Module 3: Concepts, Definitions & Market Players
Module Objectives
This module introduces:
- Key market players, regulators and educators with a close look at the roles and functions of Dubai Land Department (DLD), Real Estate Regulatory Agency (RERA), Rental Dispute Center (RDC), and the Special Judicial Committee for the liquidation of cancelled property projects in the Emirate of Dubai.
• The main systems and registers maintained by RERA
• Property ownership types and key differences between them.
Dubai Land Department (DLD)
DLD was established on January 24th 1960 by Sheikh Rashid bin Saeed Al Maktoum to oversee affairs related to lands and private properties in the Emirate of Dubai, to register these lands and properties in a systematic and effective manner and to safeguard the rights of people.
DLD’s vision is to position Dubai as the world’s premier real estate destination and a byword for innovation, trust and happiness.
DLD’s mission is to create an innovative and sustainable real estate environment that promotes Dubai as the world’s happiest city through:
– Smart services.
– Professional human and financial resources.
– Integrated real estate legislation.
DLD aims to do that by:
– Developing and applying clear and transparent real estate regulations.
– Providing distinctive and efficient real estate services that help attract investment
– Increasing real estate knowledge.
Real Estate Regulatory Agency (RERA)
The Real Estate Regulatory Agency was established as a result of a law issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, in 2007.
His Highness Sheikh Mohammed Bin Rashid Al Maktoum, has issued a new law regulating the Real Estate Regulatory Agency (RERA). The new law issued, Law No. 4 of 2019, states RERA as a public institution, to come under the Dubai Land Department. RERA is the regulatory arm of the Land Department, where the department sets legislations to regulate the relationship between all contracting parties and to organizes the exchange process of properties.
The new law includes restructuring the legal provisions of the agency, which was established pursuant to Law No. (16) of 2007.
According to the new Law, the objectives of RERA include contributing to the development of Dubai’s real estate sector within an integrated system of regulatory and monetary procedures and enhancing the sector’s contribution to Dubai’s economy. The department provides many services to clients in Dubai, extending its role to planning, organizing and evaluating operations related to real estate license. It also monitor projects financially and technically to protect investors.
Furthermore, RERA will work to provide a secure environment for real estate projects in order to protect the rights of developers and investors, implement new projects and programs that enable them to explore new real estate opportunities and promote professional and ethical standards in the industry.
Pursuant to this Law, RERA is responsible for:
• Regulating and overseeing real estate development escrow accounts;
• Accrediting financial institutions that are qualified to manage real estate development escrow accounts; and
• Approving regulations that govern development, brokerage and management of real estate including joint property.
RERA also:
• Monitors real estate advertisements published in media outlets in the Emirate;
• Develops and launches awareness programs in collaboration with Real Estate Institutes to educate the public about their rights and responsibilities; and
• Prepares and updates policies designed to balance supply and demand.
Dubai Land Department will replace RERA in registering real estate rental contracts and regulating the relationship between property owners and tenants and any other matter related to real estate rental contracts.
Rental Dispute Settlement Center (RDC)
The Rental Dispute Center, based at Dubai Land Department was moved under the umbrella of DLD through Decree No 26 of 2013. The Center employs mechanisms characterized by flexibility, speed and efficiency to facilitate accuracy, impartiality and transparency when dealing with settlement issues relating to rentals in Dubai real estate market.
Law 6 of 2019 on the Ownership of Common Property:
New dispute resolution mechanism – the Rental Dispute Settlement Centre has exclusive jurisdiction.
Unpaid Service Charges
If a Unit Owner fails to pay service charges, and fails to remedy this within 30 days following notice from the management body which has been approved by RERA, then the management body can enforce their claim for unpaid service charges before an execution judge in the Rental Dispute Settlement Centre.
The execution judge may, when necessary, sell the Unit through a public auction to collect the amount of the unpaid service charge.
The management body shall have a lien on each Unit in respect of the unpaid service charge. The Unit may not be disposed of (sold or transferred) until after this charge is paid to the management body.
Unit owner may pay court and legal fees.
Decree No. (21) of 2013
“Setting up a Special Judicial Committee for the liquidation of cancelled property projects in the emirate of Dubai, and the settlement of rights disputes related to such projects.”
The Special Judicial Committee is tasked with the settlement of disputes between property developers and investors over cancelled projects, in addition to the liquidation of projects that have been decisively cancelled by the Real Estate Regulatory Agency (RERA) as per Law No. (13) of 2008 and its regulations. The committee is made up of at least 3 judges from the Dubai Courts.
The special legal committee is entitled to appoint specialists and consultants. Auditors are to be appointed on the expense of the property developer to examine the financial status, cash transfers and deposits related to the cancelled projects in question.
The committee has the right to take actions and issue decisions to guarantee the rights of those who have purchased property that fall into this category. The settlement of rights disputes, grievances and complaints will be carried out noting that settlement fees will be deducted.
