DIFC: Case Management System Upgrade

The DIFC Courts will be upgrading its digital infrastructure with the implementation of a new, improved and streamlined Case Management System (CMS).

The new system implementation will take full effect as of 30 September 2024.

As a result, all DIFC Courts eServices will be suspended as of 4:00 pm on 26 September 2024, until 8:00 am on 30 September 2024.

Services affected during this system transition will include but are not limited to all filings (including claim forms and electronic filing cover sheets), payments of fees, Wills Registry, and bundling services.

Any deadlines that fall within the above stipulated period will be rescheduled to fall on 30 September2024.

Following the launch of the new system, all registered DIFC Courts users will be required to update their respective profiles via a link, which will be shared upon the launch of the upgraded system.

For any urgent applications to be made within the above stipulated period, please contact the Registrar on +971 50 213 8049.

For any further information, please contact the Registry via email: registry@difccourts.ae.

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DIFC: Proposed Changes to Real Property Law and Regulations

The DIFC has announced a consultation on proposed changes to the DIFC Real Property Law (DIFC Law No. 10/2018) and the DIFC Real Property Regulations 2020.

The consultation is of interest to those purchasing or intending to purchase Off Plan Lots within the DIFC, those purchasing a property with a Mortgage, or entering into Leases of property within the DIFC.

Key proposed changes include increasing the period to Register an Off Plan Sale in the Off Plan Register from 30 days to 60 days. The could also be a clarification of the timeline of when an Off Plan Sales Agreement can be terminated by a Prospective Owner should a Developer fail to provide a Disclosure Statement after the parties have entered into an Off Plan Sales Agreement.

Article 156(4) of DIFC Law No. 10/2018 currently requires a Developer to lodge for Registration each Off Plan Sale in the Off Plan Register no later than 30 days after the entering into of an Off Plan Sales Agreement with the Prospective Owner. Any type of reservation form or similar (which is often used at the launch of Off Plan Sales to secure interest in a Lot) where a sum of AED 5,000 or more is received by a Developer is caught within the definition of an Off Plan Sales Agreement. Therefore, the current 30-day period for Registration runs from the effective date of such a form or agreement. However, in practice it may take longer than 30 days for a Prospective Owner to sign the final Sale and Purchase Agreement, once received from the Developer which is why there has been a proposal to extend the time period for registration of an Off Plan Sale to 60 days to cater for this.

Article 160(1) of DIFC Law No. 10/2018 requires Developers to provides Prospective Owners with a Disclosure Statement before the parties enter into an Off Plan Sales Agreement. This generally outlines details of the Off Plan Development including community amenities, service charge details and finishes of Lots. Article 160(6) of DIFC Law No. 10/2018 permits a Prospective Owner to terminate an Off Plan Sales Agreement at any time prior to the date of handover of the Lot being purchased, if a Developer has failed to provide a Disclosure Statement. .However, the DIFCA believes the period within which this right of termination can be actioned is currently too long, and could potentially lead to Prospective Owners terminating the agreement at the last minute for reasons which were unrelated to the receipt of a Disclosure Statement. The DIFCA still feels it is important for these Disclosure Statements, to be provided but also believe it is necessary to strike the correct balance between the rights of Prospective Owners and Developers and the need to avoid unequitable results created by an arbitrary termination of Off Plan Sales Agreements.

If a Developer does provide a Prospective Owner with a Disclosure Statement after the parties have entered into an Off Plan Sales Agreement, a Prospective Owner will have a period of 60 days to review this from the date of receipt. During this period of 60 days and for a further 20 days after that period, Prospective Owners can elect to terminate an Off Plan Sales Agreement if they decide that the Disclosure Statement does not accurately reflect the Off Plan Development. Article 160(6) of DIFC Law No. 10/2018 has been clarified to make it clear that such termination is only effective if exercised “within 20 days of the expiry of the 60-day review period.

Another proposed change is to introducing a Mortgage Registration Fee in the DIFC based on the Mortgage amount, in line with the fee that applies onshore in Dubai and charging a standard lodgement fee of $100 for all Mortgage Instruments which are being Registered in the DIFC (and $273 for Islamic Mortgages) . At present under onshore Dubai laws, a fee of 0.25% of the mortgage amount is levied by the Dubai Land Department to register a mortgage .

The DIFCA has proposed to introduce a Mortgage Registration Fee to the DIFC Real Property Regulations to match the onshore 0.25% of the mortgage amount. It is also proposed that the lodgement fee for both Islamic and non-Islamic Mortgage Instruments would be charged to a flat rate of $100. The DIFCA is not proposing to add a period within which a Mortgage must be registered as it will be in the interest of the Mortgagee to Register the Mortgage if they wish to protect its interest on the Register.

