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The Dubai land department was established on January 24, 1960 / 26 Rajab 1379H.on that blessed day, His Highness Sheikh Rashid bin Saeed Al Maktoum, the late Ruler of Dubai, signed a decree, stating: “We have decided to establish a committee to oversee affairs related to land and private properties in the emirates, in order to register these lands and properties in a systematic and effective manner and to safeguard the rights of our people.”
In day’s bygone, the sale of land was based on trust, and sealed with a handshake. Now, these traditional methods have been replaced with contracts and paperwork. All matters of legalization of sale and purchase of lands have been entrusted to the LD. this has served to regulated the registration process and protect property from misappropriation. It has also facilitated transactions between landowners and buyers, and their heirs, when applicable.

• Throughout the decades, the LD gained the trust of UAE nationals, by offering
• Distinguished services and sound advice.
• The process of registering real estate data is entirely computerized.
• The LD places a high premium on customer care

The Dubai land department was established on January 24, 1960 / 26 Rajab 1379H.on that blessed day, His Highness Sheikh Rashid bin Saeed Al Maktoum, the late Ruler of Dubai, signed a decree, stating: “We have decided to establish a committee to oversee affairs related to land and private properties in the emirates, in order to register these lands and properties in a systematic and effective manner and to safeguard the rights of our people.”
In day’s bygone, the sale of land was based on trust, and sealed with a handshake. Now, these traditional methods have been replaced with contracts and paperwork. All matters of legalization of sale and purchase of lands have been entrusted to the LD. this has served to regulated the registration process and protect property from misappropriation. It has also facilitated transactions between landowners and buyers, and their heirs, when applicable.

• Throughout the decades, the LD gained the trust of UAE nationals, by offering
• Distinguished services and sound advice.
• The process of registering real estate data is entirely computerized.
• The LD places a high premium on customer care.

  • The new property law in Dubai that everyone has been waiting for was issued on 14/03/06.

  • The law states that expatriates (non-national) are now among those who can own Properties in Dubai.

  • Law No.7 of 2006 stipulates that freehold is limited to UAE and GCC citizens and companies wholly owned by them, as well as public shareholding companies.

  • The law also stipulates that upon approval of Dubai’s ruler, non-UAE nationals.

  • May be given the right to own properties in some parts of Dubai. The so-called Freehold areas of Dubai that would be available for expatriates to own with ruler’s Approval. So expatriates have given the right to acquire a freehold property, or a  99-years lease property, in areas designated by the ruler in regulation No.3 of 2006.

  • The law also states that Dubai land and property department register will record any conditions, pledges, restrictions, or other commitments that may apply to the title.

  • Article 24(2) of the new law contemplates the registration of a mortgage against title for a property. More detailed provisions about the grant of the mortgage with respect to real properties are contained in the civil code.

  • The land department under article 22 has the responsibilities of issuing document relating to right over land on the basis of the actual records of the land register.

  • The law stipulates the setting up of a property registration office at the Dubai land and property department which will be responsible for documenting property right and their amendments.

  • On the issue of inheritance, article No. 2 states that the certificate of the rights of heirs of a deceased must be registered with the ‘Dubai land and property department’ property register if the state includes property. On the other hand, the law also states that no actions of such heirs with respect to such rights shall be effective unless registered in this register.

  • The new real estate property law does not distinguish between residential and commercial property.

  • The law also stipulates that any amendment to the property unit, whether by dividing or merging units must be registered with the property register.

  • The department issues ownership certificates regarding property rights, which are considered ultimate evidence to prove property rights. These certificates must include any terms, conditions, undertakings or any other commitments.

  • The department can correct clerical or financial errors in the property register upon a request by applicants or on its own, with informing concerned parties.

  • There will also be initial registration fee payable to the Dubai land and property department upon registration of the title in the name of the owner. once the property is registered in the name of the owner, the transfer fee payable upon sale of the property by the owner to another owner will be payable to the Dubai land and property department and no longer to the developers.

Article (5)

“The originals of documents and judicial decisions in pursuance of which registration is made shall be kept in the department……….”

Article (25)

“The provisions of federal civil transactions law No.5 of 1985 and its amendments are still valid in the cases not stipulated by this law”.

Article (26)

  1. Any agreement or transaction made contrary to the provisions of this law shall be null and void any agreement or disposal made with the intention to contravene the provisions of this law.

 

Article 3

This law shall apply to land situated in the emirate.

Article (6)

The department shall have exclusive jurisdiction to register the rights over land and the leaseholds mentioned in article 4 of this law. For this purpose, the department may do any of the following:

(1)          determine the areas to be surveyed or re-surveyed and certify the maps drawn therefore;

(2)          prescribe rules in relation to surveying and inspection, as well as in relation to issuance of maps relating to land unites;

(3)          prepare model forms of contract relating to real estate transactions;

(4)          prescribe rules concerning organizing, archiving and destruction of documents;

(5)          prescribe rules in relation to using computers in storing and recording data;

(6)          lay down rules in relation to voluntary sales of land by public auction and supervision of such sales;

(7)          prescribe rules in relation to evaluating land;

(8)          lay down rules in relation to regulating and keeping a register of real estate brokers;

(9)          determine the fees payable for services rendered by the department; and

(10)        Establish branches of the department as the director may deem appropriate.

