property law

|

December 15, 2021

|

2386 views


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



Expatriates make up for a total of ninety per cent of the population of the United Arab Emirates, with the higher percentage of people living in Dubai and Abu Dhabi. This, in turn, results in ex-pats wanting to invest in the real estate market in the UAE, whether as an investment opportunity or for the option of renting. For investors, the real estate market of the UAE poses a great charm and delivers with great returns on investments.

In this article, we will discuss the legalities concerning the UAE real estate market and the major laws and regulations related to real estate property.

The UAE, real estate law, is quite complex and includes a multitude of legislations. For the emirate of Dubai, the main real estate laws , includes amongst others ‘Law No. 7 of 2006 on Real Estate Registration in the Emirate of Dubai’ which regulates the real estate registration and ownership rights in the Emirate of Dubai; ‘Regulation No. 3 of 2006 on the Designation of Areas for Non-UAE nationals may Own Real Estate in the Emirate of Dubai’; ‘Law No. 8 of 2007 on Escrow Accounts for Real Estate Developments in the Emirate of Dubai’. New investors who are not aware of the real estate legislations should seek proper legal advice from an expert property lawyer in Dubai in order to understand their rights and obligations as determined under the real estate law Dubai. They should seek legal review of the sale contract and also know more about the processes concerning ‘escrow accounts’ and ‘oqood system’.

Different types of property rights:

The UAE allows for the following different types of ownership in real estate for ex-pats. This includes:

Freehold: Freehold title of the property can be considered as the most superior form of real property right that would be most attractive to ex-pats , as it allows its owner to enjoy and occupy the land or property in perpetuity. Each emirate designates certain specific regions as freehold properties and thereby allowing for foreign direct investment. Pursuant to Law No. 7 of 2006 concerning real property registration in the Emirate of Dubai’, the UAE and GCC nationals are allowed to own freehold property interests in any part of Dubai. Foreign nationals, on the other hand, are permitted to own freehold property in “designated areas” approved by the ruler of Dubai from time to time. Article 3 of ‘Regulation No. 3 of 2006 Determining Areas for Ownership by Non-Nationals of Real Property in the Emirate of Dubai’ indicates the land plots designated as freehold properties in the emirate of Dubai.

Usufruct: A usufruct contract allows for the owner to enjoy the use of the property and its facilities without being able to change it. Thus, under a usufruct permitting, a tenant is allowed to use the leased property provided such property remains in its original condition subject to fair wear and tear.

Musataha: A Musataha contracts entitles the owner to enjoy the use, construction or alteration of the property within the specified period. It thus essentially confers on the owner the right to build a building or to plant on the land of another (unlike in a usufruct). Thus, musataha is very similar to usufruct, but grants an additional development right to the musataha holder. The maximum term of a musataha is 50 years. Unless otherwise agreed, either party has the right to terminate the musataha by providing advance notice of two years. A musataha holder can also assign or transfer his musataha rights along with any improvements to a third party.

Lease Holding: There are both short term leasing and long-term leasing options allowed in the UAE. For long term leasing, the maximum term period would be 99 years, and the lease arrangement should be registered in the Real Property Register. In the case of short-term leasing, the maximum term limit is that of ten years.

For expats, usually purchasing a property provides a more beneficial alternative to renting, especially when long term stay is on the cards. A valid registration of the ownership rights is the first step that one should complete, in securing your real estate investments. Real estate contracts are often extremely technical ad detailed that quite often, people enter into one without completing proper due diligence. This practice should be avoided, especially when it comes to the sale and purchase agreements.


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