Corporate Entities Can Now Register Freehold Title-DLD Issues Formal Guidelines

Analysis

Bianca Gracias explains how the Dubai Land Department (DLD) has taken a positive step towards promoting awareness in the Dubai real estate sector by formally issuing guidelines (the Guidelines) addressing how corporate entities can acquire and hold freehold title to property in Dubai

In brief:

Effective 1 January 2011, the DLD confirmed it will permit and accept registration of title to freehold property provided the corporate entities purchasing property are “offshore” entities registered in the “Jebel Ali Free Zone (JAFZ)”.
Purchasers who have previously incorporated entities within various local UAE free zones to purchase freehold property may now be required to incorporate offshore entities in JAFZ and register their freehold title at the DLD.
Developers in Dubai will now need to assess their customer database and advise their purchasers in respect of registration of title, requirements and applicability of the DLD Guidelines. We recommend developers seek professional advice in respect of assessing their customer database and notifying their customers.