Dubai International Financial Centre (DIFC) – the leading global financial centre in the Middle East, Africa, and South Asia (MEASA) region – has issued a consultation paper proposing to amend the Real Property Law, DIFC Law No. 10 of 2018.
The proposed amendments will facilitate the administration and enforcement of the DIFC Real Property Law and aims to enhance the regulatory framework within DIFC in line with current common law practice, according to the state-run news agency, Wam.
The proposed amendments are in Part 9 of the Real Property Law, relating to default remedies for mortgagees.
The key aspects of the changes to the Real Property Law include the removal of the mortgagee’s right of foreclosure in its entirety.
The proposed changes also clarify the mortgagee’s rights and obligations with regards to the exercise of its statutory power of sale in the event of a default by a mortgagor.
The changes also evaluate the removal of the reference to the wording, “under the principles of English common law and equity” in Article 29 (b) of the Real Property Law.
The consultation paper and legislative proposal can be accessed by visiting the Consultation Papers page on the DIFC website. The deadline for providing comments is 29 March 2022.
The proposed amendments reflect the centre’s commitment to maintaining a transparent and robust legal and regulatory framework aligned with global best practices.
The current purpose of the Real Property Law, DIFC Law No. 10 of 2018, is to establish a system of registration for Real Property within the jurisdiction of the DIFC, and in particular, “to guarantee title to Real Property, to facilitate dealings with Real Property including the Registration of Real Property Interests and Real Property Rights; and to define the powers and functions of the Registrar in relation to Real Property,” the law states.