens and foreigners. The Emirate of Dubai has also emerged through its interest in developing the real estate market to become the most beautiful major tourist destination in the world.

On the other hand, the stages of real estate development in the Emirate of Dubai are carried out by the so-called real estate developer, starting from obtaining the necessary licenses and approvals until the completion of the development program based on it, and in order to ensure the continuation of the distinguished real estate development of real estate in the Emirate of Dubai, the necessary legislation has been put in place that ensures the completion of these works carried out by the real estate developer in the best way. From this point of view, this article will focus on clarifying what was specified in particular by the Dubai Joint Ownership Law No. 6 of 2019 regarding the obligations and responsibilities of the real estate developer.

First: Defining the real estate developer in the Emirate of Dubai

The law of joint real estate ownership in Dubai includes two types of real estate developer, where the main real estate developer is located, which is everyone who is licensed to engage in real estate development work in the emirate and to dispose of its units to third party. There is also a real estate sub-developer, which is anyone who is licensed to practice real estate development work in the emirate and to dispose of its units to others, and who is granted the right by the main real estate developer to develop part of the main project. The main project is the development of empty lands and the construction of infrastructure and common service facilities in them and dividing them into several lands for the purpose of selling them, and the construction of multi-story buildings or complexes for residential, commercial, industrial or mixed purposes, classified by the Real Estate Regulatory Agency as a main project. This is in addition to the fact that the development is carried out in accordance with what the real estate developer prepares from a set of plans and engineering and planning drawings that are approved by the Department of Lands and Properties in the Emirate of Dubai and the authority concerned with issuing building permits and approving the plans of regions in the emirate. Also, the project plan may include specific sites and areas other than the common facilities or common areas, which are owned by the developer, allocated for private, commercial or investment use. These schemes are considered, according to Article 6 of the Dubai Joint Real Estate Ownership Law, as part of the title deed of the joint property, and the Land Department maintains the original copy of each.

Second: Obligations of the real estate developer in the Emirate of Dubai

The law of joint property ownership in Dubai is one of the most important laws that include all the obligations and responsibilities of the real estate developer in the emirate, so that he is familiar enough with them so that he can work better. The real estate developer in the Emirate of Dubai is obligated under the third paragraph of Article VI of the Joint Real Estate Ownership Law, upon completion of the joint property and obtaining a certificate of completion from the competent authority, to file with the Department the plans and the main community system that includes the terms and conditions governing the development and operation of the main project and common real estate and facilities. The planning and building standards for the complex, as well as the comprehensive statute on the rules and provisions governing the owners committee that are set and approved, as well as the building management system. It is the document that is prepared in accordance with the regulations issued by the Land Department and registered in the joint real estate registry, which shows the procedures for maintaining the common parts, and the percentage of owners’ participation in the costs related thereto including the equipment and services located in any part of another building, within sixty days from the date of issuance of the completion certificate. The Department may extend this period for a period not exceeding thirty days, provided that the developer gives reasonable reasons for the extension acceptable to the Department. In addition, in the event that the developer fails to provide the required documents within the specified period, the department may request any party it deems appropriate to provide and deposit these documents with it, with the developer bearing all expenses and costs that may result from that.

The real estate developer is also obligated to register the unit and the parking spaces allocated to it in the name of the owner in accordance with the instructions issued by the Director General of the Dubai Land Department. In all cases, the unit may not be sold or disposed of in isolation from the car parks designated for it. All of this is in accordance with the second paragraph of Article 10 of the Law of Ownership of Jointly Owned Properties in the Emirate of Dubai.

The main developer, in accordance with Article 19 of the same law, is also responsible for managing and maintaining the common facilities in the main project, provided that this is entrusted to the management company, which is the individual institution or the company approved by the Real Estate Regulatory Agency, specialized in managing joint facilities, joint properties or common areas under a written agreement previously approved by the Real Estate Regulatory Agency.

The developer also sets, in accordance with Article 20 of the Law of Joint Property Ownership in the Emirate of Dubai, the building management system for major projects and hotel projects that it manages, provided that the building management system is approved by the Real Estate Regulatory Agency before concluding any legal action on the units that comprise the joint property in Major projects and hotel projects. This is in addition to the main developer’s setting in accordance with Article 21 of the same law the main complex system in the main project before concluding any legal disposal of lands, buildings or units in the main project, provided that the main complex system is approved by the Real Estate Regulatory Agency. No amendment shall be made to the basic system of the complex that has any impact on the rights of buyers without obtaining the approval of the Real Estate Regulatory Agency.

As for the sub-developer, he may not, under Article 28 of the Law of Ownership of Jointly Owned Properties in the Emirate of Dubai, refuse to pay the service and usage fees approved by the Agency. The developer shall not also, in accordance with Article 29 of the same law, take any action against the owner that prevents him from receiving or using the unit or the common parts or common facilities, with the intention of obligating him to pay the service fee or the use allowance. The developer shall also be, in accordance with Article Thirty, until the management company is appointed by the Real Estate Regulatory Agency, to manage the joint property and to keep the service allowance paid by the owners in the account for the allowance.

On the other hand, the main real estate developer in Dubai shall open a special account for the usage allowance for each major project with one of the banks licensed to operate in the emirate and approved by the Real Estate Regulatory Agency, and this is a commitment under Article 31 of the Joint Property Ownership Law.

It shall also be noted that if the developer or the hotel project management company proves to be incompetent or unable to manage the joint property or the common parts of major projects and hotel projects in a manner that ensures their sustainability and suitability for service, the Executive Director of the Real Estate Regulatory Agency may appoint a specialized management company to undertake Management and operation of the common property or its common parts in accordance with Article 37 of the Dubai Joint Property Ownership Law. The same provision shall also be applied if it is proven that the main developer is incompetent or unable to manage the common facilities in the main project in a manner that ensures their sustainability and suitability for service.

Third: Responsibilities of the real estate developer in the Emirate of Dubai

It shall be borne in mind that the responsibility of the developer in accordance with Article 40 of the Dubai Joint Property Ownership Law continues to repair or correct any defects in the structural parts of the joint property for a period of ten years, starting as of the date of obtaining the completion certificate for the real estate project that he developed; taking into account the provisions of the contract.

The developer's responsibility to repair or replace the defective fixtures in the joint property continues for a period of one year from the date of handing over the unit to the owner. These installations include mechanical and electrical works, sanitary installations, sewage and the like. In case the owner refuses to receive his unit for any reason, that period shall be calculated from the date of obtaining the completion certificate for the real estate project developed by the developer, and any agreement inconsistent with that shall be null and void.