Dubai’s International Financial Court (DIFC) has made changes to its Application Law, which is formally called the Application of Civil and Commercial Laws in DIFC. These updates aim to enhance the legal and property framework in the financial hub.
Changes to Real Property Law
DIFC announced amendments to its Real Property Law and Real Property Regulations, including introducing a new mortgage registration fee of 0.25% of the mortgage value. This fee applies to buyers registering a mortgage on a property.
Additionally, the time allowed for registering off-plan property sales has been extended from 30 days to 60 days. This adjustment gives buyers more flexibility, especially during the timeline from launch to finalizing the sales agreement. The extra time also helps buyers complete transactions and pay the freehold transfer fee without unnecessary rush.
Updates to Application Law
A key change to the Application Law is the introduction of Article 8A. This article prioritizes DIFC Law, emphasizing that:
- DIFC statute and court judgments interpreting the statute take precedence.
- DIFC Law is supplemented by common law, including principles of equity.
- DIFC Courts may refer to common law precedents from England, Wales, and other jurisdictions when developing or modifying rules.
These updates clarify that DIFC Courts, like other top common law courts, can use global legal precedents for interpretation. However, they are not authorized to create broad legislative policies. The interpretation of DIFC statutes can also consider principles from related laws in well-established common law systems and international jurisprudence, especially if the statute is based on international models.
Purpose of the Amendments
The amendments ensure that English Common Law and practices from other advanced common law jurisdictions remain integral to DIFC’s legal system. This approach reinforces DIFC’s status as a key financial and legal hub.
The changes to these laws were enacted on November 14 and officially took effect on November 21, 2024.
