Decree No. (23) of 2020
Regulating the
Sale by Heirs of Residential Property in the Emirate of Dubai[1]
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We, Mohammed bin Rashid Al Maktoum, Ruler of Dubai,
After perusal
of:
Federal Law No. (5) of 1985 Issuing the
Civil Code of the United Arab Emirates and its amendments;
Federal Law No. (11) of 1992 Issuing the
Civil Procedure Code, its Regulatory Bylaw, and its amendments;
Law No. (7) of 2006 Concerning Real
Property Registration in the Emirate of Dubai and its amendments;
Law No. (9) of 2007 Establishing the
Awqaf and Minors Affairs Foundation;
Law No. (4) of 2011 Establishing the
Mohammed bin Rashid Housing Establishment and its Implementing Bylaw;
Law No. (4) of 2013 Concerning Notaries
Public in the Emirate of Dubai;
Law No. (7) of 2013 Concerning the Land
Department;
Law No. (8) of 2015 Concerning the
Community Development Authority in Dubai;
Law No. (13) of 2016 Concerning the Judicial
Authorities in the Emirate of Dubai;
Decree No. (31) of 2016 Concerning the
Mortgage of Granted Land in the Emirate of Dubai;
The Instructions Issued on 20 September
1994 Concerning Land Granted by the Government to UAE Nationals in the Emirate
of Dubai;
The Order Issued on 20 September 1994
Prohibiting Notaries Public from Attesting Contracts, Agreements, or Documents
Related to the Disposition of Granted Land; and
The Order Issued on 12 July 2004
Concerning Residential Land Granted to UAE Nationals in the Emirate of Dubai,
Do hereby
issue this Decree.
The following words and expressions,
wherever mentioned in this Decree, will have the meaning indicated opposite
each of them unless the context implies otherwise:
|
Emirate: |
The Emirate of Dubai. |
|
Government: |
The Government of Dubai. |
|
DLD: |
The Land Department. |
|
MBRHE: |
The Mohammed bin Rashid Housing
Establishment. |
|
Director General: |
The director general of the DLD. |
|
Residential Real Property: |
A vacant land plot, or a dwelling
constructed in the Emirate on a granted or freehold land plot, which is
co-owned in undivided shares by heirs to whom a certificate of freehold title
is issued by the DLD, whether it was originally granted by the Government to
their legator or was owned by him through any other means of acquisition of
ownership. |
|
Tribunal: |
A special tribunal formed to consider
and determine the applications, claims, disputes, and appeals filed with it
in respect of the sale of Residential Real Property. |
a.
The provisions of this Decree apply to Residential Real Property
which any of the heirs wishes to sell, in accordance with the provisions,
procedures, rules, and requirements stipulated in this Decree.
b.
The provisions of this Decree do not apply to move-in ready
dwellings granted by the MBRHE and governed by the above-mentioned Law No. (4)
of 2011 and its Implementing Bylaw.
a.
An heir, or his legal representative, may submit to the DLD an
application for approval of Residential Real Property sale, in accordance with
the procedures and requirements adopted by the DLD in this respect.
b.
The DLD will conduct a case study in respect of the application
submitted to it pursuant to paragraph (a) of this Article, in coordination with
the concerned Government entities in the Emirate, particularly the MBRHE, the
Community Development Authority in Dubai, and the Awqaf and Minors Affairs
Foundation. When conducting the study, the following must be
verified:
1.
that one of the following cases applies to all the heirs:
a.
they have another dwelling or a land plot, whether granted or
owned, that is allocated for constructing a dwelling;
b.
the Residential Real Property does not meet their needs for any
reason whatsoever, including that the area of the Residential Real Property is
disproportionate to the number of heirs; or
c.
any other cases accepted by the DLD, in coordination with the
concerned Government entities in the Emirate.
2.
that there are no legal impediments or third-party rights that
preclude the sale of the Residential Real Property; and
3.
that none of the heirs will suffer any harm as a result of the sale
of the Residential Real Property, whether it is granted or owned,
especially the elderly and minors; unmarried, divorced, and widowed female
heirs; and persons with disabilities. This includes the unavailability of an
alternative dwelling that is suitable in terms of value, location, and area.
c.
