The Dubai International Financial Centre (DIFC) has released a new set of real estate laws and regulations. The amendments to the Real Property Law regimes came into effect on 14th November 2018. This Real Property Law 2018, repeals and replaces the Real Property 2007 Law (DIFC Law No. 4 of 2007) as it was in force immediately prior to the commencement of this Law (the “Previous Law”), and may be cited as the “Real Property Law 2018” or “this Law”. This Law applies to all Real Property within the jurisdiction of the DIFC which includes land, buildings, and items placed in, on or under the land comprising a Lot. Key amendments introduced by Real Property Law 2018 in relation to leasing and transfer of Real Property Interests:
- For any DIFC property where the term of the lease (including any option to renew, whether or not exercised) exceeds 6 months, the Lease must be registered as Real Property Right with the DIFC Registrar.
- Where the properties are mortgaged, the freehold transfer fee needs to be paid within 50 days from the date of signing the memorandum of understanding between the two parties.
- The Real Property Law regulations have further extended the scope of exemptions by providing total 8 exemptions from the payment of freehold transfer fee which is generally charged at 5% of the purchase price or market value.
- While transferring non-freehold interests, a new schedule of registration fees will apply.