What is a Full Disclosure Statement?

The Direction for General Regulation Concerning Jointly Owned Properties (the General Direction) puts in place detailed obligations for developers to disclose a number of matters to purchasers. The General Direction was issued in May 2010 pursuant to Dubai Law No. 27/2007 Concerning Ownership of Jointly Owned Properties in the Emirate of Dubai (the JOP Law).

Before a purchaser signs a sale and purchase agreement for a proposed or an under construction unit, or a completed unit where title has not yet been issued, the developer must give the purchaser a written statement setting out a number of pieces of information regarding the development. This new procedure aims to help purchasers make an informed decision regarding their purchase of a unit.

Although a limited disclosure regime has been in place since the General Direction was issued, the “full form” disclosure obligation commences from 13 January 2011.