Guide to Transferring Property Ownership Between Family Members in Dubai

Introduction

Transferring property ownership between family members in Dubai is a common practice for various reasons, including inheritance planning and family wealth management. Understanding the legal requirements and procedures is essential to ensure a smooth and compliant transfer. This guide provides an in-depth look at the process, documentation, and costs involved in transferring property between family members in Dubai.

Legal Framework for Property Transfer

In Dubai, property transfers between family members are governed by the Dubai Land Department (DLD). The process is straightforward but requires adherence to specific legal requirements to ensure the transfer is valid and recognized.

Eligible Family Members

Property can be transferred to first-degree relatives, which includes:

• Parents
• Children
• Spouses

Transfers to siblings, stepchildren, or other relatives are not permitted under the current regulations.

Steps to Transfer Property Ownership

1. Obtain a Title Deed: Ensure that the property has a clear title deed. Off-plan properties cannot be transferred until completion and issuance of the title deed.
2. Valuation of the Property: The property must be valued by the DLD to determine the transfer fee.
3. Prepare Documentation:
   • Proof of relationship (e.g., birth certificate, marriage certificate)
   • Identification documents (passports, Emirates IDs)
   • Property title deed
4. Submit Application: Submit the transfer application along with the required documents to the DLD.
5. Pay Fees: Pay the transfer fee, which is 0.125% of the property value for gifting between family members.
6. Completion of Transfer: Once the DLD processes the application and the fees are paid, a new title deed will be issued in the recipient’s name.

Costs Involved

The primary cost is the DLD transfer fee, which is significantly lower for family transfers at 0.125% of the property value compared to 4% for regular sales. Additional costs may include administrative fees, valuation fees, and legal fees if you choose to hire a professional to assist with the process.

Restrictions to Be Aware Of

• Mortgaged Properties: If the property is mortgaged, approval from the mortgagee bank is required. The mortgage must be settled or transferred to the new owner.
• Double Gifting: Property cannot be gifted more than once to prevent misuse of the family transfer provision.
• Ready Properties Only: Only properties with a clear title deed can be transferred; off-plan properties are not eligible until completion.

Benefits of Transferring Property to Family Members

• Inheritance Planning: Helps in planning the distribution of assets to loved ones.
• Cost-Effective: Lower transfer fees compared to regular property sales.
• Legal Clarity: Ensures clear legal ownership and avoids future disputes.

Conclusion

Transferring property ownership between family members in Dubai is a viable option for managing family wealth and inheritance planning. Understanding the legal requirements, costs, and restrictions can help ensure a smooth and efficient process. Consulting with a legal expert can provide additional guidance and ensure compliance with all regulations.

Call 800 POAAE or +971 55 886 4969 (WhatsApp) or send us an email to contact@poa.ae to get started.