A NEW Special Judicial Committee for unfinished and cancelled real estate projects was announced in 2020
BROKERS’ REGISTERS
ORN
Registered Broker Office
Office Registration Number (ORN)
BRN
Registered Broker/Agent
Broker Registration Number (BRN)
STR
Special Transaction Register
OQOOD
Pre-Title Registration/Interim Reg/Reg of Off Plan Properties
EJari
Lease
Registration
TITLE DEED
Registration of Ready Properties
MOLLAK
JOP Register (Module 7)
Note: Oqood should be registered by the developer at DLD within 60 days from signing the SPA
MOLLAK SYSTEM
The primary aim of MOLLAK is to provide an on-line registration and support system to parties dealing with Jointly Owned Property in Dubai.
Ejari
All new leases must be registered with the Dubai Land Department.
According to clause # 14 of RERA’s “Unified Tenancy Contract” landlords are responsible for registering the Tenancy Contract with Ejari immediately after the lease is signed. However, it’s a common practice in Dubai that tenants pay the related cost as it is required for visa renewals, connecting DEWA, Etisalat / Du phone, etc…).
DEVELOPERS’ REGISTER
REGISTERED WITH RERA
1- Developer
• The Developer must be registered with RERA
2- Project
• The Project must be registered with RERA
3- Escrow A/C
• The Project Escrow A/C must be registered with RERA
Also an NOC given by RERA
Master Developer: A person who is licensed to conduct the real property development in Dubai and to sell real property to others.
Sub Developer: A person who undertakes part of a real property development projects of a master developer under agreement between them.
His Highness Sheikh Mohammed Bin Rashed Al Maktoum promoted the development of real estate through the creation of Emaar.
Emaar developed Burj Khalifa, the tallest building in the world, after the 3.5km long Dubai Marina, set to be the focus of the New Dubai, a high-rise city within a city and home to thousands of residents.
Nakheel became well known with The Palm Jumeirah, a 5km long, reclaimed island shaped like a palm tree, which achieved international fame.
REGISTRATION TRUSTEES = امین التسجیل العقاری
RGISTRATION TRUSTEES
What is the profession of Registration Trustee?
The aim of this service is to execute and complete client’s transactions outside DLD’s working hours through a number of offices licensed by the DLD, in order to facilitate and accelerate the process of property registration for investors.
The new system will accelerate the transaction processing. The Tabu system is responsible for conducting many real estate procedures such as Selling, registering Mortgages …… on a daily basis.
The trustee must be a legally qualified UAE national.
Property Ownership Types
There are two types of real estate ownership in Dubai:
1- Leasehold (also known as long-term lease):
Under this type, the buyer holds the property anywhere over 10 up to 99 years after which time the property is returned to the land owner. In 2001, the Dubai government agreed to allow expats to own real estate on such basis. This was limited to particular projects in Dubai.
- Freehold:
It is where the buyer becomes the owner of the property and the land forever. In May 2002, the crown prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, issued a decree allowing foreigners to buy property on freehold basis. This is limited to specific areas in Dubai, known as designated areas. Sheikh Maktoum’s decree sparked a real estate boom in Dubai’s property sector.
Leasehold Vs. Freehold
Important facts:
- In Freehold you own the property and land FOREVER. Foreign nationals are permitted to own freehold property in “designated areas” approved by the Ruler of Dubai from time to time. Presently, there are over 24 designated areas approved for foreign ownership. (Regulation No. 3 of 2006)
- In Leasehold you own the property, but not the land. Leasehold ownership is anywhere from over 10 years up to 99 years. Foreign nationals are only permitted to enter into a long-term lease of all properties located in “designated areas” of Dubai as determined by the Ruler of Dubai. Long leases cannot exceed 99 years and must be registered in the Real Property Register in the Dubai Land Department pursuant to the requirements of Article 9 of Dubai Law No. 7 of 2006.
- It is important to note that the Tenancy Laws are not applicable over long term leases (leasehold) and the RDC does not have jurisdiction over long term lease disputes.
- Citizens of the GCC are not considered foreigners.
- Both ownership (freehold and leasehold) types give the flexibility to owners to live-in, rent out, modify, sell and for inheritance by heirs (In Leasehold it will be based on the remaining life of the lease).
Designated Areas Where Expats Can Buy and Own Properties in Dubai
. . . . . . . . . . . .
UPDATE ALERT-2025
January 2025
Dubai Land Department (DLD) announced that private property owners on the Sheikh Zayed Road area, from the Trade Centre Roundabout to the Water Canal, and in Al Jaddaf can convert their ownership status to freehold, available to all nationalities.
A total of 457 plots are eligible for the conversion, comprising 128 plots along Sheikh Zayed Road and 329 plots in Al Jaddaf.
Property owners can verify their eligibility through the Dubai REST Smart App. Eligible owners must submit an application to the DLD for land assessment and valuation.