In addition, an increase in the period to Register a Lease with the RORP has also been from 20 days to 30 days has also been proposed (see Article 49(1) and 49(3) of DIFC Law No. 10/2018 in order to ensure that Lessors have sufficient time to Register the Lease and pay the Lease Registration fee. Article 49(1) of DIFC Law No. 10/2018 requires a Lessor to lodge for Registration a Lease registrable under Article 48(3) of DIFC Law No. 10/2018, within 20 days of the date on which the Lease was entered into by the Lessor and the Lessee. However, feedback has been received from Lessors and Lessees that 20 days is often too short a timeline to Register a Lease especially in cases where the Registered Owners that are overseas which is why this extension has been proposed.

The removal of the requirement for parties to Instruments to have an address for service of notices in the UAE, and there to be a statement a person’s address as shown in any Instrument in which that person first lodges for Registration is treated as the person’s address for service by the RORP has been proposals. Email would also be added as a valid mode of service of notices under Article 169 of DIFC Law No. 10/2018.

Article 169(3) of DIFC Law No. 10/2018 sets out the modes of service which are permissible under DIFC Law No. 10/2018. However, the DIFCA now believes it is not necessary for parties to Instruments to provide a UAE address for service, given the number of foreign purchasers there area in the DIFC which is why it has been proposed to remove the requirement for parties to Instruments to have an address for service of notices in the UAE. It has also been proposed that Article 169(2) of DIFC Law No. 10/2018 should be deleted and Article 127(1) of DIFC Law No. 10/2018 should be expanded to include that an address for service on the first Instrument Registered by a person is the valid address for service of notices until an application is made to amend the Register. This would ensure that parties to Instruments were aware that the insertion of a different address in a second or subsequent Instrument did not constitute a change in the valid address for service Registered with the RORP.

There has also been a proposed alteration to the definition of Prescribed fee DIFC Law No. 10/2018. DIFCA believes this definition was always supposed to mean the lodging fee for an Instrument with the RORP and that the current definition has created some anomalies in DIFC Law No. 10/2018. Therefore, they propose to amend the definition to mean only the lodging fee for an Instrument.

The consultation ends on 2 August 2024.

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Dubai: RTA Cracks Down On Violators Of Right-Of-Way Rules

Khaleej Times, 11 June 2024: The Roads and Transport Authority (RTA) in Dubai has conducted an extensive inspection campaign on 698 developer sites and free zones across the Emirate.

The campaign’s main objective was to monitor the occupation of the right-of-way, ensure compliance with regulations, and guarantee the safety of road users and compliance to standards in development and free zones.

The campaign, which began at the start of the year, included inspections of all free zones and 57 development areas managed by 24 developers in Dubai.

Through this intensive inspection campaign, RTA aims to maintain Dubai’s civilised and aesthetic appearance and ensure the sustainability of the operational condition of roads, facilities, and pavements in development and free zones.

The campaign’s main focus was to ensure pedestrians’ smooth movement and safety using the right-of-way and to prevent obstacles impacting motorists in these areas.

The Director of Right-Of-Way at the Traffic and Roads Agency of RTA has stated that RTA carries out inspection visits and campaigns as part of an annual plan and in response to public complaints and feedback.

These campaigns are required by Dubai Law No. 4/2021, which governs road regulations in Dubai.

The inspection teams focused on monitoring abandoned barriers and construction waste at developers’ sites where applicable.

They also checked the conformity of existing project fences to approved specifications, the readiness of pedestrian walkways and crossings, and auditing billboards within developers’ areas.

Additionally, they addressed issues such as random parking of scooters within the right-of-way, illegal use of the right-of-way for refuelling vehicles, greenery that affects the safety of road users, placing groundwater equipment on the right-of-way, and detecting damage on roads and facilities caused by rainwater.

The RTA has also urged development entities and free zones to follow the rules and conditions for using the right-of-way and comply with Dubai’s standards and specifications to ensure the safety of road users and smooth traffic flow in the Emirate.

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Dubai: Launches Programme to Facilitate Judgment Enforcement Procedures

Emaratalyoum, 30 May 2024: The Dubai Courts have launched the ‘Execution+’ programme. This programme is a big step forward in enforcing court rulings through digital technology. The programme is part of a strategic plan to develop the system for enforcing judgments and civil orders.

Dubai Courts have affirmed that through ‘Execution+’, it assists customers in procedures related to enforcing judgments by providing a flexible, integrated and clear system that benefits all parties.

The Director of Dubai Courts has said that this programme comes within a comprehensive digital initiative aimed at elevating the system for enforcing judicial rulings in the emirate.

Dubai has also affirmed that the courts conducted a detailed study to identify the challenges facing enforcement operations and then adopted ‘Execution+’, a set of developmental initiatives to assist customers in procedures related to enforcing judgments in a smooth and transparent manner.