 

Article (10)

Any undertaking to transfer a right over land shall be limited to an obligation to pay compensation if the obligor is in breach of his undertaking, whether the undertaking contains a provision to pay compensation or not.

 

Article (12)

The department has the authority to look into applications submitted by owners of unregistered lands seeking to settle their legal status.

 

Article (14)

In co-ordination with the relevant authorities, the department shall update its records of land units and of what is located thereon such as buildings, plants or otherwise.

 

2.1:         About RERA

  • The setting up of Dubai real estate regulatory agency (RERA) was decreed by His Highness Sheikh Mohammad Bin Rashid Al-Maktoum, vice president and prime
  • Minister of UAE and ruler of Dubai, on July 31, 2007 as a service agency under the Dubai land department to regulate Dubai’s real estate sector. RERA is a government entity, with its own financial and administrative independence and vested with full legal authority to regulate the real estate sector.
  • RERA’s main objective is to establish the foundation for a globally attractive real estate sector that satisfies and guarantees all stakeholders right and expectations.
  • RERA has four main area of operation, which include policy and strategy development; Regulation & Registration; Research & Studies and Programmed & Projects.

2.2:         Introduction to services provided by RERA

RERA’s main responsibilities lie within a framework of ten specific areas includes:

  1. Licensing of all real estate activities.
  2. Managing developers’ trust account.
  3. Licensing and organizing real estate agents.

The regulation of real estate agents includes registering and qualifying such agents, identifying themed for service providers in the sector, monitoring of the activities of real estate agents and the introduction of key performance indicators.

  1. Regulating and authenticating rental agreements.
  2. Regulating and supervising owners associations.
  3. Regulation of real estate related media advertising.
  4. Regulating and licensing real estate related exhibitions.

RERA’s activities are so extensive that they cover even real estate advertisements issued by various players in the sector. Similarly, the agency licenses and regulates real estate exhibitions and undertakes studies on various aspects of the sector. In this respect, the agency takes such measures as necessary to ensure credibility of such advertisements, apart from promoting transparency and cooperation with the local media.

8.            Publishing of research and studies.

9.            Enhancing national participation in the real estate sector and increasing real estate   awareness.

For that purpose, RERA launches campaigns to increase awareness about various aspects of the real estate sector and encourage national participation in the sector.

2.3:         Introduction to Law No.8, 2007

  • Law No.8, 2007 concerning real estate development trust accounts issued by Sheikh Mohammad bin Rashid al Maktoum, the ruler of Dubai.
  • The provisions of this law shall apply to developers who sell off-plan units in real estate development projects in the emirate and, in consideration, receive payments from buyers or financiers.
  • A trust account shall be opened in the name of the project (project may contain one or more building) and shall be used only for the purposes of developing the real estate project. The amounts deposited in the said account may not be attached in favor of creditors of the developer. A developer carrying out several projects should open an independent trust account for each such project.
  • Developers looking to sell property ‘off plan’ must first obtain a permit from the Dubai land department to authorize marketing activity in connection with the sales. This process should eliminate the threat of bogus projects and qualify developers and categorize developers in a more appropriate manner. Then opening a ‘Guarantee Account’ with an ‘Account Trustee’ which will hold all monies received from purchasers or their financiers, all monies advanced by a bank or financial institution financing the project on behalf of the developer and the developer’s own capital contribution.
  • After obtaining a written permit from the department, a developer may advertise in local or foreign media or participate in local or foreign exhibitions to promote selling off-plan units in the emirate. The director shall issue the resolutions as required to regulate the requirements for advertising in the media or participating in exhibitions, therefore, the agent are prohibited to market any off-plan properties unless they check and keep copy of the following:

2.3.1:     The developer Register

A special to be named “The developers Register” shall be prepared at the department. The names and particulars of developers licensed to carry out real estate development activities in the emirates shall be recorded in the said register. No developer may carry out the said activities unless it is registered in the said register and licensed by the competent authorities pursuant to regulations issued in this regard.

The department shall prepare another register that includes names of financial institutions and banks who act as trustees. This trustee should be proficient in managing trust accounts. The agreement between the department and the trustee shall set out the duties of the trustee and the terms under which the trust account is managed and copy of which should be kept in the developer register.

2.3.2:     Registration of SPA and Escrow Agreement

Escrow agreement: is a written agreement between the developer and the trustee. Under the said agreement, the amounts paid by buyers of off-plan units or received from the financiers shall be deposited in a special account to be opened in the name of the real estate project. The said agreement shall set out the terms for managing the account, the right s and obligations of the contracting parties and other terms and conditions. A copy of the contract shall be lodged with the department in the developer register.

