The Dubai Property Law

In the backdrop of sale and purchase of so called ‘affordable’ properties in the ‘wonder’ Dubai being announced on every other day, it will be an fruitful exercise for the potential buyer to be aware of certain do’s and don’ts while investing in this cherished venture.
According to the Dubai Property Law (Law No. 7 of 2006; effective from April 1st, 2006), the Lands Department is the only authorized body to register Real Properties Rights in Dubai.
Real Properties Rights capable of registration includes rights of
Freehold Ownership
Rights of Usufruct i.e. long leases up to 99 years
Rights of Musataha
Collateral rights such as easements, restrictions and mortgages over real property.
Right to Purchase
UAE and GCC nationals have the unbridled right to own any property interest in Dubai and register such rights at the Lands Department (Article 4 of the Dubai Property Law). The law also extends to companies wholly owned by such nationals.
For nationalities other than UAE and GCC, are granted the right to hold a freehold interest, right of usufruct i.e. a long lease of up to 99 years in ‘designated areas of Dubai’ as authorized and approved by the Ruler.
Non-Designated Areas
Long leased properties in areas which are not covered under the ambit of the ‘designated areas’ are not covered by the Dubai Property Law. But at the same time such a property can not be held as illegal.
Such unregistered leases are treated as follows:
Unregistered leases remain personal rights
Unregistered leases are still capable of being inherited
In the event of any dispute arising between a landlord and a tenant of an unregistered long lease, the Rents Committee shall take care of the adjudication.
Additional Information
Article 26(1): “Any agreement or disposal made in violation to the provisions of this law or with the intent to circumvent its provisions shall be null and void”.
Article 26(2): gives any interested third party which here is the Lands Department and Public Prosecution, the right to request the court to declare such a transaction void. This is directed at so called ‘sham arrangements’.
These provisions are applicable to those agreements that purport to give property ownership rights to someone who is not entitled to own it and is not entitled to register it.
According to articles 5, 22 and 24
A contract or other agreement by which a purchaser acquires the property ownership is not sufficient to prove it. It is mandatory for the purchaser to take the contract to the Lands Department and apply for ownership to be registered in his name. If the application is in order, the Lands Department will register the ownership in the property Register and issue a ‘Title Certificate’.