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Dubai homeowners need to gain full control of their assets


As a property investor in Dubai, I would start by asking two questions...

* How many homeowner associations have been registered since 2007?

* Who has the actual financial interest at stake when property is bought to OWN?

To my knowledge, there are hardly any property owners associations (OA) registered due to various legal complications in the implementation of the previous version of the JOP (jointly owned property) law. The result IS that whereas the property was sold, the conveyancing - the transfer of full ownership - was not done for all practical purposes.

The owners are at the mercy of developers and are forced to pay hefty amount(s) on a year-to-year basis towards service fees. Thus, the developers continue to be the de-facto owners and used this lacuna to make money on a yearly basis.

Investors have to work within severe constraints, since the developer controlled the communities through their own owners association management companies.

Source: Gulf News

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