The DLD will, upon verifying the validity of the application and
the authenticity of submitted supporting documents, and upon completing the case
study referred to in paragraph (b) of this Article, notify the rest of the
heirs, using the notification methods specified by the
relevant resolution of the Director General, that one of them has applied
for sale of the Residential Real Property. The heirs must either consent to or
decline the application for sale of the Residential Real Property within thirty
(30) days from receiving the notification.
a. Where all heirs
consent to the sale of the Residential Real Property, the DLD will take the action
required for sale of the Residential Real Property, either by direct sale to a
buyer at the market value estimated by the DLD; or by auction, in accordance with
the rules and procedures stipulated in the above-mentioned Federal Law No. (11)
of 1992 and its Regulatory Bylaw, and
in the
applicable legislation in force.
b.
Subject to the provisions of paragraph (b) of Article (3) of this
Decree, the DLD must verify the satisfaction of the following requirements before taking the necessary
action to sell the Residential Real Property:
1.
The buyer must be a UAE National, where the Residential Real
Property exists in other than the areas designated for ownership by non-UAE nationals
of Real Property in the Emirate under the above-mentioned Law No. (7) of 2006.
2.
All payable or deferred amounts owed to the concerned Government
entities in respect of the Residential Real Property, if any, must be paid. The
DLD may approve an application for deferral of the payment of
these amounts until after the sale of the Residential Real Property, provided
that the heir who
has submitted the sale application provides valid reasons for the deferral. In this
case, the payable or deferred amounts owed to the concerned Government entities
will be settled out of the Residential Real Property sale
proceeds prior to distribution of the same among the heirs.
3.
The buyer must agree to deposit the Residential Real Property sale
proceeds into the DLD account to enable the DLD to distribute them among the heirs
based on their respective shares in the Residential Real Property.
4.
All other conditions prescribed by the DLD, in coordination with
the concerned Government entities, pursuant the relevant resolutions issued by
the Director General, must be met.
a.
If it is established to the satisfaction of the DLD, through the
case study
conducted in accordance with the provision of paragraph (b) of Article (3) of
this Decree, that any of the heirs has no dwelling other than the Residential
Real Property requested to be sold; or that any of the heirs will suffer harm
as a result of the sale of the Residential Real Property, especially the elderly and
minors; unmarried, divorced, or widowed female heirs; and persons with disabilities,
the DLD will, in coordination with the MBRHE, provide these heirs with
alternative housing solutions, in accordance with the relevant procedures,
rules, and requirements prescribed by the DLD and the MBRHE.
b.
The consideration of an application
for sale of the Residential Real Property will be suspended in the case
referred to in paragraph (a) of this Article until an appropriate alternative
housing solution is provided to the heirs by the MBRHE, or until the lapse of
one (1) Year from the date of submission of the sale application, whichever is
earlier.
c.
Where, after the lapse of the period referred to in paragraph (b)
of this Article, the MBRHE is still unable, for any reason whatsoever, to provide
the affected heirs with an alternative housing solution; and the case study conducted in
accordance with paragraph (b) of Article (3) hereof confirms
that the sale of the Residential Real Property will result in harm to any heir, the consideration
of the application for sale of the Residential Real Property will be suspended.
In this case, the application may be reconsidered only upon the
availability of an alternative housing solution, and the MBRHE must
endeavour to find that solution as soon as possible.
a.
Where the period referred to in paragraph (c) of Article (3) of
this Decree lapses without receiving a response from the heirs to the
notification of the Residential Real Property sale application, after verifying receipt
or knowledge by the heirs of the notification; or where any of the heirs
declines to consent to the Residential Real Property sale application, the DLD
will mediate an amicable settlement among the heirs, where possible, in
accordance with the relevant rules, procedures, and time frames prescribed by
the DLD.
b.
Where all heirs accept the amicable settlement mediated
by the DLD in accordance with the provisions of paragraph (a) of
this Article, the settlement will be documented in a contract executed
by all the heirs or their legal representative(s), and will be attested by the
DLD in accordance with the legislation in force. In this case, the DLD will
proceed with the procedures for sale of the Residential Real
Property, in accordance with the provisions of Article (4) hereof.
c.
