Property ownership transfer in Abu Dhabi is governed by the real estate sector regulation law in the emirate and is in accordance with the property transfer regulations specified in the 1985 Federal Civil Transactions Law.
Transfer of property ownership in Abu Dhabi
Along with the traditional procedures for property transfer, the Abu Dhabi government has enabled property owners in Abu Dhabi to electronically transfer or modify property data from the previous owner to the current owner, based on the land plan or property ownership document issued by the relevant authorities.
Property transfer procedures can be completed through the official website of Abu Dhabi Distribution Company or by submitting a request for property ownership change via the “TAMM” smart government services platform in Abu Dhabi.
Service channels
Traditional channels
- In-person attendance
- Call center
- Phone call
Digital channels
- Fax
- Mobile applications
- Automated phone
- Interactive kiosks
- Website
Categories benefiting from the service
The property ownership transfer service in Abu Dhabi benefits individuals, businesses, and the government sector for the following types of properties:
- Individuals (G2C): residential and agricultural.
- Business sector (G2B): industrial and commercial.
- Government sector (G2G): governmental.
Procedures for transferring real estate ownership in Abu Dhabi
Property ownership transfer in Abu Dhabi is conducted electronically without any fees, through a series of steps where the required documents and papers are submitted.
Documents required for property transfer are:
- An application for property transfer submitted by the new owner.
- A letter from the new owner.
- A recent map of the property issued within the last 6 months.
- The new owner’s ID card (for individuals).
- Trade license (for companies).
- Official letter (for government entities).
- Clearance letter from the previous owner.
Steps for transferring property ownership:
- Submitting the application with the required data.
- Opening the request in the system.
- Reviewing and approving the request.
- Sending a text message or contacting the customer to inform them that the request has been completed.
Rules and regulations for property transfer in the UAE
The Federal Civil Transactions Law addresses the transfer of ownership in articles 511-567, setting the guidelines and conditions for property transfer in the UAE, including residential and agricultural property, as follows:
- Ownership is transferred to the buyer upon completion of the sale, unless otherwise specified by law or agreement.
- If the property price is deferred or installment-based, the seller may suspend the transfer of ownership until the buyer pays the full price, even if the delivery has been made. Once the price is paid, the buyer’s ownership is retroactive to the time of sale.
- The seller is obligated to deliver the property to the buyer free of any other right unless there is an agreement or provision in the law to the contrary.
Sales Attachments
- Sales attachments and anything customary to be considered part of the sale, even if not mentioned in the contract, belongs to the buyer.
- A contract for a building or trees includes the land on which the building stands, the land in which the roots of the trees extend, and a contract for the land include any buildings and trees on it, unless a condition or custom in the two contracts states otherwise.
- A contract for a house includes its fixed facilities, but not movable ones unless the buyer stipulates their inclusion in the contract.
- The sale of land does not include its crops unless a condition or custom states otherwise.
- If the seller hands over the property to the buyer correctly, they become not responsible for any damage that may happen to the sold property after that.
Increase and Decrease in Sale
If the amount of the sale is specified in the contract and there is an increase or decrease in it without agreement or custom, the following rules must be followed:
1- If the sale is not affected by the increase or decrease, the seller has the right to reclaim the excess amount and the buyer must pay for the shortfall, whether the price is specified per unit of measurement or for the total sale.
2- If the sale is affected by the increase or decrease, and the price is specified per unit of measurement, the seller has the right to receive the price for the excess and the buyer must pay for the shortfall. However, if the price is specified for the total sale, the buyer has the right to receive the excess and there is no compensation for the shortfall.
3- If the increase in the sale burdens the buyer more than what was purchased, they have the option to cancel the sale, unless the amount of the excess is trivial. If the shortfall makes the transaction impossible for the buyer, they have the option to cancel the sale, unless the amount of the shortfall does not affect the intended purpose of the buyer.
4- If the buyer accepts the sale while knowing that it is deficient, they lose the right to cancel the sale or to reduce the price as mentioned above if a year has passed since the delivery.
Sale loss before delivery
- If the sold item is lost before delivery, the sale is canceled and the buyer is refunded the price paid.
