|  | Khalifa revises property ownership lawFeb 11, 2007 - 03:37 - Abu Dhabi, Feb.11th, 2007 (WAM)--In his capacity as Ruler of Abu Dhabi emirate, President H.H. Sheikh Khalifa bin Zayed Al Nahyan has issued law No. 2 for 2007 revising some provisions of law No. 19 for 2005 on property ownership.
The new legislation reads that upon the approval of the Executive Council in Abu Dhabi, article 1 of law No. 19 for 2005 shall be revised as follows: "The definition, disposition, as stated in the above-mentioned article shall be amended by omitting the phrase that reads: "According to the provisions of the civil transactions law." Also, the definition, citizen, referred to in the foregoing article of the law, shall be amended to read: "Citizens, and those in their definition, are any natural person holding, as per the prevalent laws, the nationality of the United Arab Emirates, companies and establishments wholly owned by them, the Government of the UAE and governments of other emirates as well as councils wholly owned by them.
Articles 3,4,6,7 and 12 of law No. 19 for 2005 shall be replaced by the following articles: Article (3)- Property ownership is exclusively prerogative of citizens and those in their definition and of persons and parties that shall be determined by a decision from the Executive Council.
GCC citizens and legal personalities wholly owned by them may own properties, provided that the property should be located within the precinct of investment areas. However, they shall have the right to dispose and arrange any original or collateral right over any of those properties.
The executive regulations shall define terms and conditions as well as tenures of surface contracts for properties lying outside investment areas.
Article (4)-Non-UAE nationals, natural or legal persons, shall have the right to own sub-surface storeys in investment areas.
Executive regulations or decisions by the Executive Council shall determine the purview, terms and conditions of the ownership.
They shall also have the right to benefit from the use of the surface through a property located inside investment areas.
This shall be done by virtue of long-term contract of 99 years or by virtue of long-term surface leasing contract of 50 years renewable for same period by mutual consent of the two sides.
The Executive Council shall issue a decree on the bye-laws regarding investment areas and means of providing services in a way that would not contravene this new law.
Those with the right to benefit from the property or the surface for a period of over 10 years, without the permission of the landlord, may do as they wish with it, including to mortgage it, but the owner of the property can not mortgage it without the permission of the lessee of the property or the surface.
In both cases, the two parties may agree on otherwise.
The bye-laws shall stipulate the conditions, rules and period of the contract agreements for the use of the property or surface located inside and outside the investment areas.
Article 6 of the law says that property ownership or any material rights culminating from those rights shall not be transfered, be that between the two contracting parties or a third party.
This can be done only through proper registration in the register stipulated by the Law no. 3 of 2005, which shall be binding and shall serve as a decisive proof of ownership of property or material right that culminated from that property and the dividend of long-term rent.
Article 7 of the law says a property or the ususfract of it shall be registered under the names of the heirs, after the latter's submission of legal documents proving their right of inheritance of the property, the property's benefactor or the owner of the right of the surface.
If it was later found that the registered property registered under the name of individuals or institutions - is to be inherited by heirs, among whom is a non-UAE national, any of the other heirs or all of them may buy that share of the property at the nominal value. If they fail to do so amicably, they may resort to the law court to get a court order to sell the share of the disqualified heir or to sell the full property and distribute the proceed among themselves.
According to Article 12 of the new law, all dispositions on property in the Emirate of Abu Dhabi, including the rules and regulations governing the leasing of surface, shall be liable to this law and all other decisions related to its implementation.
The registration procedures and the use of the property shall be in accordance with Law no. 3 of 2005 and its bye-laws.
Article 3 of the new law abrogates all other laws that contravene it. The new law, which takes effect from the date of its issuance, is to be published in the official gazette, according to Article4.
WAM/SA 15 12 CCCCQQE |
|
|  |
