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:
-Specifying survey areas or re-conducting surveys and
attesting location maps.
-Specifying rules related survey and releasing maps related
to property units.
-Preparing model property contracts.
-Setting rules related to regulating, keeping and destroying
documents.
-Setting rules related to the use of Computer in data entry
and saving.
-Setting rules related to the regulation and keeping the
records of property brokers.
-Setting rules related to the assessment of properties.
-Setting rules related to the sale of properties in auctions,
and supervising the auctions.
-Fixing fees for services offered by the department.
-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.
