Department of Municipal Affairs and Al Tamimi & Company host a seminar on the Abu Dhabi Property Laws

Entitled "The Building Blocks - A Seminar on Abu Dhabi Property Laws", the seminar aimed to analyze the current property laws in the Emirate and the measures required to enhance the effectiveness of these laws.

It was attended by His Excellency Ahmed Mohammad Shareef, Undersecretary of the DMA, His Excellency Engineer Hamoud Humaid Al Mansouri, General Manager of the Western Region Municipality, His Excellency Mr. Hamed Abed Al Sherani, CEO of Support Services sector, His Excellency Dr. Abdullah Hassan Ghareb, CEO of Land and Real Estate sector. Hussam Hourani, Partner, Al Tamimi & Company and Mohammed Kamal, senior property lawyer with Al Tamimi & Company also attended the event in addition to various governmental institutions, banks and financial institutions, real estate brokers, developers, investors and property consultants.

Further enhancement to Abu Dhabi's current property laws in relation to the registration of property rights and ownership rights will have a positive impact on the real estate market in the Emirate and attract more investors, according to Al Tamimi & Company Advocates and Legal Consultants, one of the leading law firms in the Arabian Gulf region.

"Abu Dhabi is currently witnessing a construction boom which is predicted to continue into the next 15 years. The evidence of this can been seen in the recent launch of numerous development projects such as 'Reem Island', 'Al Raha Beach' and 'Saadiyat Island'," said His Excellency Ahmed Mohammad Shareef Undersecretary of the DMA. "An essential element to the success of these mixed-use projects, however, is dependant on having the right regulatory framework that could provide legal protection and clarity that property owners and investors require."

"In this seminar we succeeded in gathering constructive and valuable feedback with the assistance of Al Tamimi & Company on the role we must play in developing an effective land registration system in Abu Dhabi based on best practices in other international jurisdictions. We look forward to working with Al Tamimi & Company to achieve our objective of attracting further investment into the growing real estate market in Abu Dhabi,"

he added.

In 2005, two laws were issued in relation to the ownership and registration of real property rights in Abu Dhabi. Law No. 3 of 2005 concerned the registration of real property in Abu Dhabi. This law established the Land Department which would serve the function of registering real property rights, issuing certificates and title deeds amongst other things, while Law No. 19 of 2005 confirmed the ownership rights of UAE, GCC and foreign nationals in Abu Dhabi.

Although the Law No. 19 granted non-GCC foreign nationals the right to own units or floors in buildings (commonly referred to as 'surface rights') located within designated areas known as 'Investment Zones', the law does not give them the rights to the underlying land upon which the building or apartment is located.

"According to Law No. 19, non-GCC, foreign nationals can acquire a right of usufruct - for a maximum term of 99 years which is similar to a lease, and the right of musataha - for a maximum term of 50 years, which is a right to build - in respect of land or units," explained Mohammed Kamal, property lawyer with Al Tamimi & Company and the main speaker at the seminar.

"There is a lack of understanding in the market place in Abu Dhabi, however, on the concepts of usufruct, musataha and surface rights. This lack of understanding has addressed the need to clarify such concepts through further legislation including a Strata Law. We believe that such measures will enhance the current property laws and practices in Abu Dhabi and attract more foreign developers and investors."

A Strata Law is expected to be implemented in Dubai soon and will define the rights of owners of units and common property in multi-owned buildings and communities. While the Escrow Laws came into effect in Dubai last June, designed to safeguard purchaser's monies for off-plan sales of units i.e. buildings that are yet to be constructed.

Al Tamimi & Company also urged the need to regulate all real estate matters by establishing a regulatory body, which could operate in a similar way to RERA (Real Estate Regulatory Agency in Dubai) in regulating brokers and developers with specific laws and regulations. "There is also an urgent need to implement a land registration system in Abu Dhabi similar to other established jurisdictions in the world. In addition to adopting standard format documentation for the transfer and registration of real property rights, title deeds, leases and sale and purchase agreements to ensure there is consistency in the real estate market" added Mohammed Kamal.

According to the DMA, Abu Dhabi is expecting to issue new "implementation regulations" which will provide guidance on several aspects of the property laws including the establishment and management of common ownership associations for multi-owned buildings and rules relating to the ownership, management, maintenance and operation of common property in such multi-owned buildings. Currently, Al Tamimi & Company are assisting the DMA on the drafting and reviewing of these regulations and the implementation of further measures to develop an effective land registration system.

The seminar provided valuable and constructive feedback for the DMA and Al Tamimi & Company. The DMA intend to have similar seminars and workshops in the coming months to assist them in their mandate to pave the way for the future development and growth in the Abu Dhabi real estate market.