Dubai Strata Title Law. INFORMATION SESSIONS (June 25-26, 2007)
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1 Dubai Strata Title Law INFORMATION SESSIONS (June 25-26, 2007)
2 Dubai Strata Title Law Session 1 WELCOME AND INTRODUCTION
3 Dubai Strata Title Law Session 2 ASSESSMENT OF REQUIREMENTS Gary Bugden
4 The obvious - Dubai is experiencing development on scales of size and complexity that are unique in the world today. The way these development projects are titled, subdivided and managed will be critical to Their smooth operation in the future The integrity of the Dubai real estate market
5 The challenge - To achieve laws that are: Regional specific (not transplanted) Sensitive to economic, cultural, political and social conditions Based on best practice Able to cope with the range of projects in the Emirate
6 The reality - These laws: Will not be perfect Will need to evolve as local conditions change Will need regular review Will require innovative application
7 Projects to be accommodated Stand-alone high rise apartment buildings Large and complex mixed use buildings Master planned communities (comprising multiple uses and multiple housing types) Master developer arrangements Staged developments
8 Dubai Strata Title Law Session 3 PROPOSED DEVELOPMENT AND MANAGEMENT MECHANISMS Gary Bugden
9 Development and management mechanisms Subdivision of a building into units and common areas (i.e. conventional strata title) Subdivision of a building into volumetric lots (i.e. a non-strata title subdivision) Subdivision of part of a building into units and common areas (i.e. subdivision of a volumetric lot) Subdivision of land into units (plots) and common areas (i.e. conventional community or group title) Owners Associations
10 Before proceeding with more mechanisms Let s consider the ones already identified!
11 Stand-alone apartment building
12 Volumetric lot subdivision MIXED-USE BUILDING VOLUMETRIC SUBDIVISION PLAN HOTEL OFFICE TOWER SHOPS Umbrella Management Agreement (BMS)
13 Part-building strata subdivision LAND AND BUILDING SUBDIVISION PLAN UMBRELLA MANAGEMENT AGREEMENT (BMS) COMMERCIAL OFFICES COMPONENT RETAIL COMPONENT RESIDENTIAL COMPONENT Offices Owner Retail Owner OWNERS ASSOCIATION SITE PLAN MASTER COMMUNITY DECLARATION DIRECTOR or BOARD COMMON AREAS UNITS
14 DEVELOPMENT LAND SITE PLAN HOTEL PLOT SHOPPING VILLAGE PLOT RESIDENTIAL DEVELOPMENT PLOT GOLF COURSE PLOT MARINA FACILITIES PLOT Hotel Owner Shops Owner Golf Owner Marina Owner SITE PLAN Master Community Declaration Master Community Declaration FIRST LAYER SECOND LAYER Resort style land subdivision FREE-STANDING HOUSES DEVELOPMENT PLOT VILLA-HOMES DEVELOPMENT PLOT SITE PLAN SITE PLAN UNITS COMMON AREAS UNITS COMMON AREAS Declaration Master Community Declaration Master Community Declaration THIRD LAYER
15 Owners Associations DEVELOPMENT LAND OWNERS ASSOCIATION HOTEL OWNER SHOPPING VILLAGE OWNER OWNERS ASSOCIATION GOLF COURSE OWNER MARINA FACILITIES OWNER OWNERS ASSOCIATION (Houses) OWNERS ASSOCIATION (Villas) UNIT OWNERS UNIT OWNERS
16 Development and management mechanisms (Continued) 2 and 3 tier Association structures Umbrella management agreements (BMS) that run with the land (as an option to replace an Association) Master community declaration (to allow some structuring flexibility) Staged development (using single or multiple Associations) Long term management agreements (subject to disclosure)
17 Dubai Strata Title Law Session 4 OVERVIEW OF PROPOSED STRATA LAW Gary Bugden
18 Structure LAW Owners Association Regulations Development Regulations Survey Regulations Master Community Declaration Regulations Orders/ Instructions/ Designated Forms Master Community Declaration (Prepared by Developer)
19 The Law Registration of Jointly Owned Property Ownership of Jointly Owned Properties The concept of a Master Community Declaration Rights of support and shelter The concept of Community Rules Disposal of Units Formation of Owners Association
20 The Law (Continued) Membership of Owners Association Funding of Owners Association Common Areas Key obligations of Developers Jointly Owned Property insurance requirements Closing provisions
21 Dubai Strata Title Law INFORMATION SESSIONS COFFEE BREAK
22 Dubai Strata Title Law Session 5 OVERVIEW OF PROPOSED REGULATIONS Gary Bugden
23 Owners Association Regulations Role of the Association Membership of the Association Representation of Unit Owners Management, including: Powers and authorities Record keeping Detail on insurance requirements Annual service charges Settlement of disputes
24 Owners Association Regulations (Continued) Appointment of a manager Meeting procedures Finances Member s rights and obligations (including relating to Community Rules)
25 Development Regulations Disclosure of information to purchasers Form and content of Building Management Statements More detail on warranties Prohibition of certain types of arrangements Provision of utility services Other consumer protection matters
26 Master Community Declaration Regulations Description of the development Approach to development (i.e. staging, relationships to other parts of the project and other structuring arrangements) Architectural and Landscape Code (particularly where sub-development is being undertaken) Utility Services arrangements Any special Common Area arrangements Project specific easements and covenants Identification of Unit numbering Allocation of shares in Common Areas Community Rules
27 Survey Regulations Plan formats Plan and other numbering Description of plot(s) Delineation of unit boundaries Delineation of common property Delineation of easements Requirements for volumetric plots Use of sketch plans Staged subdivisions Correcting errors Registration process Amendment
28 Dubai Strata Title Law Session 6 GUIDE TO PROJECT STRUCTURING Gary Bugden
29
30
31
32
33
34
35 Volumetric Subdivision (With Owners Association as a component)
36 Dubai Strata Title Law Session 7 DEVELOPERS RESPONSE
37 Dubai Strata Title Law Session 8 LAWYERS RESPONSE
38 Dubai Strata Title Law Session 9 FUTURE PROCESS
39 Dubai Strata Title Law Session 10 SUMMING UP Gary Bugden
40 Dubai Strata Title Law INFORMATION SESSIONS (June 25-26, 2007)
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