SPA: sale and purchase agreement between the master developer and developer / developer and purchaser…., the department may add a note regarding the purchase agreement between the master developer and the sub-developer in the record of the plot owned by the master developer and the developer register. Further, the buyer of an off-plan unit may apply to the department to add a note regarding the purchase agreement entered into with the sub-developer in the record of the plot on which the project is to be constructed.

2.3.3:     Pre-selling Process

  1. Signing agency / commission agreement with the seller.
  2. Advertisement?
  • What is the info to use or not to use in your ad?
  • What are things to check with developer/seller before placing their properties in your list?
  1. The offer/reservation form singed by the seller and the buyer and the agent.
  2. All installments Cheque including deposits must be issued to the Escrow account of the project for off-plan properties.
  3. Real estate company prohibited taking any payment from the buyer Into their banking
  4. account of their company.
  5. The deposit cheque for completed property shall be issued to the

Banking account of the seller and kept with the agent up to the date of transferring the property

2.3.4:     Penalties for Violators

Without prejudice to any penalties provided for in any other law, a penalty of incarceration and payment of a fine not less than 10,000.00 Dirham, or either one of them, shall imposed on anyone who:

  1. Carries on a property development business in the emirate without License.
  2. Submits false documents or makes misstatements to concerned authorities
  3. In order to obtain a license for carrying on a property development business.
  4. Knowingly offers to sell units in bogus property development.
  5. Uses payments delivered to him for the purposes of construction of property developments, and misappropriates such payments.
  6. Any auditor who deliberately prepares a false report about the results of an audit he conducts on a developer’s financial position, or intentionally conceals significant facts from his report.
  7. Any consultant who knowingly approves false documents about a property development.
  8. Any developer who deals with a broker who is not registered in the broker’s register at the department pursuant to by-law No.85 of 2006 regarding the real estate broker’s register in the emirate of Dubai.

2.3.5:     Cancellation of Developer Registry

A developer shall be cancelled from the register in any of the following events:

  1. If he declares bankruptcy.
  2. If he does not commence construction within six months of the date he

Was granted approval to sell off plan without an acceptable excuse.

  1. If his license is cancelled by the licensing authorities. (Economic Dept.)
  2. If he violates any of numbers (2) or (3) or (4) or (5) of article 16 of law
  1. No. 8, 2007.
  1. If he is in violation of any of the laws and/or by laws regulating the
  1. The real estate development activity. (Decision taking by the director of
  2. Dubai land Department).

 

 

3.1: The Brokers Registration

  • A person may not carry on the brokerage activity in the emirate unless he is licensed by the competent authorities and registered in the registry.
  • A record to register the brokers, who are licensed to carry on the brokerage activity in the emirate, shall be established and every change or amendment made on this information shall be recorded therein.
  • The brokers shall be from two classes: class (A): The people of expertises who are registered in the list, unlicensed by the competent authorities and are exempted from the registration conditions. Class (B): The people who carry on the brokerage activity under a license issued by the competent authorities.

3.2: Conditions of Registration in the Brokers Register

The people from class (B) who wish to carry on the brokerage activity in the emirate shall submit an application on the form to be registered in the registry. The application shall include the following documents:

  • A valid trade license issued by the competent authorities
  • A membership certificate in Dubai Chamber of commerce & industry
  • A copy of the license applicant’s passport with regard to the sole proprietorships or companies
  • An identical copy of the ownership certificate of the brokerage shop or its lease contract
  • A certificate of good conduct for the establishment’s owner and the senior manager or senior managers of the company
  • None of the company’s directors or the partners authorized to run the company shall be from those who have previously declared bankruptcy or were convicted with a crime violating honor or trust
  • Obtaining certificates in courses specialized in the real estate field from educational institutions accredited by the department.
  • Passing the brokerage profession test prepared by the department
  • The department shall examine the application. Within seven days from submitting the application, the department shall request the applicant in writing to complete the documents or information it deems necessary.

  • The department shall take all the procedures to verify that the registration application, updating or canceling the requirements of the by-law provisions and decisions issued in accordance therewith, are fulfilled.

  • The department shall present the registration application to the committee within 7 business days from the date of submitting the application or completing the document and information required by the department, as the case may be.

  • The committee shall have the right to approve the registration or reject the same. The issued decision in this regard shall be informed to the applicant. The decision to reject the registration shall be justified.

  • If the committee rejects an application of registration, updating or cancellation, the concerned party shall file a grievance against the decision of rejection with the director, within 7 days of being informed of the decision. The director’s decision in this regard shall be final.

  • The department shall issue a broker card bearing his name and address, in addition to his registration No…. the broker shall enclose his name with his registration No. in the registry in all the correspondence and reports issued by him.

3.3: License Renewal

Every broker registered in the registry shall come to the department for annual renewal of his registration in the registry.

The renewal application shall be submitted to the department on the form assigned for this, at least (30) days prior to the expiry date of the registration certificate.

The department shall renew the broker’s registration in the registry after verifying the availability of the renewal conditions.

