The Dubai International Financial Centre (DIFC) has amended its Application Law, also known as the Application of Civil and Commercial Laws in DIFC. The changes include updates to the DIFC Real Property Law and Regulations, introducing a 0.25% mortgage registration fee for buyers registering mortgages.
Additionally, the registration period for off-plan sales has been extended from 30 to 60 days, allowing more time for buyers to register purchases and pay the freehold transfer fee. This adjustment aims to align better with the timeline for off-plan transactions, from launch to final sales agreement.
These amendments took effect on November 21, 2024, after being passed on November 14.
Application Law Updates
A new Article 8A has been added to clarify that DIFC law and court rulings interpreting it must be referenced when determining legal matters. Since DIFC law incorporates common law principles, this article allows DIFC courts to consult the common law of England and Wales, other jurisdictions, and comparative jurisprudence to develop or refine rules and equity principles. However, DIFC Courts cannot make broad legislative or policy decisions.
Article 8A also permits reference to international model laws and related commentary for interpreting DIFC statutes based on such models, ensuring alignment with global legal standards. The amendments aim to solidify English common law and advancements in other common law systems as integral to the DIFC’s legal framework.