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Legal update September 2008 UAE and Qatar

30 Sep 2008

Dubai

Law No. (13) of 2008 - Regulating the Interim Real Estate Register in the Emirate of Dubai

• Law No. (13) of 2008 regulating the interim real estate register in the Emirate of Dubai came into force on 31 August 2008 and establishes the interim real estate register and provides that:
• An interim real estate register is established to record all disposals of property off-plan. Any sale or other disposition that transfers or restricts title to a property or any ancillary rights shall be void if not recorded on the interim real estate register.
• Any developer who made a sale or other disposition that transferred or restricted title to a property prior to 31 August 2008 must register the sale or disposition in the real estate register or interim real estate register by 30 October 2008.
• No developer can commence a project or sell its units off-plan before taking possession of the land on which the project is to be built and obtaining the necessary approvals from the relevant authorities.
• The fees that a developer can charge upon re-sale of property are prescribed by the law.
• A developer must follow the procedures prescribed by the law if its purchaser breaches the sale and purchase agreement between them.

Law No. (14) of 2008 - Mortgages in the Emirate of Dubai

• Law No. (14) of 2008 concerning mortgages in the Emirate of Dubai comes into force on 30 October 2008 and provides that:
• A mortgagee must be a bank, company or financial institution that is duly licensed and registered with the UAE Central Bank to provide finance for property in the UAE.
• A mortgage is not valid unless it is registered and any agreement to the contrary is void.
• A musataha holder and the holder of usufruct or long term lease for a term between 10 and 99 years may mortgage their interest in a property.
• A mortgage of a property purchased off-plan or under construction must be registered on the interim real estate register.
• A mortgagee must follow the execution proceedings prescribed by the law if the mortgagor defaults under the mortgage.

The above legal information is supplied courtesy of Al Tamimi & Co.

 Property Ownership in the Emirate of Ajman – Northern Emirates

 Emiri Decree No. 7 of 2008 regarding the ownership and registration of land in the Emirate of Ajman and Emiri Decree No. 8 of 2008 regulating strata title real estate projects and investment buildings were issued on 2 June 2008 and provide that:

• Freehold ownership of land, investment buildings (consisting of individual units and common parts) and units anywhere within the Emirate is permitted for:

a. UAE and GCC nationals
b. Companies and entities wholly owned by UAE and GCC nationals
c. Public joint stock companies incorporated in the UAE
d. Public corporations and authorities incorporated in the Emirate.

• Foreigners may, with the Ruler’s consent, own an investment building or unit within an investment building within areas designated by the Ruler on a freehold basis not limited by time or long term leasehold right for such period and under such terms and conditions specified by the Ruler.
• The Ruler may also exceptionally agree to grant foreigners the right to own land and structures built thereon as freehold not limited by time or the usufruct right or leasehold right for a period not exceeding 50 years renewable at the discretion of the Ruler and subject to such conditions as the Ruler deems appropriate.

The above legal information is supplied courtesy of Al Tamimi & Co.

Real Estate Regulations Highlights – Qatar

Cabinet Resolution No. 6 of 2006 Concerning the Grant of Property Ownership to Expatriates

The resolution addresses the conditions pertaining to the ownership of real estate in Qatar by expatriates who are allowed to own properties on a 99 year leasehold basis in 18 designated areas in Qatar.

These areas include: Musheireb (Zone 13); Fariq Abdul Aziz (Zone 14); Doha Al Jadeed (Zone 15); Old Al Ghanim (Zone 16); Al Rufaa/Al Hitmi (Zone 17); Salata (Zone 18); Bin Mahmoud (Zone 22 & 23); Rawdat Al Khail (Zone 24); Mansoura/Bin Dirham (Zone 25); Najma (Zone 26); Umm Ghuwailina (Zone 27); Al Khulaifat (Zone 28); Al Sadd (Zone 38); New Mirqab/Al Nasser (Zone 39); areas around the Doha International airport (Zone 48); Al Dafna/Onaiza/Al Qasser (Zone 60, 61 & 63); and Lusail (Zone 69 & 70).

Source: Cityscape Intelligence