3.4: Broker’s Obligations

  •  All registered Brokers must comply with the profession ethics according to the code of ethical conduct prepared by the committee.
  • The broker must prove in his special register all the transactions made by him and keep the relevant documents and papers. He shall also submit an identical copy of the same to any of the contracting parties who asks for it. In case of selling by map or form, he must keep the map or form until the transaction is completed.
  • The broker shall submit all the information related to the brokerage activity which is required by the department.

  • The broker must inform his client with all the details of negotiations he is conducting and any information that is considered necessary to enable him to take the decision to enter into an agreement with the other contracting party.

  • The broker must also inform the other contracting party with all the substantial issues that are related to the subject of agreement and which are necessary in order be fully aware of it. 

  • The Broker shall not mediate to enter a transaction in violation of the laws and regulation applicable in the emirate of Dubai.

  • The Broker shall, even if he is only authorized by one party of the transaction, give them a faithful offer he shall be responsible before them for any deception or mistake he makes.

  • The broker may not establish himself as a second party in the contract in which he mediated to sign unless the contracting party allows him to do so and in this case the broker shall not be entitled to a fee.

  • The broker shall be a guardian on any amounts, securities or things given to him by any of the parties to keep or to deliver to one of the parties. Trust rules shall apply to the broker with regard to these matters.

  • The broker shall be responsible for any losses or damages inflicted on any of the contracting parties as a result of his acts through deception, fraud or non-observance of the principles to be followed as per the provisions of this statement or in accordance with the requirements of the code of ethical conduct.

  • The broker’s right in remuneration or claim to be reimbursed for the expenses he spent, shall drop if he works in favor of the other contracting party violating by this his obligations towards the party he is representing, or if he accepts from the other party a promise to obtain a benefit when such promise is prohibited by the rules of good faith and code of ethical conduct.

3.5: Broker’s remuneration

  • The broker shall not be entitled to a fee for his brokerage unless this brokerage caused a contract to be signed between the two parties. This contract shall be considered as entered when the parties agree on all the substantial issues therein.
  • If the contract was dependent on a pending condition, the broker shall not be entitled to the fee unless this condition is met unless signing the contract is impracticable for a reason related to the customer, then the broker shall be entitled to a compensation for the effort he spent.
  • If the brokerage contract is revoked, the broker may claim his fees or keep the same if he received it, unless deception or grave mistake was proved on his part.
  •  If the broker’s instructions or negotiation did not lead to signing a contract between the two parties, the broker shall not be entitled to claim any compensations expenses or costs he incurred unless there was a prior condition or this was done in the special practice.
  •  If more than one broker participated in the mediation or negotiation for one party in order to reach an agreement and this led to the completion of the agreement, all of them will be entitled to the remuneration and the remuneration shall be divided between them as per the conditions of the contract entered between them
  • If a party contracted with many brokers independently and with regard to one subject in order to mediate for him and negotiate on his behalf in an agreement and one of them succeeded in completing the transaction, he alone shall be entitled to the full compensation.
  • The broker shall be entitled to compensation only from the party of transaction who authorizes him to mediate to sign the transaction. If the authorization was issued by both parties, each one shall be severally responsible before the broker for paying the fee due from him, even if they agreed that one of them shall pay the full fee to the broker.

3.6: Settlement of Dispute

  • The department shall have a council composed of three persons, in addition to the legal consultant of the department. They shall be appointed by a decision issued by the director. The council shall have competency to settle disputes related to mediation through arbitration.
  • The council shall not consider disputes of real estate brokerage, unless the brokerage contract contains the arbitration condition, or the adversaries agree subsequently to refer their disputes to the council for arbitration. The agreement on arbitration shall only be established in writing and it shall specify the subject of the dispute in the arbitration document.
  • The council shall commence its duties according to simplified procedures that seek to resolve the disputes and establish justice between adversaries, by following the general principles of the law. The council’s decision shall be in accordance with the rules of the law, unless the council was authorized to reconcile. In this case the council shall not comply with these rules except with the rules related to the public order.
  • The council shall have a secretariat to be in charge of receiving the applications, opening files, writing proceedings and correspondence, servicing the adversaries, maintaining the files and generally to do all the administrative tasks assisting the council. The secretariat shall be appointed by a decision from the director.

  • The arbitration application shall be submitted to the committee by the party requesting arbitration according to the form prepared for this purpose. Supporting documents and sufficient copies according to the number of the disputing parties shall be enclosed with the application. The chairman shall order that the application is registered after the determined fee is paid. The secretariat shall announce the adversary (the respondent) in the application. The respondent shall respond in writing to the application statement and the incidents and requests therein. He shall lodge this response and any supporting documents thereof with the secretariat within a week from announcing him. The council shall decide in the dispute within a maximum period of (30 days) from the date of referring the case. This period may not be extended unless there are reasons justifying this.

3.7: Disciplinary Penalties and the expiration of the Brokerage capacity.

