The Property Law Thread

[dubaiflo]

"rent for a period not exceeding 99 years"

my english is not the best, but i think they mean, you can own it longer but not rent it out it out longer than 99 years.

[Salty]

Originally Posted by smussuw

''Upon approval of the Ruler, non-nationals may be given the right to own a property in some parts in the Emirate on a free-hold basis, to usufruct or rent for a period not exceeding 99 years,'' the law states.

I think it means:

1) non-nationals will be given the right to own freehold properties in some areas (e.g. the Palm Islands, Dubai Marina etc); and

2) in other designated areas non-nationals will have the right to usufruct or rent for 99 years (i.e. buy a 99 year lease).

I looked up "usufruct" (which even for English speakers is not an everyday sort of word) and this is the definition I found:

"The right to use and enjoy the profits and advantages of something belonging to another as long as the property is not damaged or altered in any way."

No doubt tomorrow's papers will make things clearer.

I think this is the day we've all been waiting for. Congratulations to all you purchasers, and congratulations to Dubai!!!

Flo,

Are you back to your old self? You sound in great form.

[malec]

Expatriates get rights to own property in Dubai

By Saifur Rahman, Business News Editor


Dubai: In a landmark move, the Dubai Government yesterday issued a long-awaited property law that legalises foreign ownership of properties in pre-designated areas in the emirate.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, yesterday issued Law No. 7 that legalises freehold ownership of land and property for UAE and GCC citizens, while allowing the same rights to non-GCC expatriates to pre-designated areas that will be approved by the Ruler of Dubai.

Non-GCC expatriates will be given the right to acquire freehold and 99-year lease property, in areas designated by the Ruler.

The law comes nearly four years after the government first announced freehold ownership to expatriates, grouped under three Dubai-government owned entities Emaar Properties, Nakheel and Dubai Properties. More than 13,000 expatriate families have already moved to their new homes, without securing title deeds in their names, while another 7,000 are expected to move in by the end of the year.

The new law paves the way for expatriate homeowners to register their properties in their names with Dubai Lands and Properties Department, which has been gearing up for the rush in registration.

The law will be followed by a number of new bylaws that will identify the freehold areas in Dubai and determine the registration fees and procedures.

"The law sets out the framework for freehold real estate ownership in Dubai. It confirms the right of UAE and GCC nationals to own property and makes provision for foreigners to own real estate as well," said Mohammad Ali Al Abbar, chairman of Emaar Properties.

"This will give a boost to the secondary market in real estate. This is a development to be welcomed, since it will be another sign of growing confidence in the market," said Sa'ad Abdul Razzak, chief executive of Dubai Islamic Bank.

- With additional inputs from WAM

What the law says about ownership

* UAE nationals can own property on 99-year lease and freehold anywhere in Dubai
* Expatriates can own property on 99-year lease and freehold only in designated areas

What Next

* The Dubai Lands Department will be the final registration authority for properties
* Bylaws will be issued to determine locations of freeholds as well as registration and transfer fees, which are currently 2% of the property value)
* The Land Department will issue booklets and guidance for property registration soon
* Hectic activities are expected at the Lands Department
* Dubai recorded Dh32.1 billion worth land transaction in 2005

[dubaiflo]

ok that sounds great and finally a gulf news article.

now final question, when is everything applied, when will buyers be registered etc?

[Naz UK]

Flo, i'll race ya to the registration office....There's gotta be an initial bum rush of ppl trying to get their title deeds!

[smussuw]

I think they put it this way in purpose so that they interpret it the way they want

[DarkBlueBoss]

I am not sure if I understood the article right, but nothing new there ?? right ?

[smussuw]

before expats werent able to register their land in Dubai Lands and Properties Department, now they can.

[smussuw]

Originally Posted by Salty

I think it means:

1) non-nationals will be given the right to own freehold properties in some areas (e.g. the Palm Islands, Dubai Marina etc); and

2) in other designated areas non-nationals will have the right to usufruct or rent for 99 years (i.e. buy a 99 year lease).

I looked up "usufruct" (which even for English speakers is not an everyday sort of word) and this is the definition I found:

"The right to use and enjoy the profits and advantages of something belonging to another as long as the property is not damaged or altered in any way."

No doubt tomorrow's papers will make things clearer.

I think this is the day we've all been waiting for. Congratulations to all you purchasers, and congratulations to Dubai!!!
.

I think ur right

[V Kapoor]

Thumbs up to new regulations
By Saifur Rahman, Business News Editor



Dubai: Industry officials yesterday hailed the new property law issued by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, saying the Government has stood by investors who have purchased properties within the freehold communities.

Shaikh Mohammad yesterday issued Law No. 7 that legalises freehold ownership of land and property to UAE and GCC citizens, while allowing the same rights to non-GCC expatriates to pre-designated areas that will be approved by the Ruler of Dubai.

"It is the visionary guidance of Shaikh Mohammad that has prompted the issuance of the Dubai Real Estate Register Law. It is a testament to a pioneering emirate and one that keeps its promises to the people," Mohammad Ali Al Abbar, Chairman, Emaar Properties, said in a statement.

