ME-ALLIANCE LEGAL UPDATE
ADGM RA Consults on New Strata Regulations to Replace the 2015 Regime
The Registration Authority (RA) of ADGM has issued a Consultation Paper seeking public feedback on a proposal to issue new strata regulations (the Strata Regulations), which will repeal and replace the Strata Title Regulations 2015.
Background
The proposed changes are intended to ensure that the RA’s strata regime remains fit for purpose, aligns with the broader real estate regulatory framework, and supports the continued growth and maturity of the RA’s real estate market.
Key Proposals
• Automatic establishment of an Owners’ Association upon registration of a strata plan, with separate legal personality and the ability to manage and administer common property and shared interests.
• Appointment of an Owners’ Association Manager, being an ADGM-regulated licensed entity, responsible for the management functions of the Owners’ Association.
• Registrar approval of the Association’s annual budgets before any charges can be levied on unit owners.
• A duty to notify the Registrar of any material defects, damage or other matters affecting the strata development, and to prepare and implement a remediation plan.
• Greater clarity on establishing contractual common ownership schemes in ADGM, giving the Registrar sufficient oversight and regulatory authority, including power to review and approve the scheme’s annual budget and proposed service charges.
Who Is Affected
The proposals will be of particular interest to developers, owners of commercial and residential units, real property professionals and buyers, and more generally to all individuals and organisations with a presence in ADGM and their professional advisors.
Practical Takeaway
This is a consultation stage proposal and the Strata Regulations are not yet in force. Stakeholders may submit feedback to the RA. If adopted, developers and owners should expect greater Registrar oversight of budgets, service charges and building defects, and a licensed manager running each Owners’ Association. Developers and property professionals should begin reviewing their strata arrangements and service charge processes against the proposals.
If you have any questions about this topic, please do not hesitate to contact us.
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