Dubai: Amended laws introduce new mortgage fee, 60-day registration
Among the various changes the Dubai International Financial Centre (DIFC) made to its legal system was the Application Law, sometimes referred to as the Application of Civil and Commercial Laws in DIFC. These developments seek to improve for financial center stakeholders accessibility, efficiency, and clarity.
Amendments to the DIFC Real Property Law and Real home Regulations also bring significant changes for property transactions including mortgage registration costs and longer timescales for off-plan home sales.
Amendments to the Real Property Law
Among the adjustments, DIFC has included a 0.25% of the mortgage value new mortgage registration charge. Targeting to simplify the registration process and align with worldwide trends, this fee applies to buyers filing real property mortgages inside the financial center.
DIFC has also extended the registration period for off-plan sales to help to meet the complexity of off-plan property transactions. Originally only 30 days, the period is now 60 days giving buyers extra time to finish registrations and pay the freehold transfer cost. This shift is expected to simplify difficulties experienced by purchasers between launch and the completion of off-plan sales agreements.
These real property law amendments were enacted on November 14, 2024, and officially came into effect on November 21, 2024.
The amendments to the DIFC Application Law introduce a new provision, Article 8A, which further defines the hierarchy and interpretation of laws within DIFC’s jurisdiction. According to this article, DIFC law is to be interpreted primarily through its statutes and judgments issued by the DIFC Courts, However it also acknowledges the supplementary role of common law and principles of equity.
Under Article 8A, DIFC Courts may refer to common law principles from England and Wales and other established common law jurisdictions to develop or modify rules applicable within DIFC. This reinforces DIFC’s legal framework as rooted in a global common law system while maintaining its unique characteristics.
Additionally offering direction on how to interpret DIFC rules derived from international model laws is the revised Article 8A. A statute based on such a model may be interpreted consistently by the courts depending on foreign jurisprudence, interpretative aids, and commentary. Laws based on international standards, for instance, will be understood in relation to choices taken by other countries that have embraced the same standards. This strategy helps DIFC to remain a globally linked financial center with a legislative framework compliant with international standards.
Ensuring a Robust Common Law System
The amendments underline how closely DIFC's legal system still relies on English Common Law and other recognized common law countries. DIFC Courts are not empowered with more general legislative or policy-making authority, even while they may take comparative jurisprudence from a variety of countries to hone or modify legal concepts, This guarantees that DIFC keeps legal certainty and respect of statutory frameworks while functioning as a strong common law system.
Objectives of the Amendments
The amendments to Real Property Law and the Application Law are meant to increase DIFC's appeal and functionality as a top worldwide financial centre, These improvements improve accessibility and clarity for companies and people running under the DIFC jurisdiction by guaranteeing consideration of both local and international legal standards.
Furthermore, the changes to the real estate rules seek to streamline the procedures for investors and buyers, so facilitating less time-bound property transactions, This is especially important since Dubai keeps extending its real estate offers to draw international business.
The latest changes to DIFC's Application Law and Real Property Law show the financial center's commitment to keep its leading hub for legal and financial services, DIFC is positioned to become even more a preferred destination for foreign companies and investors by matching its legal structure with global best practices and providing more freedom in property transactions.