Stringent Laws Regarding Timeshare Property Selling and Management Introduced in Dubai
The Dubai Tourism Body has been asked to establish a framework that shall outline the marketing, management, and sale of all properties being sold under the “timeshare” program. All residential units that fall under this scheme will be listed as well so that the Emirates can enjoy the complete benefits of timeshare.
Dubai’s tourism agency shall work with the Dubai International Finance Sector and Land Department. These bodies shall coordinate regarding all matters relevant to timeshare programs. This shall include activities of brokers, developers, timeshare contract registrations, and rights.
The latest regulation was issued by His Highness under Law number (14) 2020.
Investors can enjoy more affordable vacation options thanks to timeshare ownership. Dubai hopes to form new opportunities for investment in the real estate segment. All Entities who are currently undertaking business activities related to timeshare have 6 months to obey the new regulations.
The timeshare program lets investors gain property rights, allowing them to use a property as they see fit for the next 12 months. For the remaining period, the owners/investors can enjoy returns from income that may be generated by renting property to other Entities.
While the timeshare concept is quite popular in a number of tourism focused destinations across the world, strict regulations are needed to regulate these programs.
The latest law regarding timeshare outlines a clear legal context for initiating a timeshare business activity. This will help encourage growth in the real estate and tourism sector while also stimulating vacation ownership businesses. Tourists and visitors will also be able to enjoy more residential alternatives.
In Dubai, timeshare permits have a validity of 12 months. Upon expiry, these permits must be renewed. The Dubai Tourism body has the power to issue permits with a validity of up to 4 years as well. The terms & conditions for transferring or cancelling a timeshare contract can be found in the new law, along with details regarding timeshare facility rights and beneficiaries.
Checks and Compliance
The Dubai Tourism body shall be responsible for inspecting timeshare facilities and ensuring that they are complying with the regulations. The body shall also receive and investigate complaints regarding timeshare activities being conducted without approval and a valid permit.
The latest regulation requires the formation of a database that will contain information on all facilities being used for timeshare.