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The Federal Civil Transactions Law No. 5 of 1985, under the ‘Right of Ownership’ section’s second chapter, addresses the Possession Law in the UAE that specifies the guidelines, provisions, and consequences of possession in the country’s various emirates.
Possession law in the UAE
According to Article 1307 of the Federal Civil Transactions Law, the definition of possession is the control of a person over a thing or right that they are allowed to deal with, whether they do it themselves or through an agent who deals on their behalf, provided that they are connected to it with a link that obligates them to obey in matters related to this possession.
Provisions of possession in UAE law
Possession is deemed ongoing from the regular and customary use of a thing. However, if it is associated with coercion, secrecy, or confusion, it has no impact on the person affected by those actions unless they cease. The possession’s effect is recognized only from the time they stop.
1. Transfer of Possession
The UAE Possession Law stipulates that possession is transferred from the possessor to another by agreement, provided that the person to whom the possession is transferred has the ability to control the thing that is the subject of possession, even if it has not been delivered to him. Possession retains its status at the time it was acquired unless evidence is provided to the contrary.
In the event of dispute among several people over the possession of one thing, the person who has physical possession is considered – temporarily – to be the possessor, unless it is proven that he acquired possession in a defective manner.
2. Termination of Possession
The possession terminates if the possessor abandons it or loses actual control over the thing in possession. However, possession does not expire if there is a temporary impediment to the exercise of actual control over the thing.
If this temporary impediment persists for a full year as a result of new possession that occurred without the possessor’s consent or knowledge, then the lawsuit regarding it shall not be heard. However, if the impediment is “substantial” to the lawsuit, then the year shall be counted from the time the lawsuit could be filed.
The possessor who files a lawsuit to recover his possession has the right to request that the claimant be prevented from constructing buildings or planting in the disputed property during the lawsuit. This is subject to providing sufficient guarantees to the claimant as compensation for the damage he incurs if the claimant’s claim is unfounded.
The effects of possession in the Emirates
1- Possession over time
Article 1317 of the law states that whoever possesses a movable or immovable property that is not registered, or a personal right to a movable property, or an unregistered personal right to an immovable property, for a period of 15 years without interruption, shall not be subject to a claim of ownership or personal right from anyone who does not have a legitimate excuse.
Article 1309 of the law refers to the right of someone claiming ownership through adverse possession based on the possession of the person from whom the property was acquired, while it is not permissible for a lessee, beneficiary, depositor, borrower, or their heirs to claim ownership through adverse possession.
It is not permissible to possess money or properties that belong to the state or are affiliated with charitable endowments, or to gain any personal right to them through adverse possession.
Possession with good faith
If possession is coupled with the passage of time in good faith and is based on a valid reason, then the period that prevents filing a lawsuit is seven years.
The valid reason, as stated in Article 1318, is evidence proving the possession of the property, such as:
- Transfer of ownership by inheritance or will.
- Gift between living individuals.
- Sale and exchange.
As for good faith, it is the possession of something by a person who is unaware that they are infringing on the rights of others. The “good faith” quality of the possessor disappears when they become aware that their possession is an infringement on the rights of others. Similarly, from the time of the possessor’s announcement of defects in their possession in the lawsuit newspaper, the quality of “good faith” is lost.
Possession by Hand
The claims of the originality of a waqf and the claim of inheritance are not heard against the possessor of property by hand, with unchallenged and uninterrupted possession for a period of 33 years with acts of ownership.
Similarly, the claim of absolute ownership, the claim of inheritance, and the claim of minor waqf are not heard against the person who has put their hand on the property if the period specified for preventing the claim has passed since the time of the handover of the property to them.
Putting the hand on the property, if proven and established at an earlier time, indicates its existence between the two periods, unless there is evidence to refute it. The passage of time is not interrupted by removing the hand from the property unless the owner returns it or files a claim to return it within a year.
2- Possession of Movable Property
Article 1325 of the law states that whoever possesses movable property or has a direct right to it, or a document to its bearer, and their possession is based on a valid reason and good intention. The claim of ownership will not be heard because possession in itself is evidence of ownership unless proven otherwise.
The owner of the lost, stolen, or seized movable property is exempted from the provisions of the previous article, where the law allows them to recover their property from whoever possessed it in good faith within 3 years from the date of loss.
If the possessor of the stolen, lost, or seized item had bought it in good faith from someone who trades in such items, they have the right to demand from whoever recovers the item to promptly reimburse them for the price they paid.
3- Ownership of Harvested Fruits by Possession
According to articles 1327 and 1328, the possessor of harvested fruits and benefits thereof in good faith owns them for the duration of their possession. They will be considered to have bad faith and will be responsible for all fruits that they have received and those they have failed to receive from the time their good faith turned into bad faith. The possessor has the right to recover the expenses they have incurred in producing these fruits.
4- Recovery of Expenses in Possession Law in the UAE
Article 1329 of the possession law in the UAE states that when an owner regains their property, they must compensate the possessor for all essential expenses incurred in protecting the property from damage. However, they are not required to reimburse any additional expenses. In such situations, the possessor has the right to remove anything that they installed with these expenses and restore everything to its initial state.
5- Responsibility for loss
The possessor with good intentions is not obligated to compensate the owner for any benefits they received, nor are they responsible for any loss or damage to the property, except for any compensation or insurance that may result from such loss or damage. However, if the possessor has bad intentions, the UAE possession law holds them responsible for any loss or damage to the property, even if it was caused by factors beyond their control.
