United Arab Emirates: 02/01/2006 Gulf News Newspaper
Dubai likely to unveil property law this month
The Dubai government is expected to announce the new property law this month, the final copy of which awaits the Ruler's approval, said a senior government official.
The new law is expected to allow a combination of 99-year renewable lease and freehold rights in limited locations in Dubai.
This will be followed by a decree that will regulate the freehold market for expatriates and limit it to certain projects being developed by a handful of developers.
"The proposed law is in final shape and is awaiting the signature of His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to become a law," Mohammad Sultan Thani, director development and marketing administration in the Dubai Lands Department, told Gulf News yesterday.
"We expect the new law to be approved anytime following the mourning period that ends in the second week of February.
"Once the new law is issued, Dubai Land Department will facilitate the registration of freehold properties in the name of respective owners.
"Foreign property owners will then have title deeds registered by us in their names. They will then be able to sell these to others on their own and the Land Department will facilitate the transfers and issue new title deeds to the new owners."
He said, the Land Department will publish booklets on the fee structure on transactions and step-by-step guide on registering properties, inheritance, mortgage and change of ownership of properties for the expatriates once the new law is issued.
Currently, Emaar Properties, Nakheel and Dubai Properties are the only three mandated master developers allowed to offer freehold properties.
More than 13,000 expatriate families have already moved into new freehold homes whose ownership will be formalised through the registration process, to be initiated by the master developers. Of the 13,000 homes, Emaar delivered more than 12,800.
Currently, homeowner rights are guided by an agreement between the buyers and developers who extend a government guarantee on the ownership of property.
The new law offers a broad guideline to regulate the emirate's real estate market that witnessed explosive growth in 2003-2005 period.
"The new law also has provison for collective ownership and community responsibilities, especially linked to the large towers where each apartment owner also owns a part of the land," Thani said.
