December 22, 2022
Written by: Dalia Mazin
Head of Contracts & Compliance
[email protected]
Gifting of properties are a very common practice in Dubai, mainly for inheritance or succession reasons. Gifting (can be also referred as “Granting” or “Hiba”) is a voluntary transfer of a property in full or partially, from “individual to individual” OR “individual to company” OR from “company to individual” with a significantly less transfer fee by the Dubai Land Department.
In this article we will discuss the requirements by the Dubai Land Department that governs the practice of Gifting of properties in Dubai. Maybe this can be your resolution for the coming year, to Gift your property to your beloved Family!
What is property gifting?
Property Gifting allows property owners to register granted property in full or partial by assigning a property to an individual or a group of individuals (first-degree relatives: mother, father, spouse, or children) or companies, given that the property must not be restricted or granted.
The individual or the company that Gifts the property are referred in Dubai Land Department as “Donor” while the entity receiving the Gift/the property are referred as “a Donee”.
What are the required documents?
The Dubai Land Department requires certain legalized evidence of documents in order to conduct the Gifting of properties. This evidence is usually in the form of a marriage certificate and passport copies of spouses, or a birth certificate and passport of children and parents or license of company.
For Individuals:
- Title deed of the owner.
- No Objection Certificate (NOC) from the Developer.
- Evaluation Certificate of the property from Dubai Land Department.
- Birth Certificate (if the Gifting is for children: son or daughter & parents: Mother or Father).
- It should be attested in the Ministry of Foreign Affairs from the origin country, Emirates Embassy from the origin country, Ministry of Foreign Affairs in Dubai and Arabic legal translation.
- Marriage Certificate (if the Gifting is for spouse: husband or wife).
- It should be attested in the Ministry of Foreign Affairs from the origin country, Emirates Embassy from the origin country, Ministry of Foreign Affairs in Dubai and Arabic legal translation.
- Original passport, visa and Emirates ID.
- Succession certificate (in case of owner’s death & inheritance transfer).
For company:
- Title deed of the owner.
- No Objection Certificate (NOC) from the Developer.
- Evaluation Certificate of the property from Dubai Land Department.
- Trade License for LLC company.
- Certificate of Incorporation (for JAFZA/Offshore).
- Certificate of Incumbency (for JAFZA/Offshore).
- Certificate of Good Standing (for JAFZA/Offshore).
- Memorandum of Association (MOA) with Arabic translation.
- Shareholder’s passport, visa and Emirates ID.
- Power of Attorney AND/OR Board of Resolution.
For Mortgage:
Gifting property that is under mortgage is not that common but possible. The Owner’s/Donor’s bank would either need the mortgage amount to be paid off in full or coordination with the bank to carry out the transfer of ownership. The costs would be higher in such process with additional required steps including mortgage release fees to Dubai Land Department of (AED 1590), mortgage re-registration fee at Dubai land Department of (0.25% of the mortgage amount) and trustee fees (AED 4000.
For Off-plan:
It is important to note that an off-plan property cannot be Gifted. However, if the property is still under SPA with the Developer and not registered yet in Dubai Land Department then internally it can be requested to change the names and re-assign directly with the Developer.
What are the associated transfer fees? The difference between 4% transfer fee and 0.125%
If the owner decides to Gift the property fully or partially to their first degree relative or company, then the transfer fee to be paid to Dubai Land Department is reduced to 0.125% of the property value and not 4%. If the owner wants to Gift their property to their brother or sister, then they will not qualify for the reduced Gift rate but rather pay 4% DLD transfer fee.
Indeed, 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 of Gifting.
For more information, please contact us to learn more about Gifting properties. 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.
Gift your property to your beloved Fam-ily, with fam Properties!