In Dubai, real estate transactions for minors require a nuanced understanding of the legal framework. While minors—defined as individuals under 21 years of age—are legally permitted to own property in Dubai, the laws are designed to safeguard their interests. These rules ensure that guardians act in the minor’s best interests when managing property, whether for buying or selling. This article will explore the regulations governing real estate transactions for minors and the role of legal guardians.
Who is Considered a Minor in Dubai?
Under UAE law, a minor is a person under the age of 21, which is the recognized legal age of adulthood. However, the term can also apply to individuals over 21 who lack legal capacity or the ability to differentiate between right and wrong. Such individuals may require a guardian to handle transactions related to buying, selling, and managing property on their behalf. This ensures protection of the minor’s financial interests, and any decisions regarding property must be authorized by Dubai Courts.
Selling Property Owned by a Minor
1. Fully Owned Property
When a minor fully owns a property, the sale process requires several legal steps to ensure the transaction is in the minor’s best interest. A legal guardian must submit the Sale and Purchase Agreement (SPA) to Dubai Courts, seeking permission to sell the minor’s property. The Court will issue a No Objection Certificate (NOC) to the Dubai Land Department (DLD), allowing the sale to proceed. However, all proceeds from the sale are held in Dubai Courts’ accounts, safeguarding the funds until the minor turns 21.
In cases where the guardian can demonstrate that the funds are urgently needed for education or the purchase of another property, the Court may reconsider and release the money. This decision is entirely at the Court’s discretion, based on evidence provided by the guardian. Upon approval, the buyer can complete the transaction at a Trustee Office by issuing a manager’s cheque in the name of Dubai Courts for the sale price, and a new title deed will be issued in the buyer’s name.
2. Partially Owned Property
If a minor co-owns a property, the process is similar. The legal guardian must submit the SPA to Dubai Courts for approval to sell the minor’s share. After receiving the Court’s NOC, the transaction can be finalized with the buyer, with the minor’s share of the proceeds deposited into the Dubai Courts’ account. The funds remain in this account until the minor reaches the legal age of 21 unless the Court deems their immediate use necessary for the minor’s well-being or future investments.
Purchasing Property on Behalf of a Minor
Minors are allowed to acquire property through the involvement of their legal guardian. To initiate the process, the guardian must sign the SPA on behalf of the minor and ensure all necessary documentation is in order. The minor’s birth certificate, translated into Arabic and attested by the UAE’s Ministry of Foreign Affairs, must be presented at the Trustee Office to complete the purchase.
As part of the due diligence, the guardian must prove financial responsibility and show that the property is being acquired for the benefit of the minor. The guardian’s role is to manage the property until the minor reaches 21, at which point they can assume ownership and full control.
Guardianship and Property Management
In Dubai, the property of a minor is placed under the guardianship of a parent or a court-appointed legal guardian. The guardian is responsible for managing the property and handling all related financial obligations, such as taxes and maintenance fees. Guardians must provide evidence of their financial capacity, including bank statements or proof of income, to ensure that they are equipped to manage the property effectively.
Additionally, the guardian must justify why the purchase or sale is necessary and in the minor’s best interest. Failure to provide these justifications can result in the Court denying permission for the transaction.
Court Oversight and Legal Protections
Dubai’s legal framework is designed to protect the rights of minors, ensuring their property is not misused or mishandled by guardians. All transactions related to a minor’s property must be approved by Dubai Courts, which exercises strict oversight over the funds resulting from property sales. In cases where the minor’s financial needs are met by other means, the sale proceeds are held by the Court until the minor reaches adulthood.
This legal protection ensures that the property or funds cannot be accessed by the guardian for personal use. If a guardian wishes to use the funds for the minor’s education or other necessities, they must provide solid evidence, and even then, the decision remains with the Court.
What Happens to Sale Proceeds?
Upon the sale of a minor’s property, the proceeds are deposited into a special bank account managed by the Dubai Courts. The funds are held in this account to cover the minor’s education, care, or general welfare, as deemed necessary by the Court. If the Court determines that there is no immediate need for these funds, the money will be held until the minor reaches 21 years of age, at which point they will have full access to the proceeds.
Conclusion
The real estate landscape for minors in Dubai is heavily regulated to protect their financial and legal interests. Whether buying or selling property, legal guardians must adhere to the laws and seek court approval before completing any transaction. Working with a reputable real estate agency, like Homist Realty, can streamline the process and ensure that all legal requirements are met.
At Homist Realty, our team of experienced consultants is well-versed in the procedures governing real estate transactions for minors in Dubai. We provide end-to-end support, from document preparation to court approvals, ensuring that the minor’s interests are always protected. If you need guidance on purchasing or selling property for a minor, contact us today at contact@homist.ae or +971 55 726 7250.