The International Financial Centre in Dubai has promulgated crucial changes to its legal procedure, particularly the alterations made in regard to its mortgage registration process and the period of registration of off-plan property sales. These new regulations for new mortgage fee were issued on November 14, 2024, but came into force on November 21, 2024.
One new requirement involves a new mortgage registration charge. Purchase of real property will be liable to a 0.25% fee on the value of the mortgage being registered. This pertains to persons registering mortgages covering properties within the DIFC.
The DIFC has also extended the cut-off period that must elapse before such off-plan property sales can be registered for.
The 30-day period of registration from off-plan sales has been extended to 60 days. This has given the extra time a buyer needs in covering the entire registration process from the launch of off-plan units to the finalization of sales agreements. More over, the extended time allows more time for paying the freehold transfer fee, giving greater flexibility to those purchasing the off-plan properties.
These changes also include updates on the DIFC’s Application Law and Real Property Regulations. The new amendments will provide that DIFC Law will be mainly determined by the DIFC statutes and court judgments, and with regard to common law principles, which also include those from England and Wales and other common law jurisdictions.
The updates would facilitate property transactions in the DIFC and strengthen the legal structure, making English Common Law as well as international standards of law relevant to the financial hub of Dubai.
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