Disputes over property in the UAE arise due to landlord-tenant conflicts, boundary conflicts, and contract breaches. The legal process of resolving them starts with negotiation and mediation through legislation such as Law No. 2 of 2006 on Renting and Leasing Real Estate in Dubai. Where negotiations fail, formal legal procedures come in, as per Federal Law No. 2 of 2006 on Surveying and Federal Law No. 2 of 2007 on Ownership of Real Estate.
Term Definition Real Estate: Land or immovable property to be utilized for residential, commercial, or industrial use. Tenant: Any party or company renting property under the tenancy agreement. Landlord Party or entity owning property, renting space to tenants. Real Estate Market A market that includes property exchange, purchase, and leasing under the auspices of a formalized legal framework.
| Conflict Type | Causes | Resolution |
| Rental Conflicts | Increase in rent, eviction notice, failure to maintain, and disputes relating to tenancy agreements. | The RDC (Rental Dispute Center) provides mediation and court procedures for the resolution of rental conflicts. |
| Ownership Conflicts | Issues related to title deeds, issues of inheritance, boundary issues, or fraudulent transactions. | The Dubai Land Department governs the registration of titles and employs web portals such as Oqood to confirm real property ownership. |
| Disputes by Litigation | Delay in transfer of property, faulty buildings, and failure by developers and contractors to pay. | Cases of litigation are dealt with by Dubai Courts, but arbitration would most frequently be the most desirable process in a bid to resolve matters more quickly in trust. |
| Tax Type | Details |
| Value Added Tax (VAT) | 5% VAT is charged by the UAE on commercial property, whereas the sale and leasing of residential property are exempt except for insignificant proportions. |
| Corporate Tax | Corporate tax will not be levied on rent income in the case of individuals, but real estate companies will be liable to pay tax. |
| Municipal Charges | Certain emirates pay municipal charges as a rate of annual rent to property owners and occupiers. |
| Registration Charges | Dubai Land Department levies a 4% registration fee in case of the sale of property. |
| Duty of Inheritance | The UAE does not impose a duty of inheritance, but there are provisions of Sharia on the division of property received by inheritance. |
| Dubai Land Department | Rental Disputes Centre (RDC) | Dubai Property Court |
| DLD-ASC (Amicable Settlement Centre) acts as a mediator between the parties (landlord and tenant). Offers free mediation to ensure a friendly out-of-court settlement. Where such cases cannot be resolved by means of mediation, they are referred to the judicial authorities. | Established under Decree No. 26 of 2013 as a specialized judicial court. Is responsible for determining cases of rentals, evictions, and co-ownership. Uses an electronic case management system in order to be effective. | The property cases outside the purview of the RDC, i.e., the possession cases and building cases. Offers a platform for the determination of complex real property cases. |
| Litigation | Arbitration | Mediation |
| Litigation is an ancient judicial way of resolving property disputes. It is the act of placing a case before an expert court having jurisdiction before which facts and arguments are laid down by experts of the subject field of law before a judge. It resolves the majority of the real estate disputes, excluding rent-related disputes. | Arbitration is a first-resort approach because of confidentiality, flexibility, and quick settlement. Special real estate arbitration facilities in real estate disputes are also provided by the Dubai International Arbitration Centre (DIAC). It is enforceable under law to get the agreement of the parties to the enforcement of the order without reference to protracted legal proceedings. Commercial property disputes and confidentiality are where arbitration will prove more effective. | Mediation is alternative, non-legal resolution of disputes. Mediation is provided by DLD-ASC and RDC for low-cost resolution without conflict. Disagreement between individuals is mediated by a neutral third party in negotiation and acceptance of what both sides will live with. Mediation fosters harmony and not litigation that takes decades, and it's usually faster and cheaper. |
Conclusively, the institutional mechanism for resolving property disputes in Dubai is wide-ranging and consists of regulatory agencies, specialist courts, and alternative dispute resolution processes. Landlords, tenants, buyers, and developers must be well-educated concerning legal requirements, record transactions correctly, and resort to professionals when needed. Employment of institutions like the DLD-ASC, RDC, and Dubai Property Court ensures fair and legally compliant resolutions of disputes.
Property disputes in Dubai are more than just an understanding of the law; it is about technical know-how and a strategic approach. Tax Consultant Dubai, UAE, offers specialized legal services for both landlords and tenants, guaranteeing an effective solution to any tenancy dispute.
Our Services:
We ensure that effective negotiation and fair settlement on property disputes occur through strategic meetings with clients at all critical stages of negotiation. We are ready to offer you practical, result-driven solutions for problems related to tenants in dealing with landlords and vice versa within the Dubai property market.