What Is The Procedure In Transferring A Property In The UAE?

property law

|

June 16, 2022

|

810 views


| Your comment matters, please click here to rate article!



UAE continues to be one of the most attractive jurisdictions for foreign direct investment. Real estate is a crucial sector towards garnering more investment into UAE. In fact, high value investment in UAE real estate, subject to fulfilling the specified conditions, may also help a non-resident buyer in obtaining a long-term UAE visa.

The Federal Law No 5 of 1985 (Civil Code) is the overarching law which provides for the types of property and deals with the rights deriving from ownership of land. That said, each Emirate has issued its own laws on the acquisition and transfer of land and these should be referred to for specific advice.

Types of Real Estate

Following are the types of real estate recognized in the UAE.

  1. Freehold
  2. It is the unlimited ownership right of the property on a permanent basis. Specified areas in the UAE are considered as freehold land.

  3. Usufruct
  4. This is a right to use and exploit the property owned by another person for a limited period of time. This right is subject to the property not undergoing any change.

  5. Musataha
  6. This is a right to undertake construction on land for a period not exceeding 50 years. The new construction made is owned by the holder of the Musataha right and he has the right to dispose the new construction along with the right of Musataha.

Who can Buy Property in the UAE?

UAE citizens, judicial persons, expats and even non- UAE residents can buy property in the UAE, subject to meeting specified conditions.

Transfer of Property

According to the Civil Code, a property may not be transferred between parties unless it is registered in accordance with law. The Dubai Law 7 of 2006, which deals with property registration in the Emirate of Dubai clarifies that all actions related to establishment, transfer, change or removal of a property right will not have any effect unless it is registered in the property register. The title deeds that are issued by the authorities is treated as absolute evidence in proving property rights under the Dubai real estate law.

For property to be transferred and registered in the UAE, broadly the following steps have to be completed.

Due Diligence:

A due diligence on the property is conducted to confirm that that seller has the complete right to sell the concerned property. Typically, property due diligence includes reviewing the title documents, physically inspecting the property and examining the property register, if possible.

Term Sheet & Contract of Sale:

Buyer and seller usually enter into a term sheet or a memorandum of understanding setting out the fundamental terms of the deal, as agreed between the parties. The term sheet is usually valid for a limited period, until the signing of the sale contract and is usually subject to completion of a satisfactory due diligence.

The sale contract should have details of the property, the buyer and the seller, purchase price, terms of payment, governing law, dispute resolution and a termination clause. If the authorities have specified a standard sales contract, then that template should be used with an annexure setting out the additional terms.

The Civil Code sets out some general provisions that should be mentioned in a sale contract. For instance, Article 491 states that the contract should state that the buyer had knowledge of the sale and cannot annul the contract for lack of knowledge, unless it is proved that the seller had deceived the buyer.

The procedure of transfer and registration of the property may differ for each Emirate. Generally, the procedure involves submission of the documents with the authorities, payment of the purchase price and receipt of payment, verification of the transaction and issuance of the title deed to the buyer.


Related Links


Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.


Comments

No comments found.

Leave a Comment

Your email address will not be published. Required fields are marked *

Want to know more?
Then talk to us.


Client Testimonials

I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.

Raphael Lauria
Manager, FME General Trading

Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.

Zhuo Liu
Client

...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...

H.H. Sheikh Saeed Bin
Mohammed Hashir Al Maktoum

I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.

Luis Pozueco
Client

Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.

Bassam Yamout
Director, JM Metal Trading LCC

He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.

Philippe Delbecq
Client

Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.

British Client

Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.

Asma Mattar
Manager, Italian Style

Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.

Dr. Massimo Hakim
Chairman, Italian Style

I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.

Manish Gupta
Marketing Manager, Express Digital System

Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.

James Horsley
British Client

Select your Language:

        

Main Menu