Beyond standard property transactions, Dubai’s real estate market also accommodates special cases such as property gifting and minors’ rights in real estate ownership.
While DLD allows property gifting between close family members at a highly reduced transfer fee, DIFC does not offer this benefit. Similarly, rules governing minors' property rights differ significantly between the two jurisdictions.
This article examines these critical differences, helping property owners and investors make informed decisions.
1. Property Gifting in DLD vs. DIFC
Property Gifting in DLD
DLD permits property owners to gift their property to spouses, parents, or children at a significantly reduced transfer fee of just 0.125% of the property’s value, compared to the standard 4% transfer fee on regular sales.
Property Gifting in DIFC
DIFC does not permit property gifting. If an owner wishes to transfer property to a spouse or family member, the standard 5% transfer fee applies, making it identical to a standard sale transaction.
2. Minors’ Rights in Buying and Selling Property
Legal Definition of a Minor
- DLD: A minor is any person under the age of 21.
- DIFC: A minor is any person under the age of 18.
Buying & Selling Property as a Minor in DLD
Before transferring property involving a minor (under 21 years old), the following documents are required:
- Title Deed Copy
- Passport & Emirates ID (for both the minor & legal guardian)
- Attested Birth Certificate (verified by the Emirates Consulate & Ministry of Foreign Affairs)
- Legal Guardian Documentation (father by default; if deceased, then the mother by court order)
- Court Consent Letter: Required for selling property owned fully or partially by a minor.
If the Minor is the Buyer
- The legal guardian must verify and submit documents to the Trustee's Office before the purchase is approved.
- Payment details and the transfer appointment are handled by a Sales Progression Officer.
If the Minor is the Seller
- A court order must approve the sale, and the sale proceeds are deposited with Dubai Courts until the minor reaches 21.
- If immediate access to funds is required, the guardian must submit proof of necessity to the Minor Committee for review.
3. Buying & Selling Property as a Minor in DIFC
Buying Property as a Minor
- A caveat (legal restriction) must be registered, confirming the minor's beneficial ownership.
- The minor’s guardian must provide a court order or guardianship agreement proving legal authority to act on behalf of the minor.
- The guardian declaration (DIFC system-generated) must be signed when executing the Sale & Purchase Agreement (SPA).
Selling Property as a Minor
- A minor cannot sell property in DIFC.
- A court order is required, specifying the recipient of sale proceeds.
- Proceeds are usually deposited in an account under the minor’s name, managed by the guardian until they turn 18.
For a detailed breakdown of DIFC’s minor-related property procedures, refer to the DIFC Handbook.
While DLD allows property gifting at a reduced fee, DIFC treats such transfers as standard sales. Additionally, the legal age for minors and their ability to engage in property transactions vary significantly.
For expert legal guidance on property transactions involving gifting or minors, contact Fam Conveyancingtoday.
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