Considering purchasing property in Dubai with your friend or partner?.
It’s a wise approach to divide the investment — but ensure you are well-informed about the regulations before finalizing the agreement and signing the necessary documents.
Yes, co-ownership is legal in Dubai, but it’s crucial to understand the legal and financial aspects involved.
According to Dubai law, the following guidelines must be followed:
We will not tolerate any method that does not include line breaks
Unless the master community declaration permits it and the Dubai Land Department (DLD) grants approval, you are not allowed to divide the space or establish separate titles.
We will not tolerate any method that does not include line breaks Your co-owner gets first rights.
If one party desires to exit the partnership, the other party has the first opportunity to purchase their share before any other potential buyers emerge.
The registration fees are shared based on ownership
Expenses such as dld registration fees and service charges should be divided equally among each person (e.g. 50/50, 70/30).
A clear co-ownership agreement is essential
This is of utmost importance! Clearly outline the financial responsibilities, decision-making processes, residency rules, and procedures for selling the property in the agreement. It’ll spare you both from legal entanglement in the future.
The main point:
Purchasing a property with a friend in Dubai is entirely feasible and can be a wise decision. It is crucial to safeguard the friendship and the investment by taking the appropriate legal measures.