Without prejudice to any penalty set by the applicable laws, the committee shall have the right to impose any of the following measures on the broker who violates any of the provisions of this statement:

  1. Warning Notice
  2. Suspension from work for a period not exceeding 6 months
  3. Putting the Broker’s name on the black list
  4. The Broker’s registration shall be cancelled if he breaches the code of Ethical conduct or if he commits a substantial violation of the applicable laws, regulations and instructions in the emirate.

The cancellation shall be based on a decision issued by the director according to a recommendation from the committee, stating the reasons for cancellation.

  • The broker may file a grievance against the decision of cancellation with the chairman within 15 days of being informed with it. The decision of the chairman shall be final.
  • The brokerage capacity shall drop from the broker and his registration with the department shall be cancelled in the following cases:
  1. The broker leaves the brokerage business permanently, and informing the
  2. Department about that.
  3. The broker leaves the brokerage business for a period exceeding twelve
  4. Consecutive months without a legitimate excuse acceptable to the committee.
  5. He loses any of the conditions which should be met as per the provisions of
  6. This by- law, any regulations or instructions issued there – under.
  7. if it becomes clear that his registration was based on false information that he
  8. Submitted to the department.

     The chairman issues a decision canceling the registration as per the provisions of Article (40) of this statement.

     The department shall notify the competent authorities with the decision issued to discontinue the broker’s activity or cancel       his registration.

3.8: Final Provisions BY-Law No.85/2006

  • The acting brokers shall, when this statement is issued, accord their status with its provisions within 3 months from the day it was issued. The chairman may extend this period for a period not exceeding another 3 months, if there were reasons justifying this.
  • The committee shall be entitled, through consultation with the competent authorities, to classify the brokers according to their area of specialization and to determine their number according to the need.
  • The department shall receive the arbitration fees which shall be determined by a decision issued by the chairman.
  • The provisions of this by-law shall be valid from the date it is signed. Issued on 30/ 5/ 2006.

 

 

4.1:         Introduction to Law No. 26 of 2007

Issued by Sheikh Mohammad bin Rashid Al –Maktoum, Ruler of Dubai to regulate relationship between landlords and tenants in the emirate of Dubai.

The law shall be applicable to leased properties in the emirate including open and agricultural lands, excluding hotels and free accommodation provided by natural or judicial persons to their employees.

4.2:         Introduction to Lease Agreement / Tenancy Contract

  • - The tenancy contract should be written
  • - Signed by tenant and landlord
  • - Describing property in details
  • - Include the purpose of tenancy
  • - Name of landlord and tenant
  • - No. and type of land, name of the area
  • - Period of the tenancy
  • - Rent value
  • - Method of payment
  • - Registered with the agency (RERA)

4.4:         Rent value Law No. 26 of 2007

  •  Landlord and tenant should not increase the rent value or amend any of tenancy contract conditions till the elapse of two years from date of inception of original tenancy relationship.
  • Tenant shall pay rent value on agreed dates. However, if such agreement is not there or cannot be proved, then rent value must be paid in annual four equal installments to be paid in advance and the tenant should keep the receipt of each payment.

4.5:         Market value Law No. 26 of 2007

  • Subject to article (9) of law No. 26, 2007 and for tenancy contract renewal purposes, landlord and tenant may reconsider rent value and if no agreement is reached and necessity for extension of tenancy period is proved, then the committee shall decide extension of tenancy period and determine rent value of similar properties in the same area.
  • The committee shall decide rent value of similar properties in view of rules and standards proposed by the agency on the basis of property condition and rent value of similar property in the same area.
  • Shall either party opts not to renew contract or not to amend any of its conditions, then he must notify the same to the other party not less than 90 days prior to expiry date, unless both parties agreed otherwise.

4.6:         Landlord Obligations

  • Landlord shall be committed to handover the premises in good condition that enables tenant to obtain the benefit subject of the contract.
  • Landlord shall, during validity of contract, be liable for handling maintenance of property and shall rectify any defects or faults that affect tenant’s targeted benefit from the premises, unless the two parties agree otherwise.
  • Landlord shall not make any change in the premises, its utilities or ancillaries affecting the intended benefit, and landlord shall be liable for such changes caused by him, or by any person authorized by him, and for any damages, faults or shortages caused to the premises for reasons not relating to the tenant.
  • Landlord must provide tenant with all approvals required by competent authorities in the emirate if he wishes to execute decoration works , or other works, what require such approvals, provided that such works shall not affect the construction of the premises and provided that tenant has necessary documents evidencing applying for such approvals.
  • Landlord is prohibited from disconnecting services to the premises or prevent tenant from benefiting from the premises. However, in the event of occurrence of such incidents, the tenant shall refer to police station in the same area to prove the case or to stop such prevention, and also to file a case before the committee, enclosing supporting reports, for compensation of any damages.