"The law sets out the legislative framework for freehold real estate ownership in Dubai. It confirms the right of UAE and GCC Nationals to own property anywhere in Dubai and makes provision for foreigners to own real estate in Real Estate Areas designated for that purpose. It reaffirms what Emaar introduced with the launch of Emirates Hills in 1999. As the first project in Dubai or anywhere in the region, that offered a unique opportunity for nationals and expatriates to purchase land and build their dream home, Emaar broke new ground with a concept that had never been tried before.

"The Government of Dubai has stood by investors who have purchased property within Emaar communities. The issue of this law further reinforces Dubai's commitment to investors in the region and internationally and encourages more investors to look at property purchase within the emirate, as a stable and long term investment.

Documentation

"We will work with the Dubai Land Department on the documentation and procedures required for registration of ownership for our investors and will be converting the necessary documentation in due course."

The law includes 11 chapters comprising 29 articles covering the issues of definitions, general rules, the implementation system of property hold, and the jurisdictions of the Dubai lands and properties Department.

It also stipulates the setting up of a property registration office at the Dubai Lands and Properties Department. This office will be responsible for documenting property rights and their amendments. Its records hold the ultimate evidence against all without exceptions. Its records cannot be challenged except in the case of forgery.

The law comes at a time, when Dubai's freehold property market is undergoing a correction phase, with prices coming down to a more realistic level, market sources told Gulf News. However, the new law will boost the market in a big way as many new investors were holding their money, awaiting new law.

The law is expected to boost the price of residential units in the freehold market, which has been softening over the last few months.

"Dubai Islamic Bank welcomes the announcement of a real estate register law. We believe that this law will contribute greatly to building investor confidence, especially among expatriate home buyers," Saad Abdul Razzak, chief executive of Dubai Islamic Bank, said.

"We also expect the law to give a boost to the secondary market in real estate. This is a development to be welcomed, since it will be another sign of growing confidence and maturity in the market.

"The law is a positive development, and will be another key element in the Dubai's emergence as a mature and prosperous economy."

The law comes nearly four years after the government first announced freehold ownership to expatriates, grouped under three Dubai-government owned entities - Emaar Properties, Nakheel and Dubai Properties. More than 13,000 expatriate families have already moved to their new homes, without securing title deeds in their names.

The new law paves the way for the expatriate homeowners to register their properties in their names with Dubai Lands and Properties Department, which has been gearing for the rush in registration.

Positive development

Arif Naqvi, chief executive officer of Abraaj Capital, said, "Abraaj Capital welcomes the announcement of a Freehold property law. We believe that this law will contribute greatly to building investor confidence in Dubai, especially among expatriate investors.

"As the manager of one of the region's largest real estate private equity funds, Abraaj Capital sees this development as very positive, and one that will give a boost to the secondary market in real estate. This development is another sign of the growing confidence and maturity in the market.

"The law is a positive development, and will be another key element in Dubai's emergence as a mature and prosperous economy."

A number of international real estate funds are expected to enter the market, who were watching the development of Dubai's property market. The absence of the law held many investors back, who will now bring in more liquidity to tap the market.

Dubai is the first emirate in the Gulf to open up its real estate for foreign ownership in 2002, at a time when repariated Arab capital was looking for investment opportunities. Despite the absence of a law, investors pumped money into freehold projects, based on their confidence on Dubai Government's committment.

As a result, a New Dubai was built on both sides of Shaikh Zayed Road and beyond. The new law only formalises and legalises them.

AT A GLANCE
Freehold ownership of property legalised

UAE Nationals: Freehold ownership and 99-year lease anywhere in Dubai.

GCC Nationals: Freehold ownership and 99-year lease anywhere in Dubai.

Non-GCC expatriates: Freehold ownership and 99-year lease in designated areas.

Freehold home-owners: More than 13,000 (7,000 more this year).

Freehold locations: To be announced later.

Property/Title registration: Dubai Lands Department.

Land registration/transfer fees: To be announced shortly (Currently 2%).

Property prices: Expected to go up.


Source : GulfNews 15.March, 2006.

[V Kapoor]

What the law says about ownership

UAE nationals can own property on 99-year lease and freehold anywhere in Dubai
Expatriates can own property on 99-year lease and freehold only in designated areas
What Next

The Dubai Lands Department will be the final registration authority for properties
Bylaws will be issued to determine locations of freeholds as well as registration and transfer fees, which are currently 2% of the property value)
The Land Department will issue booklets and guidance for property registration soon
Hectic activities are expected at the Lands Department
Dubai recorded Dh32.1 billion worth land transaction in 2005


From: GN

[V Kapoor]

Details of the new Dubai property law
Staff Report



Dubai: The long-awaited Dubai property law was issued yesterday by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

The law says expatriates 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.

They may be given the right to acquire a freehold property, or a 99-year lease property, in areas designated by the Ruler.

The law includes 11 chapters comprising 29 articles covering the issues of definitions, general rules, the implementation system of property hold, and the jurisdictions of the Dubai lands and properties Department.

