Real Estate Registration in UAE

Regarding the issue of property titles registration, one will have to deal with the Dubai Land Department (DLD). The DLD is engaged in developing the necessary legislation for the expansion of the real property industry in Dubai, establishing and advancing real estate investments.

Types of Real Estate Ownership in the UAE

• freehold – the right to dispose of the property in its entirety at one’s discretion, with no time limit;
• musataha – the right of ownership of all properties on a plot of land for a period not exceeding 50 years;
• usufruct – the right to lease the land or property for a period not more than 99 years;
• lease;
• granted land – land can be granted by the Government of the Emirate to nationals or businesses owned by UAE nationals.

In addition, there is the right of freehold for foreigners in Dubai. In the UAE law there is such a concept as GCC countries, which include the UAE, Saudi Arabia, Oman, Bahrain, Kuwait and Qatar. Citizens of the above countries can own real estate on the right of full private ownership in any area of Dubai. However, a foreign company may only own freehold property by lease or usufruct in certain areas of Dubai.

Laws Applicable to Transfer of Property

• The following federal laws apply:
  – UAE Civil Code;
  – Federal Law No. 18 of 1993 on Commercial Transactions.
• Laws that relate to the transfer of ownership:
  – Land Department Act;
  – Approval of Land Department charges;
  – Regulation on the granting of title to allocated manufactured and business land in the Emirate of Dubai;
  – Provisional Property Registry Regulations in the Emirate of Dubai;
  – Law on Ownership of Real Estate Jointly Owned in the Emirate of Dubai;
  – Real property registration in the Emirate of Dubai.

Dubai’s real property registration laws have the following basic requirements:

• the developer must register all transactions of the unfinished property in the Provisional Registry, which is serviced by the Dubai Land Department;
• the transaction with the finished estate must be recorded in the Property Registry, which is also managed by the Dubai Land Department;
• all rental agreements must be signed with the Property Registry Office;
• all mortgage loans must be recorded with the DLD.

Lack of registration means that the client’s documents are invalid. Thus, an agreement of sale, mortgage or rental has legal force only if it is actually signed.

Note that if the client has made a purchase of real estate, then to transfer the property rights he should register it at the Dubai Land Department.

Prerequisites for registration

• Contract of Sale (SPA);
• Both the client and the seller must be at the DLD.

List of documents

• Passport copy;
• Title deed;
• Original NOC from the builder;
• Sales Contract (Certificate of Title to the property);
• Check.

Procedure

1. both parties must arrive at the DLD;
2. the customer shows his identity document and complete contact information;
3. buyer and seller walk to the registration desk, where the seller receives payment for the sale amount from the buyer in the presence of a DLD employee;
4. the details of the sale are entered into an electronic form that is signed by both parties. This will allow the client to register the sale with the municipality;
5. the parties pay a fee for the service. The customer then receives the certificate of title;
6. if the DLD has any questions about the value of the property, the parties will be directed to the evaluation department.

It should be noted that in the UAE there is no state guarantee of title to real estate in the UAE.

The validity of the information in the real estate registry can be challenged on the basis of detected fraud or forgery. In this case, DLD (Dubai Land Department) can repair mistakes in the real estate record, either at the solicitation of a third side or on its own motion.