4.7:         Obligations of the Tenant

  • Tenant must pay rent value on due dates and preserve premises as his own property. He also shall not make any changes, renovations or maintenance works without landlord’s permission, after obtaining necessary approvals from relative authorities. This shall not violate tenant’s obligation to execute agreed upon maintenance or that which is ordinarily done by tenants.
  • Landlord may obtain maintenance deposit amount from tenants to guarantee maintenance of premises at the end of tenancy contract, provided that landlord shall undertake to refund this deposit, or any remaining amount, upon expiry of contract.

  • Tenant shall be obliged, upon expiry of tenancy , to return the premises to landlord in the same condition as handed over to him at the time of contracting except, shortages resulting from normal use or for reasons beyond his control. However, in case of any dispute, the matter shall be referred to the committee for decision.

  • Unless tenancy contract otherwise provides, the tenant shall pay all fees and taxes due for government authorities for benefiting from the premises, in addition to any other fees or taxes due for subleasing.

  • The tenant shall not, upon evection of premises, remove any fixed improvements unless agreed otherwise by both parties.

  • Unless otherwise agreed in the tenancy contract, the tenant shall not assign benefit or sublease premises without obtaining landlord’s approval.

4.8:         Eviction

Landlord may demand evection of tenant prior to expiry of tenancy period in the following cases:

  1. if tenant fails to pay rent value, or part thereof, within thirty (30) days of landlord’s notification for payment.
  2.  if tenant sublease premises, or part thereof, without landlord’s written approval and in such case evection shall be applicable to subtenant, and his right to refer to tenant for compensation shall be reserved.
  3.  if tenant uses, or allows others to use, premises for illegal or immoral activities.
  4. if tenant causes changes that endanger safety of the premises in a way that it cannot be restored to its original condition or if he causes damages to the premises purposely or due to his gross negligence to take proper precautions or if he allows others to cause such damages.
  5.  if tenant uses leases premises for purposes other than those mentioned in the tenancy contract or if he uses premises in a way that violates planning, building and land using regulations.
  6.  if the premise is endangered to collapse, provided that landlord must prove such condition by a technical report attested by Dubai municipality.
  7. if tenant fails to observe legal obligations or tenancy contract conditions within (30) days from date of notification by landlord to abide by such obligations or conditions.

4.9:         General Rules law No. 26 of 2007

  •  If landlord or tenant dies, tenancy relationship shall devolve to their heirs, unless tenant’s heirs decide to terminate that relationship, provided that termination shall become effective after thirty (30) days from notifying landlord of such decision or on expiry of tenancy contract, whichever occurs first.
  • The transfer of title to a new landlord shall not affect tenant’s right to continue occupation of the premises in accordance with tenancy contract signed with the previous owner, provided that tenancy contract has fixed date.
  • Filling an evection case shall not relieve tenant from paying rent value for the whole period of the case and till the issue of judgment and execution thereof.
  • If the committee orders termination of tenancy contract and the premises was occupied by subtenant, in accordance with a contract signed with the tenant and approved by landlord, then the subtenant shall have the right to continue occupation of the premises with the same conditions.

 

5.1: Concepts of subdivisions

The definition of “Jointly owned property” provides that this law will cover two concepts of subdivision, namely

(1) subdivision within buildings where common areas will be created; and

(2) subdivision within conventional methods of horizontal subdivision of land where common areas will be created.

5.2: Master Developer’s Ownerships of common Areas

  • That master developers will have a choice as to whether to retain ownership of all common areas within a master community; (II) retain ownership of some of the common areas within a master community; or (III) not retain any of the common areas within a master community.
  • Where a master developer chooses to retain ownership of some of the common areas with in a master community, the balance of the common areas will become jointly owned property (as defined in the strata law). The jointly owned property will be owned by the property owners with the master community in undivided shares and the owners association to which these owners are members will be tasked with the administration and management of the jointly owned property.

5.3: Ownership of common area by the master developer

  • Where a master developer chooses not to retain any of the common areas with in a master community, then all the common areas will become jointly owned property.
  • We anticipate that the implementing regulations will deal with fore mentioned issues in further detail.

5.4: Building Management Statements

  • Where there is a mixed use building consisting of, say, a commercial lot and a hotel lot, the strata law envisages that a document known as a ‘building Management Statement’ must be prepared to document the maintenance and cost sharing arrangements between the lot owners in relation to the building’s common facilities.
  • If such building Management statement is required, then the building management statement must be registered at the Dubai lands department.

5.5: Units within a jointly owned property Development

  •    A unit within a strata development and the unit’s undivided interest in the common areas will be capable of being sold or mortgaged in favor of a bank.
  •     A unit owner’s interest in the common areas cannot be separately disposed of from the unit itself.
  •      A unit owner may lease his unit on condition that the unit owner and tenant remain obliged to comply with the association constitution and the master community declaration towards other unit owners, occupiers and the owners’ association.

