DIFC Announces Consultation of updated Real Property Law and Regulations

Dubai, UAE, July 05, 2024: Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region, proposes to enact amendments to the Real Property Law, DIFC Law No. 10 of 2018 and the Real Property Regulations 2020.  

Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa and South Asia (MEASA) region, has issued a consultation paper setting out these proposed amendments which include the introduction of a mortgage registration fee and amendments to the Off Plan Sales regime.

Key Amendments

DIFC proposes the introduction of a Mortgage Registration fee of 0.25% of the value of a Mortgage being registered by a purchaser of Real Property. This is in line with current onshore practice and will cover the administration required by RORP to review the documents and process registration.

In addition, DIFC proposes to extend the period of registration of Off Plan Sales from the current 30 day period to 60 days, to better accommodate the timetable for Off Plan Unit purchases, from launch stage to production of a final Off Plan Sales Agreement.  This provides purchasers of Off Plan Units more time to register such transactions and pay the Freehold Transfer Fee.

The remaining proposed amendments are minor in nature and provide further clarifications and enhancements to the real property regime in the DIFC.  These amendments are intended to facilitate the administration and enforcement of the DIFC Real Property Law and Regulations and enhance the regulatory framework within DIFC, in line with current common law and best practice.

The consultation paper and legislative proposal can be accessed by visiting this Link.

The consultation has been posted for a 30-day public consultation period with the deadline for providing comments ending on 02 August 2024.