A Guide for Registering Property for Lease in  the UAE

The Dubai Land Department (DLD) issued Administrative Resolution No.134 in 2014 regarding the registration of leases in Dubai. Prior to the Resolution, there was some ambiguity surrounding the registration of leases with terms of more than five years but less than ten years.

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▫ There was no clear legal guidance on this, and the Resolution was created to resolve the issue. Although it was never explicitly established in statute, it was commonly thought that leases of more than 10 years were registerable on the Real Estate Register based on DLD practice. 

▫Here are some things to know before you approach legal consultancy services.

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What did Administrative Resolution No. 134 of 2013 clarify?

The Resolution specifies the proper location for registering leases based on the term length. This clarification will assist business tenants in properly comprehending the implications of signing a ten-year lease. It also specifies when a lender may apply to the Dubai Land Department for registration of a legal mortgage while providing financing to a tenant.

What is the Ejari System for Property Registration in Dubai?

EJARI is a web-based tool established by RERA for recording tenancy agreements for all types of property in the Emirate of Dubai, as defined by Law No. 26 of 2007, as revised by Law No. 33 of 2008. EJARI is the initial step toward regulating real estate leasing and management. EJARI requires all renters and landlords to register their rental and leasing agreements.

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Where should a property for lease be registered: the Real Property Register or the Ejari System?

The Real Property registered from a legal consultancy services is recognised as an ownership interest recognised as a right in rem rather than just a contractual right. As per Administrative Resolution No. 134 of 2013, the leasing agreement must be registered with the Dubai Land Department if it is for a period of not less than 10 years and not more than 99 years. If the lease is for less than 10 years, the lease must be recorded on the Ejari system.

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Conclusion

We hope that this post has clarified how to register a property for lease in the United Arab Emirates. At the same time, this article's goal is to offer a broad overview of the subject. It is not meant to be used as legal advice. You should get expert counsel for your specific situation. Contact a real estate lawyer in Dubai to learn more about lease registration in Dubai.

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