Conversion will involve a fee of 30% of the property’s valuation based on Gross Floor Area (GFA).
After payment, owners will receive a map and freehold ownership title deed. Common area fees and service charges will align with guidelines set by RERA.
This initiative is expected to enhance market value for landowners and attract investments tailored to freehold ownership reinforcing Dubai’s position as a global economic hub and a leading destination for real estate investment, in line with Dubai’s Real Estate Strategy 2033.
Usufruct & Musataha Rights
The Usufruct right authorizes the beneficiary to use and benefit from a property belonging to others. A usufruct typically terminates upon expiry of 50 years unless agreed otherwise between the parties.
The Musataha right authorizes the beneficiary to construct the land and use the building for a period not exceeding 50 years.
Fees
The Dubai Land Department charges the following fees for registration of the various property rights:
Freehold > 4% of the total value of the sale contract
Long leases > 4% of the total rent value
Usufruct agreements > 2% of the real property value
Musataha agreements > 1% of the consideration paid for the Musataha contract
Other Fees apply:
AED 250 Title Deed issuance fees,
AED 100 Land Map Fees for lands that are not subject to the authority of Dubai Municipality (DM),
AED 325 Land Map Fees for the unified map with DM,
AED 250 for Villas and Units Site Map issuance fees,
AED 10 knowledge fees, AED 10 Innovation fees, applied to each fee
AED 4,000+VAT being RT fees if sales price exceeds or equals AED 500,000 /AED 2,000 +VAT being RT Fees if sale price is less than 500,000.
Wills Registration
Registration Fees- 0.125%of the value of the property which is the subject matter of the Will.
What happened to your property if you die without a Will?
If you are a Muslim and die without a will, Shariah law will generally apply to the distribution of assets as follows:
• Husband-1/4 ( if you have children); 1/2 ( if you don’t have children).
• Wife -1/8 (if you have children); 1/4 ( if you don’t have children).
• Children-Sons inherit 2times shares of daughters.
• Parent-1/6 ( if you have children; 1/3 ( if you don’t have children).
If you are non-Muslim and die without a will, per Federal Law No. 41 of 2022, distribution of assets will apply as follows:
• Spouse-50%.
• Children-50% (split equally).
• If no Children-parents get 50%.
• If no children or parents-siblings.
Wills Registration
Non-Muslim Will Options:
• Dubai International Financial Center (DIFC)
• Dubai Courts
• Abu Dhabi Global Market (ADGM)
• Abu Dhabi Judicial Department (AD Civil Court)
• DIFC Foundation
Non-Muslims may choose to apply the laws of their home county or distribute their assets as they wish.
Muslim Will Options:
• Dubai Courts
• Abu Dhabi Judicial Department (AD Civil Court)
• DIFC Foundation
In Dubai Courts, Muslims must follow Shariah Law.
Abu Dhabi Civil Court now allows Muslims from all countries (except UAE) to register a will per their wishes. All Muslims (including UAE National) are entitled to establish a DIFC Foundation (Trust).
Wills Registration
Eligibility
• Must be 21 years or older.
• Must be of sound mind and able to make independent decisions.
Documents Needed
• Valid passport copy (and EID if applicable).
• Attested marriage certificate (if applicable) and birth certificates for minor children.
• Detailed lists of assets (property, bank accounts, investments, etc…)
• Information about beneficiaries (names, relationship and ID if required)
• A draft of the will prepared in compliance with UAE regulations
A TIP TO YOUR CLIENTS
Suggest that they hire a lawyer to draft their will and register it with whatever court they choose.
Jasim has two sons and 1 daughter, he passed away leaving land of area 12,000 sqm as inheritance, if the inheritance argument mentioned that heirs distribution is 1 share for daughter and 2 shares for each son, what would be each son inherited area in sqm registered in the title deed?
a. 9,600 sqm
b. 2,400 sqm
c. 4,800 sqm
Table of Fees for Registration of Real Property Dispositions and Fees for Services Provided by Dubai Land Department
https://dubailand.gov.ae/en/about-dubai-land- department/rules-regulations/#/20549
Real Estate Legislation 25 September, 2020 / 15 MB / PDF
Focus on Pages 48-51
What is Dubai Land registration fee when selling warehouse of 1,500 sqm base land area?
a. AED 60
b. AED 6,000
c. AED 15,000
What is Dubai Land Department total fee for issuing site map for compound of 15 villas?
a. AED 5,555
b. AED 3,750
c. AED 1,500
What is Dubai Land Department fee for issuing sitemap for each land?
a. AED 100
b. AED 250
c. AED 370
d. AED 500
What are the registration fees charged by Dubai Land Department for the valuation of empty land?
a. AED 6,000
b. AED 4,000
c. AED 2,000
What are the registration fees charged by DLD for a tenancy contract that has a duration of more than 10 years?
a. AED 220
b. AED 300
c. 4% of the total value of the leasehold contract