Strata title is a type of real estate ownership where some parts of building (called lots) are owned by the individuals, while the remaining portions (called common areas) are owned and managed by all individuals jointly through owner's association. This type of ownership usually exists in case of apartment buildings, also known as flats in sub-continent. This is termed as “condominiums” in US and most parts of Canada. Residential units are owned by individuals and common area including stairs, parking, gardens, lifts, roofs, etc are used by all residents jointly.
Call for Strata Law:
The need for strata law arises out of the fact that these types of buildings often have disputes going around over issues like parking, keeping pets that disturb other owners, privacy, alteration or maintenance of common area, etc. Though Strata law cannot stop these disputes altogether, it can surely help in solving them before these quarrels can ruin the environment and peace of residence. Australia was the first one to come up with laws addressing the Strata title issues. Several regions like South Africa, Indonesia, and Singapore then followed with implementing their own set of Strata laws. Such legislations were long anticipated in Dubai where huge sky scrappers and tall buildings containing a big number of apartments and offices are becoming a norm now.
Dubai's Strata Title Law:
The Dubai Strata title law, signed by the ruler of Dubai, requires the proper division of property according to Strata plan. This strata plan, along with a drawing which marks out the boundaries of lots, entitlement of these lots and other required documents should be registered with the registrar. The law covers almost all areas, from major one like common property, easements, buying and selling of such real estate to comparatively smaller ones like membership of corporate body and keeping pets.
Possible consequences:
Like every new law, Dubai strata law has been greeted with a mix response from its stake holders. However, experts believe that as soon as people get familiar to this law, it will be having a positive effect on growth of real estate as well as facilities management market in Dubai. This law provides detailed yet uncomplicated description of rights & obligations for lot owners, making Dubai real estate more appealing for the investors from all over the world. In short, Strata law is a good attempt by Dubai government, which shows their commitment in making Dubai real estate industry a better and hassle free investment option.
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Date Published :
Jun 15 2009