The Art of Property Gifting in Dubai Posted on October 27, 2023 by badmin In the Emirate of Dubai, first-degree relatives, such as parents, children, and husbands and wives, can transfer property among themselves, constituting a gift transfer. Recent rule changes at the Land Department, however, have prohibited property transfers between siblings. In cases where a property transfer qualifies as a gift transfer, the standard 4% transfer fee, typically paid to the Land Department during the property transfer, is not applicable. Instead, a nominal transfer fee of 0.125% is due at the time of the transfer. This reduced fee significantly simplifies the cost-effective transfer of property between first-degree relatives, eliminating the need to consider substantial cost implications. The process of gifting a property in the Emirate of Dubai is as follows: The owner must pay AED 4,020 to obtain an evaluation report on the property’s price from the land department. The owner and the donee must obtain a No Objection Certificate (NOC) from the property’s developer. Both parties must prove their first-degree relationship by providing an official document issued in their respective home countries. For example, if the owner is the father or mother of the donee, they must provide a birth certificate as evidence of their relationship. This document must be legalised and notarized in their home country and then submitted to the Ministry of Foreign Affairs in the UAE. In addition, the document should be translated into Arabic and receive a stamp of approval from the Ministry of Justice. Once the original documents are in hand, you can complete the property transfer by visiting the Trustee offices. The cost of a gift transfer of property in the Emirate of Dubai includes the following: The minimum gift transfer fee payable to the land department is AED 2000. However, if the property’s value exceeds AED 500,000, the transfer fee payable to the land department is 0.125% of the property’s overall value, based on the evaluation certificate issued by the land department. A fee of AED 580 for the name title deed. A fee of either AED 2,000 or AED 4,000, depending on the property’s evaluation, payable to the trustee offices. Once you have submitted the required documents and paid the associated costs at the trustee office, the trustee office will facilitate the property transfer, resulting in the issuance of a new title deed in the name of the donee. Once the Land Department issues the new title deed, the donee will officially assume ownership of the property. Do I need a Power of Attorney for a gift transfer? A Power of Attorney is not necessary for a gift transfer in the Emirate of Dubai if both the owner and the donee are present during the transfer. However, our partner, Vision Conveyancing, is pleased to offer its services as your Power of Attorney through a special POA to facilitate the entire gift transfer process in the name of the donee. They provide a comprehensive end-to-end service for gift transfers, ensuring a swift and efficient process. VC is committed to delivering a streamlined and stress-free transaction experience for their clients, starting from the initial contract signing and concluding with the property ownership transfer. If you have inquiries, you can reach out to them at info@visionconveyancing.com. Property gifting in Dubai serves as a legal and efficient means of transferring ownership while upholding the city’s tradition of generosity and openness. Dubai, as a thriving global metropolis, continuously draws investors and residents worldwide, making property gifting an exceptional way to embrace the Dubai lifestyle and partake in its prosperity. When contemplating property gifting, it’s crucial to seek guidance from legal experts and real estate professionals. In Dubai, the process of property gifting embodies the principle of “giving is receiving,” enriching both the giver and the recipient.
Dubai Landlords: What You Need to Know Posted on October 22, 2023 by badmin Landlords in Dubai have various rights, including the right to receive rent on time, the ability to evict tenants for non-payment of rent, the option to terminate the contract under specific circumstances, and the authority to access the property for inspections and repairs. Furthermore, tenants must compensate landlords for any damage caused to the property. Dubai has established itself as a global hub for real estate investment and development over the last few decades. The city has witnessed a significant increase in the number of properties, both residential and commercial, resulting in a higher number of landlords. As a landlord in Dubai, it’s crucial to be well-informed about your rights and responsibilities to ensure the proper maintenance of your property and the satisfaction of your tenants. The Dubai Rental Law No. 33 of 2020, which replaced the previous rental law (Dubai Rental Law No. 26 of 2007), came into effect on March 9, 2020. The new tenancy law in Dubai aims to improve the rental market through several changes. These changes require all rental contracts to be registered with the Rental Good Conduct Certificate (RGCC) system, establish rent increase caps for existing tenants, introduce measures to protect tenants’ rights, and create a Rental Dispute Settlement Circuit (RDSC) within the Dubai Courts. The new landlord-tenant law in Dubai has the goal of providing greater transparency, accountability, and protection for both landlords and tenants. What Is a Tenant and Landlord Relationship? In the tenant-landlord relationship, the landlord holds the ownership rights to the property, and the tenant obtains the right to use the property by paying the rental fee for the unit. On top of that, the tenant has the responsibility of maintaining the property, while the landlord is obligated to carry out maintenance as outlined in the agreement. Maintaining a positive relationship is essential for both parties, as it fosters mutual trust, which becomes