It also stipulates the setting up of a property registration office at the Dubai Lands and Properties Department. This office will be responsible for documenting property rights and their amendments. Its records hold the ultimate evidence against all - without exceptions. Its records cannot be challenged except in the case of forgery.

The law says that a multi-storey property is considered a single property unit that shall be given one entry in the property record. All apartments of a single property unit will have supplementary records that include names of the owners of its apartments, storeys and any common facilities.

Following are the excerpts of the new Property Registration Law:

Article No.3

Provisions of this law are applied to properties located in Dubai.

Article No.4

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, designated by the Ruler, on a freehold basis, or a 99-year lease.

Article No.5

The original documents and judicial rulings upon which properties are registered are to be kept at the Lands and Properties Department.

It bans the removal of documents from the department. Judicial bodies or any expert or committees assigned are authorised to review the documents and get attested copies.

Article No.6

The Lands Department is solely assigned to register property rights and long-term leasing contracts as stipulated in Article No.4 of this law.

Under the law, the department will carry out the following duties:

1-Specifying survey areas or re-conducting surveys and attesting location maps.

2-Specifying rules related survey and releasing maps related to property units.

3- Preparing model property contracts.

4-Setting rules related to regulating, keeping and destroying documents.

5-Setting rules related to the use of Computer in data entry and saving.

6- Setting rules related to the regulation and keeping the records of property brokers.

7-Setting rules related to the assessment of properties.

8-Setting rules related to the sale of properties in auctions, and supervising the auctions.

9-Fixing fees for services offered by the department.

10- Setting up branches of the department upon the director's discretion.

Article No.7

A property register at the Dubai Lands and Properties Department shall be set up for documenting property rights and their amendments. Its records hold the ultimate evidence against all without exceptions. Its records cannot be challenged except in the case of forgery.

Article No.8

Documents of the property register which are electronically saved, have the same evidential value of the original documents.

Article No.9

All property transactions and deals that result in giving, moving, changing or removing property rights, must be registered with the property register. And so must all the final rulings that prove such dealings, which are not considered valid until they are registered.

Article No.10

To undertake transferring any property rights is limited to the contractor's commitment to the guarantee if he defaulted on his contractual duties whether a compensation was stipulated in the undertaking or not.

Article No.11

The inheritance notification must be registered with the property register, in case heirs have property rights within their inheritance. And, no dealings will be admitted unless registered.

Article No.12

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

Article No.13

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

Article No.14

The department coordinates updating property data with parties concerned.

Article No.15

The registration of property areas and units at the property register must be based on typographic, property unit and property area maps. It also reads that each property area must have an independent map, manifesting all property units in the area and their numbers.

Each property unit must also have a separate map, showing its location, boundaries, length, area and buildings, and the numbers of neighbouring units.

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.

The above-mentioned certificates must include any terms, conditions, undertakings or any other commitments.

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.

Any agreement or deal concluded in violation of this law is invalid. Any person, department or public prosecution has the right to contest such a deal.

This law abrogates the provisions of the decree concerning legal and penal suites related to land transactions in Dubai, dated November 6, 1997

The Chairman of the department issues the necessary regulations and rules to put this law into effect.

The law shall be published in the official gazette, and is to be taken into force from the date of its issuance.

- Compiled by Khitam Al Amir and Dina Abu Al Hosn/Staff Reporter


Source GN 15 March, 2006. Under Article 4 Non-national may be given right to freehold ownership in designated areas in Dubai.

[DubaiDream]

f****n excellent news!! now all we need is for all those stockmarket investors to switch to real estate as the stockmarket fallz

[Ruminative]

watch the villa prices go sky rocketing (coz of the land u get wit it)... i wonder if apartment prices will be affecte too

[kano]

Originally Posted by Ruminative

watch the villa prices go sky rocketing (coz of the land u get wit it)... i wonder if apartment prices will be affecte too

With so many apartment towers coming up i guess it will depend on... location location

[Emir of Ketir]

Yeah, finally. It will be very interesting to see how the market will act in the coming months. It will show to a degree how much trust property buyers have in the current leadership, in particular in Dubai's and its role in the federal system. If the market remains unchanged probably buyers and speculators have priced it in already, or were expecting the move and therefore have bought before. If the market tumbles more it probably means that investors believed that the ownership rights granted would have been more far reaching.

[Towers]

V kapoor who are you, u never post, do you live in the UAE?

[docc]

Who said that you get the land with the villa that you purchase? I still think that what Salty said isn't entirely correct and that 99-years lease is the ONLY option, doesn't matter how many "usufruct" kind of words you add to it.

I'm going to speak to my real-estate agent to confirm all this.

Oh and as Kano said, apartment prices will go up or down depending PURELY on the location.

[smussuw]

I read it on the local newspaper.

It has two options as salty have said.

[docc]

Hmmm, so that means if someone purchases a villa say in Meadows, Jumeirah Islands etc etc, they also own the land on which it is constructed? Also, this ownership is only for 99 years, correct? Which means, you cannot technically pass it to your next of kin, which is the procedure in the States and even in Asian countries.

Its not "real" freehold if you get into details. Oh well, the way this world is going, i would be lucky enough to see the next 25 years