Where any of the heirs persists in declining to consent to the
Residential Real Property sale application in spite of the DLD amicable
settlement endeavours undertaken in accordance with the provisions of paragraph
(a) of this Article, the DLD will issue an official document in favour of the
applicant heir stating that an amicable settlement among the heirs cannot be
reached, in order to enable that applicant to file a claim before the Tribunal for the sale of the
Residential Real Property.
Any affected party may file an appeal with the Tribunal
against any decisions issued, or actions taken, by the DLD
or the MBRHE under this Decree. The appeal must be filed within ten
(10) working
days from the date on which he becomes aware of the contested decision or action. The appeal will be
considered and determined by the Tribunal in accordance with the relevant
procedures, time frames, rules, and conditions prescribed by the Tribunal.
a.
The Tribunal will be formed pursuant to a resolution of the Ruler;
and will be comprised of experts and specialists in the legal, financial,
and real property fields. The Tribunal will consider all applications,
claims, or disputes that arise among heirs in respect of the
sale of Residential Real Property in accordance with the provisions of
this Decree, including appeals against the decisions issued, or actions taken,
by the DLD or the MBRHE under this Decree.
b.
The Tribunal will have exclusive jurisdiction, within the Emirate,
to consider and determine the applications, claims, disputes, and appeals
referred to in paragraph (a) of this Article. The Tribunal formation resolution
must provide for the method of
selecting its members; its functions and powers; and the legal effect,
and method of execution, of its judgements; and
will include any other relevant provisions.
a.
The Tribunal will deliver a judgement to sell the Residential Real
Property by auction, where it cannot be partitioned in kind or where the
in-kind partition would result in any prejudice or significant decrease in the
value of the Residential Real Property, in which case the plaintiff must
litigate against all the heirs. Where the Tribunal decides to sell the
Residential Real Property by auction, it may restrict the auction to the heirs
if they request this unanimously.
b.
In issuing a decision to sell the Residential Real Property, in
accordance with the provisions of this Article, the Tribunal must
ensure that
none of the heirs will suffer any harm as a result of the sale, especially the
elderly and minors; unmarried, divorced, and widowed female heirs; and persons
with disabilities.
c.
The Tribunal may not admit any application or claim in respect of
the sale of Residential Real Property in accordance with the provisions of this
Decree, unless the applicant or plaintiff submits the official document
referred to in paragraph (c) of Article (6) of this Decree.
d.
The Tribunal must deposit the Residential Real Property sale
proceeds, in accordance with the provisions of this Article, into the DLD account.
e.
In any event, the Tribunal must, in issuing its decision to sell
the Residential Real Property, take into consideration the case
study
conducted in accordance with the provisions of paragraph (b) of
Article (3) of this Decree, and comply with the rules and procedures stipulated
in the above-mentioned Federal Law No. (11) of 1992 and its Regulatory Bylaw.
All Concerned Entities in the Emirate
must, each within its own jurisdiction, provide the necessary
support to the DLD to enable it to perform the duties assigned to it under this
Decree, and take all necessary actions to implement the resolutions issued in
implementation hereof.
Any disposition undertaken in breach of
the provisions of this Decree will be void and may not be registered or have
any legal effect as against the Government, the DLD, or third
parties.
The provisions of the above-mentioned
Federal Law No. (5) of 1985 and its amendments, relating to property
co-owned in undivided shares, will apply to all matters not provided for in this Decree.
The Director General will issue the
resolutions required for the implementation of this Decree. These resolutions
will be published in the Official Gazette.
Any provision in any other legislation
will be repealed to the extent that it contradicts the provisions of this
Decree.
This Decree will be published in the
Official Gazette and will come into force on the day on which it is published.
Mohammed bin Rashid
Al Maktoum
Ruler of Dubai
Issued in Dubai on 13
August 2020
Corresponding to
23 Thu al-Hijjah 1441 A.H.
©2021 The Supreme Legislation
Committee in the Emirate of Dubai
[1]Every effort has
been made to produce an accurate and complete English version of this
legislation. However, for the purpose of its interpretation and application,
reference must be made to the original Arabic text. In case of conflict, the
Arabic text will prevail.