particularly important in case any issues arise. What is the maintenance law in Dubai? In accordance with Article 16 of Law 26 of 2007, unless otherwise agreed, the landlord is responsible for doing all maintenance on the property. However, the majority of lease agreements in Dubai often state that the tenant is responsible for minor upkeep while the landlord is responsible for any substantial repair. Can Landlord Increase Rent in Dubai After 1 Year? Yes, they can as long as it’s the time for renewal; otherwise according to the tenant rights in Dubai, they can’t increase the rent during the lease period. What Is the Rent Increase Notice Period in Dubai? The landlord must notify the tenant within 90 days before the expiration of the contract. This is the minimum notice period, according to the Dubai Tenancy Law, unless the two parties agree on other terms. Things to check in a rent increase: Whether your proposed rent increase is within the bounds of RERA’s rental increase calculator If your community is not listed in the rental increase calculator, then the regular rules of rental increases in Dubai do not apply. In this instance, you and your tenant will have to agree on what you feel is a fair price. If your community is listed in the rental increase calculator, but you believe one or both of the above-mentioned requirements have not been met, your tenant can contest your notice. When Is the Rental Increase by the Landlord Permitted? Under the Dubai Rental Price Index, landlords may adhere to the following framework for rental increases: No increase is permitted when the rent increase calculator shows the current rent paid is within the stipulated range A 5% rent increase is permitted when the rent falls between 11–20% less than the average for the location A 10% rent increase is permitted when the rent falls between 21–30% less than the average for the location A 15% rent increase is permitted when the rent falls between 31–40% less than the average for the location; A 20% rent increase is permitted when the rent is less than 40% of the average for the location. Is the Landlord Allowed to Enter the Property in the Tenant’s Absence? No, the landlord is not allowed to enter the unit during the renter’s absence or without their permission unless they agree on this and it’s included in the contract. This is according to tenant rights in Dubai. Moreover, if the landlord wants to sell the property, they should ask for the tenant’s consent to be able to show the property to potential buyers. When the tenant permits viewings, the landlord must provide at least 24 hours’ notice and must be present at the time of viewing. Can the landlord evict a tenant prior to the end of a tenancy agreement? Article 25 of Law No. 26 of 2007 states that there are only a few very specific reasons why a landlord can evict a tenant prior to the end of a tenancy agreement. These include: The tenant fails to pay rent within 3 days of being served a written notice from the landlord The tenant subleases the property without the landlord’s approval The tenant uses the property for any other purpose than what it was leased for The property is used for immoral or illegal activities The tenant causes damage or makes unsafe changes to the property The tenant fails to comply with the terms of the tenancy or the law If demolition of the property is required by the government for urban development Unless one of the above conditions is met, you cannot be evicted during the tenancy. The landlord can seek to evict the tenant for one of the following reasons: The landlord wishes to reconstruct or demolish the property Major maintenance or renovation is required, which cannot be done whilst the tenant is living there The landlord wants to sell the property The landlord wants to either live in the property or have one of their first-degree relatives live there But, in all of the above examples, 12 months of written notice must be provided. Here are some top tips for landlords in Dubai: 1. Hiring a competent property manager is considered essential by experienced landlords to maximise the value of their rental properties. This approach not only helps in avoiding all the headaches associated with vetting tenants, collecting rent, handling complaints, and addressing maintenance and repair requests, 2. Maintain a Respectful Relationship with Tenants. If you opt to lease your property without a property manager, make an effort to maintain a positive relationship with your tenant. When mutual respect exists, your tenant is more likely to take better care of your property, which ultimately benefits your long-term investment. 3. Familiarise yourself with the Law. Before considering rent increases or wanting to evict a problematic tenant, take a moment. Landlords have both rights and responsibilities to adhere to under Dubai law. As a landlord, comprehending your obligations will assist in safeguarding yourself and your rental property. 4. Ensure clarity in the contract. Make sure the tenancy contract is clear. For instance, it should outline the maintenance and repair requests for which you are accountable. If you believe the tenant is requesting maintenance beyond your obligations, direct them back to the contract. 5. Initiate a Rental Dispute Case if necessary. If you have explored all available options, including discussions with your tenant to resolve any arising issues, contemplate initiating a case. The Rental Dispute Centre serves both landlords and tenants with the ultimate aim of reaching a resolution for both parties. Various laws and regulations in Dubai, including Dubai tenancy law, protect the rights of landlords. As a landlord, it is essential to comprehend your rights and obligations to establish a smooth and lawful tenancy agreement with your tenants. Among the significant rights of landlords in the UAE are the right to evict tenants for breaching the contract, the right to receive rent promptly, and the right to terminate a tenancy agreement for valid reasons.