5.6: Disposal of units of jointly owned property

  • •             A unit co- owned by two or more persons may not be divided among the co- owners unless the Dubai lands department’s approval is obtained.
  • •             The strata law creates a right of first refusal to purchase another co- owner’s share in a unit offered for sale to a non owner. The right of first refusal does not apply to a sale between spouses, lineal ascendants, lineal descendants, brothers or sisters, or their descendants.
  • •             The right of first refusal lapses after one month after notification through the notary public of the name and address of the third party purchaser and conditions of sale in the event the co- owners fail to agree to the conditions of sale.
  • •             If it is proved that the sale to the purchaser was completed on better terms than the terms in the notification sent to co- owners, they may have the right to claim compensation for the damages suffered in the Dubai courts.
  • •             The strata law also specifies the time periods and procedures to be followed in the event the co- owners agree to purchase the property.
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  • 5.7: Strata Development
  • If a developer plans to develop its strata development in stages, the developer must disclose such arrangement in the master community declaration. The original documents for the site plan, the master community declaration and the owners’ association constitution must be lodged with the Dubai lands department and such documents will be registered with the title deed of the jointly owned property.
  • A developer is liable for building structural defects up to a ten (10) year period from the completion of the building and liable for defective appliances up to a one (1) year period from the completion of the building.
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  • 5.8: Introduction to owners associations
  • As regards owners associations, the strata law provides that: as owners association will be formed upon the registration at the Dubai land department of the first owner (other than the developer) of a unit in the strata development.
  • The owners association is a not-for profit legal entity and has a separate legal existence from its members. Accordingly, the owners association has the right to sue and be sued in its own capacity.
  • Unpaid service charges can be recovered by the owners association as a debt in court.
  • The owners association must insure the building and also maintain public risk insurance to cover against personal injury to owners and occupiers with in the strata development and such insurance premiums will form part of the service charges of the owners association.
  • 5.9: Payment of service and charges
  • Each unit owner shall pay the owners association his share of the annual service fee to cover the cost of the management, operation, maintenance and repair of the common areas. Such fee shall be calculated in proportion to the unit area of the total area of the jointly owned property.
  •  The master or sub developer pays his share of service charges with respect to unsold units.
  •   The owners association shall have a lien on every unit for unpaid service fees and any other obligations levied against the unit owner in accordance with the provisions of the strata law or the association constitution. This right shall exist even when ownership of the unit has been transferred to a new owner.
  •    If the unit owner does not pay his share of service fees or defaults on any of his other obligations, the decision the manager of the owners association takes against the unit owner shall be, after three months of being notified to him through the notary public, enforceable by the execution judge in any competent court.
  •   In all cases the affected person may object to the decision within the three month period, and in such event the execution shall be withheld until a decision in the subject of the objection has been made.

 

  • An offshore company is a business entity that is formulated in a low tax or tax jurisdiction for the purposes of legally minimizing any type of tax payment and improving your wealth management. “A wealth management tool that can be utilized by anyone legally and legitimately.”.
  • open an offshore company to gain confidentiality over their financial affairs and grow wealth without intrusion. Offshore companies can eliminate or minimize many types of tax payments such as: Capital Gain Tax, Death duty, profits on business earnings and property sales. An offshore company legitimately assists you in gaining confidentiality over your financial affairs and growing your wealth.
  • mon that offshore companies are used as property-owning vehicles for property in Dubai. Dubai has recently introduced regulations that allow offshore companies to be set up in two distinct “free zones”. These free zones have broadly similar regulations that permit offshore companies to own property in designated or approved developments. Set-up costs (of a few thousand dollars) and annual renewal costs (of a few hundred dollars) are relatively low although there are several restrictions on what these companies can do in Dubai. The regulations require a Registered Agent to be in Dubai and several firms of lawyers and accountants are registered to act as such.
Dubai is fast becoming an economic, business, and traveling destination. With more and more people relocating to Dubai for business, employment, and leisure, the property market is going through a boom and investment in this sector is nothing but potential revenue.
The reasons why Dubai is emerging as a good investment opportunity are:
 
• In Dubai, investment in any kind of real estate property be it an apartment, villa , town home, or commercial complex is still a lot cheaper than in any other advanced county be it Japan, US, UK etc.
This is mostly because of lower taxes, lower currency rates and better options and plans being available.
• In Dubai, the only major deterrent factor is the house rent, which is very expensive. So   investing in a property is far cheaper than renting an apartment or a house.
• With more and more banks and mortgage firms offering mortgages or loans in Dubai, there are varied options for expatriates to seek for loans. Also, with more people opting for mortgages; interest rates are also going down.
• Dubai is all set to introduce a law where even foreigners can own properties. Moreover, one can convert the present leasehold option to freehold option in which there is more concrete and assured definiteness. And with the introduction of this option, more people will invest in Dubai’s real estate.
• With rapid growth and expansions and with the growing number of expatiates and tourists, a space crunch is also looming in the offing, with the ratio of apartments/hotels to people not adding up. In trying to meet the demand, the real estate sector is growing.
• Dubai’s international presence is also a factor for increased real estate investments. People are recognizing the city’s importance in the international scene and its stupendous growth and are investing in major real estate ventures.

