Question: Is it legal to co-own property with a friend in Dubai?
Answer: Yes, co-ownership is permissible under Dubai law, but there are specific legal requirements and implications to consider.
Co-ownership of property in Dubai is governed by Law No. (6) of 2019, which lays out the regulations for jointly owned real property. A property owned by two or more people cannot be subdivided unless approved by the Dubai Land Department (DLD) and the necessary licenses are obtained. This is in line with Article 13 of the law, which ensures that subdivisions can only occur under certain conditions.
Additionally, co-owners are granted a pre-emption right, meaning if one owner wishes to sell their share to a non-owner, the other co-owners have the first option to buy the share. This right is proportional to their ownership stake. However, this pre-emption right does not apply if the share is sold to immediate family members, including ascendants, descendants, or in-laws up to certain degrees, as specified in Article 14.
Further, when a co-owned property is subdivided, the co-owners must pay a registration fee to the DLD, calculated based on their ownership shares. This requirement is set out in Executive Council Resolution No. (30) of 2013.
While co-ownership is legally feasible, it is advisable for those entering into such an arrangement to establish a clear co-ownership agreement. This agreement should outline each party’s ownership percentage, financial responsibilities, and procedures for any future sales or disputes, ensuring smooth management of the property and adherence to legal protocols.
News Source: Khaleej Times