- If the sold item is lost or damaged due to the buyer’s actions before delivery, the buyer is obligated to pay for it.
- If the seller has the right to choose in the above situation and chooses to cancel the sale, the buyer must compensate him for the sale or its value, while the buyer owns what is left of it.
- If the sold item is lost before delivery due to the actions of another person, the buyer has the option to cancel the sale or approve it and has the right to recourse against the person responsible for the damage with a guarantee equal to the sale or its value.
- If a part of the sold item is damaged, the buyer is given the option to do one of the following:
- Cancel the sale.
- Pay for the remaining undamaged part and cancel the sale for the damaged part.
- Sign the contract for the entire sale at the agreed-upon price and recourse against the damaged part with a guarantee for what was damaged.
- The seller guarantees the safety of the sold item from any third-party claims that may arise before the sale contract or if the claim arises from an incident after the sale due to the seller’s actions.
Defects in the sale
The sale is concluded based on the premise that the item being sold is free of defects unless there is an established customary tolerance for them. The general rules regarding the option of defects in a sales contract apply with the following considerations:
- If an old defect appears in the item being sold, the buyer is given the choice to either return it or accept it at the agreed-upon price. The buyer is not entitled to retain the item and demand a reduction in price for the defect.
- An old defect is considered to be one that existed prior to the sale and is based on an old cause that is present in the item being sold.
- The old defect must be hidden. A hidden defect is one that only an expert can detect and is only visible through experimentation.
- The seller is not responsible for the old defect in the following cases:
- If the buyer was informed of the defect at the time of sale.
- If the buyer agreed to the defect after being informed of it.
- If the seller explicitly stated that they are not responsible for any defects in the item being sold unless the seller intentionally hid the defect or the buyer was prevented from discovering the defect due to circumstances beyond their control.
- If the sale was conducted in a public auction by judicial or administrative authorities.
- If the buyer takes action with regard to the item being sold after being informed of the old defect, they forfeit their option.
- If the item being sold becomes unusable due to an old defect or if the buyer consumed it prior to discovering the defect, the seller is required to reduce the price in proportion to the defect.
- If a new defect appears in the item being sold after the sale, the buyer is not entitled to return it along with the old defect. Instead, they have the right to demand a reduction in price from the seller if the seller refuses to take it back with the new defect.
- If the newly discovered defect is remedied, the buyer has the right to return the item being sold to the seller with the old defect.
Sales expenses
Expenses of registering the sales contract are borne by the buyer, and the expenses of delivering the sold item are borne by the seller unless the agreement or custom states otherwise.
Real Estate Property Regulations in Abu Dhabi
In Abu Dhabi, property transactions involving buying, selling, and transfer of ownership are regulated by the Municipality Affairs Department, which follows the Executive Regulations of Law No. (3) of 2015 on the regulation of the real estate sector in the Emirate of Abu Dhabi. These regulations include the following guidelines:
Real Estate Development Register
- All property transactions and documents are registered in the Real Estate Development Register at the Municipality Affairs Department.
- The buyer is not allowed to deal with brokers or sellers in public auctions who are not registered in the Real Estate Development Register.
Requirements for Real Estate Ownership in Abu Dhabi
When transferring ownership of a property in Abu Dhabi on the plan, the following conditions must be met:
- Obtaining approval from the authorities responsible for the real estate project.
- Depositing the master or subsidiary project plan in the real estate registry.
- The developer must have property rights to the land.
- Providing proof of the developer’s ownership of the project land.
- The real estate developer must have a project guarantee account.
- Obtaining approval from the department on the disclosure statement.
- The buyer must pay the property price according to the actual completion of the construction unless agreed otherwise with the real estate developer.
- The developer or buyer has the right to cancel the sales contract on the plan if one of them violates the conditions.
- The department has the right to issue the necessary decisions to regulate matters related to the methods and mechanisms of sales on the plan, as well as the documents that must be exchanged between the parties concerned in this regard.
Transfer of Property Ownership on Plan
The real estate developer is obliged to transfer the ownership of the sold real estate units on the plan to the registered buyers in the initial real estate register, to the real estate register, once the construction processes are completed, and upon obtaining the completion certificate from the Abu Dhabi Municipality.