Until 2006, the property in Dubai, in fact, was not regulated because it lacked an official register of buildings. In addition, the foreign national was not possible to acquire full ownership of a property but only temporarily. Therefore, real estate purchases could present serious risks for non-experts.
In order to reassure investors and to create a solid and transparent market in 2006 was introduced in Dubai Law No. 7 / 2006 which provides for first registration of ownership over the property in a special register (comparable to our land) held and managed by a government agency.
The law has also introduced an additional element of novelty in that it permits to foreigners – be they natural or legal persons – to acquire full ownership (or the right to lease for 99 years) of properties in certain areas designated by the Government of Dubai ( cd freehold property area).
In all other areas, however, only citizens or companies of the UAE or the Gulf countries can acquire full ownership of the property.
The areas designated for foreigners are listed in Regulation No 6 of 2006, which includes 23 areas of “freehold property”.
The law has entrusted to a special government body, the Dubai Land Department (also known as DLD) is responsible for maintaining the register of land ownership, which must be entered each other and any transaction relating to a property. In the absence of such registration, the transaction will be considered null and void.
This register, called the Land Register, is an electronic register maintained by the DLD which are specified in the descriptive data of the property, its location and the rights and burdens imposed on it.
The results of the log count as legal proof unless it is proved that they are the result of fraud and forgery.
Once you register a contract that gives ownership of the property, the DLD of the person entitled to issue a “certificate of ownership” (ie the title certificate) that is the only document that is authentic about the ownership of the asset.
The DLD has exclusive jurisdiction not only to record the rights set forth above, but also has very extensive powers in relation to the monitoring of legal and physical properties, being able to carry out inspections of various kinds.
In the case of condominiums (horizontal or vertical) in the register is used only on a number to plot of land on which they are constructed and then there is the specification that defines the owner of each unit, the floors and common areas .
The log also included details of the condominium where the units could be included are real estate and condominium documents (Rules and Regulations of the condominium association).
It should be noted that the violation of a right to pass on a property results in only a financial liability of the promisor and does not create any right to obtain a conviction in the forced transfer of the property.
Ultimately, the law in question has created a climate of greater security and confidence in buying properties in Dubai, since it ensures the full ownership and maintenance of a register similar to our land as it offers certainty to real estate transactions.
With the ability to record the rights and charges on individual units, is now even easier to obtain mortgage financing (see the Mortgages Act).
Documents needed to register the title at the DLD
A foreigner who intends to register the title to their property located in areas designated “freehold”, must file with the DLD the following documents:
* Copy of the original title;
* Copy of terrain maps and technical drawings and certificates of completion;
* Copy of the contract of sale where the price should be clearly stated;
* Copy of passport of the buyer;
* No objection certificate from the financing bank, if the property is mortgaged;
* No objection certificate to the seller.
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