DIFC Announces Amendments to Key Laws and Regulations

The Dubai International Financial Centre (DIFC) has introduced significant amendments to its legal framework, including updates to the Application Law, Real Property Law, and Real Property Regulations.

Key Updates:
1. New Mortgage Registration Fee
A new fee of 0.25% of the mortgage amount has been introduced for buyers registering mortgages in the DIFC.

2. Extended Registration Period for Off-Plan Properties
The registration period for off-plan sales has been extended from 30 days to 60 days. This change provides buyers additional time to register their purchases and pay the freehold transfer fee, accommodating the timeline for finalizing off-plan sales agreements.

These amendments were enacted on November 14, 2024, and officially came into effect on November 21, 2024.

Application Law Amendments
A notable change to the Application Law is the addition of Article 8A, which outlines the hierarchy of legal sources for interpreting DIFC law:

DIFC statutes and court rulings must be prioritized.
The common law—including equity principles—is supplementary to DIFC statutes.
The DIFC Courts may refer to English and other common law jurisdictions for comparative guidance.
This approach ensures that the DIFC legal framework maintains alignment with international best practices and developments in established common law jurisdictions.

Implications of Article 8A:

Jurisprudence from well-established common law jurisdictions can inform the interpretation of DIFC statutes.
International model laws and related commentaries may guide interpretation when relevant.
The DIFC Courts retain authority to refine individual common law principles but are not empowered to enact broad legislative changes.
By integrating advancements from English Common Law and other jurisdictions, these amendments strengthen the DIFC’s position as a leading common law-based legal system in the region.

Source: Propertynews