Getting a judgment is not enough you also need to enforce it to actually obtain your rights.

There were often delays in the enforcement process.

This is what led them to start working on a set of initiatives under this ‘Execution+’ project.

All departments in Dubai cooperated with the Dubai Courts on these initiatives.

This cooperation from various departments across the emirate was vital for the project.

The second phase will involve cooperating with federal authorities in other emirates across the UAE.

This project represents a major improvement in enforcing judgments. That’s because enforcing judgments requires coordinating with many different authorities.

However, by using technology and cooperating with all government, semi-government, and other departments, this can be achieved more effectively.

The programme seeks to offer innovative judicial services to all customer categories, underpinned by quality, efficiency and effectiveness, as well as enhancing the efficiency of the enforcement process.

The strategic plan for developing the system to enforce judgments and civil orders includes several initiatives and projects.

These aim to achieve speedy justice, ensuring everyone entitled receives their rights promptly.

The plan also seeks to enhance litigants’ confidence in the judicial system, contributing to social and economic stability.

Additionally, it focuses on improving the efficiency and effectiveness of enforcement procedures.

This saves litigants from the hassle of waiting and following up.

The plan supports providing a digitally integrated work environment for smooth operations across various organisational units, positively impacting service quality.

Ultimately, the strategic plan aims to save time and effort expended in the enforcement process.

‘Execution+’ aims to digitally transform the enforcement of judgments through five main pillars.

It enhances efficiency and digitisation to streamline procedures and optimise resource utilization.

The program expedites enforcement procedures while ensuring flexibility.

It promotes transparency and information exchange between relevant authorities and officials involved.

‘Execution+’ enables collaboration with partner organizations. Ultimately, it ensures legal compliance throughout the enforcement process.

This programme falls within Dubai Courts’ efforts to elevate the level of services and achieve government directions aimed at making litigants happy and providing the best services to society in accordance with the vision of the wise leadership.

This focuses on entrenching the guarantee of rights and freedoms, and the application of the rule of law and fair judiciary.

‘Execution+’ also reflects the courts’ commitment to achieving the highest levels of transparency and justice in enforcing judicial rulings, and affirms its leading role in enhancing the rule of law and providing distinguished judicial services to all members of society.

For the full story, click here.

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Dubai: DWTC Launches Work from Home Commercial Licence

The Dubai World Trade Centre has launched home-based business licence packages in Expo Village, its residential community at Expo City Dubai.

The new packages are designed to meet the needs of the growing entrepreneurial community in Dubai, serving new business owners, startups, entrepreneurs and SMEs.

The packages allow them to obtain a commercial licence from Dubai World Trade Centre’s free zone, along with work permits, based on a residential lease without the costs of a dedicated office rental.

The work-from-home packages have been developed to align with the growing global trend towards flexible working systems.

They meet the needs of entrepreneurs seeking a more diverse approach to starting businesses and establishing new companies.

There are currently four Expo Village packages, all of which include membership at the Expo Village Co-Working Hub.

For full story, click here.

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Dubai: Complaints System for Military Departments Approved

Emaratalyoum, 20 May 2024: The Dubai Government Human Resources Department has issued Dubai Decision 1/2024, which approves the grievances and complaints system for the military departments in Dubai.

The decision aims to achieve several goals.

First, it governs the procedures of the military department committees covered by the law.

Second, it organises the process of handling grievances and complaints before the relevant committee in terms of procedural and substantive rules.

Third, it links this process to the one followed by the Central Committee, in accordance with Dubai Decree No. 27/2018.

This includes specifically organising the timelines for submitting a grievance or complaint.

The decision aims to raise the level of performance of the committees’ work and align their indicators with government indicators and those of the Central Committee.

The objectives of the decision also include ensuring proper implementation of the provisions of current legislation and compliance with set limits.

It also aims to address any complaints from affiliates by providing an optimal environment within the department and reducing the need to resort to the Central Committee.

For full story, click here.

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Dubai: Remote Litigation System Implemented

Emaratalyoum, 10 May 2024: The Public Prosecution in Dubai has partnered with E&Enterprise to implement a digital system for remote investigation and litigation.

The system will be overseen by the Public Prosecution through a central operations room, and integrated with key partners including the Dubai Courts, Dubai Police, and the General Directorate of Residency and Foreigners Affairs.

Under the agreement, the parties aim to implement a centralised system for remote investigation and litigation.

This platform will offer stakeholders a unified judicial solution which can be accessed remotely for dispute resolution. purposes

Some key features will include central storage and archiving, scheduling of remote interviews, and reserving rooms at various locations such as police stations, courts, and investigation rooms by the Public Prosecution.

For full story, click here.

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