//Foreigners may be able to buy land in Dubai

Foreigners may be able to buy land in Dubai

DUBAI — His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued in his capacity as Ruler of Dubai Law No. 7 of the year regarding the registration of property. The law grants ownership rights to UAE nationals, GCC nationals, companies owned by UAE and AGCC nationals and public joint stock companies.

Executive statutory will be issued by land department shortly to lay down the rules and regulations governing different topics such as registration requirements, documentation, filing application, fees and other issues.

Upon the approval of the Dubai Ruler, the law with 29 articles gives the foreigners the right to lease or purchase land, after getting approval from the three master-developers, Emaar, Al Nakheel, and Dubai Real Estate.

After the approval from the ruler, the developers will determine the plots, which will be put on sale for foreigners. Foreigners, residing in the UAE or abroad, will be able to purchase the plots as per a contractual agreement with any of the three developers.

A land will be registered in the name of a foreigner only after the developers submit a no-objection letter, stating that all the payments for the transaction have been made in full.

There are three kinds of ownership proposed in the legislation: free hold, usufruct, and common hold. The owner will have complete ownership rights over a free hold property and the building in this case will be in the owner’s name.

The second category is usufruct or long-term lease. The law characterises ‘usufruct’ as the right to use another’s property short of destruction or waste of its substance. The right of usufruct, as per the law, should not be for less than five years and the maximum validity 99 years.

The registration fee for the transaction will be two per cent of the total value of the property, of which 1.5 per cent has to be paid by the purchaser and the rest by the seller. After the payment of the whole amount, the owner is free to either bequeath the property or sell it.

Under the law, a real estate register shall be set up at the Dubai Land and Properties Department. The data recorded shall have indisputable legal title except in cases of forgery.

According to the law, a multi-story property shall be dealt with as one unit in the register.