Gifting A Property
Dubai Land Department offers reduced transfer fees for certain types of property gifts. The key point here is that gifts to spouses and immediate family members attract a reduced transfer fee of 0.125% of the deemed value of the property. Whereas gifts to any other person do not qualify for the reduced fee and therefore attract the standard 4% transfer fee.
This option to add and/or remove someone from the title deed has a restriction. Gifting Property (Donor) and Receiving (Beneficiary), whether in partial or as a whole, are only permitted between first-degree relatives only, which, as per UAE law, includes only Spouses (legally married Husband & Wife) and Parent-Child Relationships. The conditions below are to be met:
- Donor & Beneficiary’s Confirmation: The transfer at the DLD & Trustee Office.
- Legal Documentation: Proof of relationship (such as a marriage or birth certificate) is required to validate the gift transfer. If the certificates are issued outside the UAE, they must be fully attested and then translated into Arabic.
- Obtaining a No Objection Certificate (NOC): This same rule as pointed out above is applied when gifting properties too.
- Transfer Fees: Unlike a standard sale and purchase, gifting has lower DLD fees (0.125% of the property value); however, administrative charges and Trustee fee charges still apply.
If you’re looking to modify the ownership of a property by adding or removing someone from the title deed, specific rules apply:
- Between first-degree relatives: Adding or removing a name in the title deed means that the Donor’s all or partial shares of the property will be gifted to the Beneficiary.
- Between seller & buyer: Adding or removing a name in the title deed means that the Seller is selling all or part of his/her shares of the property to the Buyer through a formal and legal sale transaction.
Selling - Buying A Property
This type of transfer of ownership from a seller to a buyer includes the following steps:
- Signing the Sale & Purchase Agreement (SPA): A Memorandum of Understanding (MOU) is signed between both parties, outlining the terms of the sale.
- Obtaining a No Objection Certificate (NOC): The developer’s NOC is a must as this confirms that there are no outstanding liabilities and/or service charges on the property. If there is a property facilities management, securing their NOC is required too.
- Payment and Transfer: The buyer has to settle the sale proceeds to the seller, as agreed upon on the signed SPA. Depending on both parties’ agreement, it can be settled via the below options:
- Manager’s cheque: AED-only transactions via local UAE banks. Both parties must have UAE bank accounts.
- Bank transfer: Allows international currency settlements (USD, GBP, etc.) if both parties agree. A notarized Acknowledgement Deed/Iqrar is required.
- Escrow Service: A third party temporarily holds and releases funds once all conditions are met. This is considered the most secure option and is subject to Anti-Money Laundering (AML) Compliance.
- Transfer Fees: Dubai Land charges a standard transfer fee (4% of the property value), along with other administrative charges and Trustee fee charges.
What is Ejari?
Ejari, the Arabic word for “my rent,” is Dubai’s official tenancy contract registration system. Operated by the Real Estate Regulatory Authority (RERA), it provides legal recognition to rental agreements and protects the rights of tenants and landlords under Dubai’s rental laws.
When to cancel Ejari
Ejari cancellation is necessary when a tenancy contract is terminated. Examples of this include a tenant moving out or a lease not being renewed. Ensuring timely cancellation prevents future disputes and financial liabilities.