The definition of lease land granted and jointly owned property

GCC nationals have access to leasehold interests across Dubai. In all of Dubai, non-GCC nationals may purchase short-term leases, but only in Designated Areas may they purchase “long” leases. The term “long lease” (abbreviated “Long Lease”) refers to any lease that is for ten years or more.

It is required that all leases be registered.  For leases of shorter than 10 years, a tenant must register with the Real Estate Regulating Agency (a govt. body) in Dubai (or “RERA”) and provide proof of registration in order to be allowed to connect to utilities and telecommunications services. Long Leases must be registered at the DLD, and a title certificate is then given out.

The concept of land granted

A piece of land property in the UAE is “gifted” by the Ruler of Dubai to a citizen of the UAE as a form of ownership. The intention behind the gift may be either commercial (i.e., to create a business asset) or domestic (i.e., to create a house for the recipient). Even though the ownership is thought to be perpetual, the Ruler has the power to withdraw the gift at any moment.

Additionally, there are a number of limitations on granted land. The person who received the land as a gift is not permitted to sell it, transfer a leasehold interest in it, or otherwise dispose of it without the Ruler’s express consent.

According to our observations, land donors are hesitant to request such authorization. Any transaction that violates this limitation will be regarded as being invalid. In order to avoid breaking the law, an investment involving awarded land must be properly arranged.

By submitting applications to the DLD and paying a fee equal to 30% of the property’s then-current market value, commercial (including agricultural) land can be “converted” from granted title to “private” title (i.e., freehold title). The DLD will demand payment of 50percent of the land’s then-current market value if the grantee has already transferred the property to a third party, who subsequently applies for title.

The concept of jointly owned

For the common spaces of a condominium or mixed-use property development (which are frequent in Dubai, particularly in the Specified Areas, which frequently include master planned communities), there is a jointly held property legislation.

According to the legislation governing jointly held property, each proprietor of a property within a project owns a part of the common elements approximately the size of its own unit and contributes to the maintenance of the common elements in the same proportion. The homeowners’ association, comprised of each owner, is thereafter in charge of overseeing the development’s maintenance.

Since the legislation governing jointly held property has not yet been put into effect, the developer of such projects typically retains ownership of both the common areas and charges the unit owners a service fee.

ge fee.” The lender covers this.

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