Dubai is a vibrant cosmopolitan city. The city is growing at an amazing pace. Its economy is growing in statures and a lot of developmental activities are underway. In that, the appeal for people from around the world invest in Dubai’s real estate market could be:

• For Dubai’s economy it is definitely boom time and is a welcome note to investors.
• Dubai is a tax-free haven. There is absolutely no form of taxes to be paid for ex. Income tax, property tax etc.
• Advance infrastructure.
• Dubai’s vibrant, lively cosmopolitan environment is also a plus.
• There are no political upheavals in Dubai. Also, there are no known terrorist activities in the city.
• Advance communication technology is also an appealing factor.
• It’s safe to reside in Dubai. It has a very low-crime rate.
• The schools and education system are also good.
• Advanced healthcare services.
• Investing in Dubai is still a lot cheaper than in many other parts of the world.
• There are plenty of entertainment options in Dubai like beaches, great dining spots, malls, clubs, pubs, multiplexes, amusement parks etc.
• Clean, safe and secure environment.

If one were to invest in a property in Dubai, then one is eligible for a resident visa. The only clause being that the contract should stipulate that the person is entitled to a resident visa in light of purchasing property in Dubai. Resident visas are just like regular visas that are issued when a person has a work permit and this visa does not act as a replacement to the work permit. This visa is issued for a person who plans to live in Dubai for a long period of time.
Resident visas issued with the purchase of a residential property have to go through normal immigration rules and they are renewable after every three years. Resident visas are also issued to one’s spouse and children. If a person is out of the country for more than six months, then the residence visa is rendered void.

• A buyer of a freehold property in Dubai only needs to provide a copy of his passport papers to purchase a property on the primary market, i-e Direct from a developer.
• A company purchasing a property must provide the developer the company’s registration documents (Articles of incorporation, Registration Certificate, Power of Attorney of the person signing on behalf of the company, and Board of Directors Resolution).
• Either Entity, i-e, a person or a company, needs only to sign a property reservation contract with the developer to purchase a property.
• On handover of the property to the property purchaser, the property purchaser will have to register his property at the Govt. of Dubai Lands Dept. to obtain a title deed. The property purchaser would be responsible for paying the fees to the Govt. of Dubai Lands Dept. to obtain a title deed this normally amounts to 2% of the property value. The property value must be full paid up so as to obtain a Title Deed from the Govt. of Dubai Lands Dept.

  • Cash / Wire Transfer / Bankers draft / Money order / Credit Card (at a later date).
  • haser purchases the unit without finance then the payment is made in AED via bankers draft or telex transfer to the building owner and NOT to its agents, unless specifically authorized in writing by the owner.
  • Typically, developers delay the staggered payment schedule if a property is not completed on time.
  • You have the option of registering online via Ejaari or the Dubai Lands Department will accept original tenancy agreement for registration. Before any dispute between landlord and tenant the tenancy agreement must be registered.
  • Dubai Land Department is a government organization that was established on January 24th 1960 to oversee affairs related to lands and private properties in the emirate of Dubai in order to register these land and properties in a systematic and effective manner and to safeguard the rights of people.
  • Agency that has its own financial and administrative independence with full legal authority to regulate the real estate sector in Dubai. It was launched on the 31st of July 2007 by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, vice president and prime minister ruler of Dubai, as a part of the Dubai Land Department.
  • Yes, a land or property can be purchased in the name of a company on the condition that this company or establishment is registered at the competent authorities, and wholly-owned by a UAE national (100% ownership).
The following documents are required:
 

-Original Land Map as issued by the Dubai Municipality (issued before six months or less).
-Copies of passport and nationality certificates of new owners.

  • The law does not restrict the number of lands to be registered.
  • The Land Department applicable laws and regulations stipulate that it is impermissible to dispose of the lands donated to the UAE nationals unless a permission is obtained from H. H. the Ruler. This permission that allow donated-lands to be disposed is called "No Hindrance of Disposal".
  • A person donated a land by the Ruler may mortgage such land at the banks duly licensed to operate in Dubai. Mortgage should be made against the construction on the mortgaged land provided that the mortgage is equivalent to the loan value. No mortgage is to be registered at the Land Department in favour of any mortgagee rather than the duly licensed banks to duly register the mortgages, the loan should be expensed against the construction on the mortgaged bank. The contract should contain the mode of payment of the installments of the loan value.
  • The Land Department registers the replacement of a donated land with another land. It does also legalize the change of the donated land of a person to another one donated to another person upon a prior exchange took place in the Municipality.
  • Yes, you could transfer the mortgage loan from one financial body to another but only after providing the Land Department with a no objection letter and mortgage termination letter from the first financier.

Department will not disclose information on its clients due to the privacy policy it upholds on the matter. However, information on the land condition could be viewed via specific information machines spread all over the transaction area at the Department.

  • Owners could submit a request for a title deed from the day they have signed the formal ownership papers (contract) with their developers. They are to request this procedure form their main developers (e.g. Emaar, Nakheel and Dubai Properties) after which they wither will receive a no objection letter that they have to represent to the department or else the developer is to undertake the whole process in their place.
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