If you are searching to buy a property, you might hear the name of jointly owned property. Almost all professionals in the real estate field know what it means. But if you are a newcomer and want to learn more about this statement. If you are an expert who needs more details about this topic, continue reading this text.
What does Jointly owned property mean?
Jointly Owned Property is a term to define properties subdivided into units being saleable with common shared areas. While a Unit would contain the title area of an apartment, there are common areas like corridors or foyer of a building or any swimming pool and recreational facilities defined as freehold is Jointly Owned Property.
If you choose to invest in Jointly Owned Property, you become a member of an Owners Association. So there are certain responsibilities which you have to do as an owner. For example, you have to pay service charges for the management, administration, maintenance of the Jointly Owned Property; and concede with building administration rules and restrictions.
What are the legal rules for a jointly owned property?
Jointly Owned Property was the first subject as the Law No. (27) in 2007 (“JOP Law ”). Then they added “Directions” to the JOP Law in 2010 as a guide for developers and Investors to know their rights and obligations about Jointly Owned Property. The Real Estate Regulatory Agency known as “RERA” is the principal governmental body in charge of enforcing the JOP Law and the Directions issued pursuant. In addition, the Dubai Land Department is responsible for approving Unit plans and common area plans.
What does RERA do exactly?
Here, you can read about the exact responsibilities of The Real Estate Regulatory Agency.
- They help developers to establish a fair and equitable management structure, using a Jointly Owned Property Declaration for their developments in this way.
- RERA encourages developers to uncover all appropriate information about their developments in “Disclosure Statements”, about the developments being sold “of plan”.
- This Real Estate Regulatory Agency reviews budgets and service charge details and supports them.
- They give License firms to offer community management services to Owners Associations.
- Totally, they help developers, owners, and owner’s associa
Why are the JOP law and directions important for investors?
Mostly the JOP Law and Directions are important as they provide a framework. They ensure that investors know the nature of their investment (using the Disclosure Statement). Also, they ensure that a good industry practice manages their Jointly Owned Property.
So, if you are interested to buy an apartment or villa as an investor, you have to enquire about the following:
- Is there any available Disclosure Statement?
- Is there a Jointly Owned Property Declaration or other related papers for your case?
- What are the appropriate service charges?
- Who is the owner’s association administrator, and are they certified by RERA?
While you might not have access to all of them for a particular project, the provision of the same will help the investor to know more about the nature of the project, rights, and obligations. Also, if the developer indicates these documents, you will understand that he tries his best to work collaboratively with RERA and the Dubai Land Department.
As an investor, remember the transfer of title to any property will require a “no objection certificate” from the director of the owner’s association or the developer. It ensures that the transferring owner concedes with its responsibilities under the JOP Law and its service charge payments are up to date.
If you do not know what a jointly owned property is or need to know the details of buying a jointly owned property, read the above text. You can contact the online team of dxboffplan to ask any other questions. Also, we can help you to find the best jointly owned property based on your interest.