This article is written for the purposes to provide awareness and insight for all property investors and also Agents in Dubai concerning the legal framework and practices governing the purchase and sale of properties for Minors in Dubai.
Who is a Minor?
The term Minor in the law applies to children under the age of 21 years, where the age of 21 is considered the age of adult in UAE. The term Minor may also be applied to someone who has reached the age of adult but lacks capacity, or does not distinguish right from wrong. Hence, the term Minor legally includes any person who has been decided by the judiciary according to evidence that he needs a guardian to carry out the procedures related to Buying, Selling, Power of Attorney and etc practices. In this article we will discuss the laws that govern the procedures for selling or buying properties in Dubai for Minors.
Procedures governing the sale of a Minor’s property
- Property owned fully by a Minor
The process of selling a property fully owned by a Minor takes place through several legal procedures, where the Contract of Sale & Purchase is provided to Dubai Courts by the Minor’s legal guardian to proof the sale of the property. The Court will issue their consent letter/NOC to Dubai Land Department confirming that they have no objection to sell the property owned by the Minor as long as the funds will be in the custody of Dubai Courts.
Hence, the sale transaction will be completed smoothly in the Trustee Offices/Dubai Land Department with the attendance of both parties “Seller’s legal guardian” with Minor’s attested birth certificate and the “Buyer” paying the selling price via manager cheque in the name of Dubai Courts. The Dubai Land Department will issue the new title deed in the name of the Buyer as the new owner in the same transfer date where the cheque is handed over to the Trustee Office.
Now after the transfer date in Dubai Land Department and based on the conviction of both the Court and the Minor Committee; they work to audit and review these transactions after they reach the account of the Court; in the event that it is found that the Minor does not need the money of this property, whether because of the existence of a legal guardian, or the presence of cash in their possession; the funds of the selling price will not be released to the Minor’s legal guardian until the Minor reaches the age of 21 years to receive the money from Dubai Courts accounts. If the Minor’s legal guardian proved to the Court that the money is needed to purchase a new property for the Minor or use it for the Minor’s education expenses and etc then the Court can reconsider to release the funds which will be the sole decision of the Court.
- Property owned partially by a Minor
The process of Selling a property partially owned by a Minor takes place through same legal procedures, where the Contract of Sale & Purchase is provided to Dubai Courts by the Minor’s legal guardian to proof the sale of the Minor’s partial share of the property. The Court will issue their consent letter/NOC to Dubai Land Department confirming that they have no objection to sell the Minor’s partial share of property as long as the funds will be in the custody of Dubai Courts. Hence, the sale transaction will be completed smoothly in the Trustee Offices/Dubai Land Department with the attendance of both parties “Seller’s legal guardian” and the “Buyer” with the selling price in two cheques: one in the name of the Seller and second in the name of Dubai Courts which is the Minor’s share. The Dubai Land Department will issue the new title deed in the name of the Buyer as the new owner in the same transfer date where the cheque is handed over to the Trustee Office.
Procedures governing the Minor’s Purchase of properties
The process of buying property for a Minor takes place through the attendance of the legal guardian in the Trustee Office to sign the Sale and Purchase Contract on behalf of the Minor, attend in the Developer’s office during the NOC application and be present in the Trustee Office to complete the purchase of the property.
The Trustee Office will surely require the birth certificate of the Minor which should be attested if issued outside UAE from the Emirates Embassy & Ministry of Foreign Affairs and legally translated into Arabic to complete the transaction.
Therefore, the laws governing the sale & purchase of the Minors properties are there to protect the money of the Minors from the legal guardian’s own beneficial use and assure that it is used for the interest of the Minor.
Our expertise will be guiding you through the entire process, from assessing your deal and ensuring that you have all your documentation in place and all the way up to gaining approvals from the authorities in the Dubai Land Department to complete your transaction.
For more information, please contact us to learn more about selling and buying properties for Minors. Call us at +97143691704 or drop an email at [email protected] or [email protected] to get your queries answered in no time. Additionally, you can visit our website www.famconveyancing.com to check our services.