Tim Elliot
Welcome to Lawgical, the U.A.E.’s first, and only, regular weekly legal podcast. My name’s Tim Elliot. Lawgical is recorded at the Dubai-based legal firm, HPL Yamalova & Plewka. As ever, the Managing Partner is Ludmila Yamalova. It is nice to see you.
Ludmila Yamalova
Great to be here with you, Tim, as always.
Tim Elliot
Ludmila, this time we’re broadly discussing property registration, but we’re going to take a particular angle, I guess, a particular case, and we’ll change the names to protect the innocent, as it were.
Ludmila Yamalova
Or less innocent.
Tim Elliot
Or the not so innocent. Can I start with this very simple assertion? The only way you may own a property in the U.A.E. is if it is registered in the land registry, and that is final. Property registration in the land registry is considered undisputed evidence of property ownership. That is the case.
Ludmila Yamalova
Correct. To own property legally in the U.A.E. and for that interest to be protected, it needs to be registered with the relevant authorities, and in your specific name, or in the name of a legal entity that is owned by you, if that is your property.
There are two ways of owning, (1) either directly in your own name, solely or jointly with someone, or (2) through a legal entity, and it could be a company.
In fact, if the property is based in the U.A.E. the company also has to be registered here. There was a time when you could have a BVI or an offshore entity elsewhere and then that entity would directly own property in the U.A.E. That has been disallowed many, many years ago. Now if you want to own property in the U.A.E., other than in your own personal name, then yes, it has to be owned through a company that is based here. For example, it could be a Jafza Offshore or any other entity in the U.A.E. that would own your property interest here.
That is the only legal way of owning property here, and that same interest has to be registered at the relevant land registry. In the U.A.E., which is a country of seven emirates, every emirate has its own authority to regulate real estate matters and the real estate market, including their property registration, so every emirate has its own dedicated land registry in which it keeps track of all the registration and ownership and transfers of real property interests.
Dubai is one of the more developed emirates specifically for land registry in terms of having dedicated authorities that oversee or manage land registry. For example, in Dubai we have what is called the Dubai Land Department and also under it sits the Real Estate Regulatory Agency (RERA), basically a separate authority, and the Dubai Land Department is where all property interests are registered.
In Abu Dhabi, for example, that is managed by the Abu Dhabi Municipality. In Dubai we have the Dubai Municipality that manages municipality-related matters, and then anything related to property interests is part of a different authority which is the Dubai Land Department.
In Abu Dhabi, it is just the Abu Dhabi Municipality, and from what we know in other emirates, it is also very similar and in Abu Dhabi it is governed by the same sort of existing entities like the municipality, for example. In Dubai, it is just the Dubai Land Department.
You have to have the property in your name, and it has to be registered with the land department. Now there are two types of registrations, at a high level. One is if the property is fully paid off or is already ready actually, then you will have what is called a title deed, and that title deed will be registered with the land department, and you will receive the title deed that is issued by the land department.
There is also property that is under construction, and that same interest has to be registered with the land department in Dubai, and that document is called, not the title deed, but it is called the Oqood. It is a preregistration. The Oqood, document wise, almost looks like a title deed. It is just called Oqood and basically it shows that the particular transfer of real estate property has now been registered to your name, and specifically with the Land Registry in Dubai, and therefore that particular property cannot be resold to someone else, because remember, we are talking about off-plan property, properties that are not finished yet, so you don’t have a title deed to it yet.
One way or the other, there is an interest, your interest in property that is registered with the governing authority, and it’s official, and not only is it the only legal way to own property in the U.A.E. and in Dubai in particular, but also it becomes, as you rightfully said, undisputed evidence of ownership of property.
Tim Elliot
Okay. That’s the background. That’s the situation. Let’s take a look at a real-life example, a case that I know you’re going to share today. We will change names and nationalities, etc., but let’s just say that these are two European nationals, expatriates, and they are business partners. You have a particular story to tell.
Ludmila Yamalova
Indeed. What this comes down to is what in other ways is called nominal ownership, a nominal holding of an interest. In other words, fictitious ownership or fictitious registration, and that is a scheme that perhaps has existed for eons and certainly has been fairly prevalent among certain nationalities, among certain countries, for the last several years in particular.
As the world has become a little wealthier and more people have come into a lot of money very quickly, often people don’t want to hold properties or other interests in their personal name, so they hold it in somebody else’s name. For example, this often applies to government officials who don’t want to be seen as owning property, particularly in foreign countries. Similarly, this applies to other assets—cars, boats, yachts, planes, and so on.
Ultimately there are people, for different reasons, who don’t want to have certain interests registered directly in their name. They could be politicians, wealthy businessmen, or individuals who have inherited money. But ultimately it comes down to people with money because, if you don’t have money, you don’t have these kinds of problems. That’s the silver lining for those of us without that kind of money—fewer problems to deal with.
Tim Elliot
More money, more problems, Ludmila. It’s an old adage.
Ludmila Yamalova
Indeed. Exactly. Basically, those people who ultimately have money, either because of tax considerations, inheritance purposes, divorces, or other potential disputes, may prefer not to have certain interests registered in their personal name.
The U.A.E. is no exception and has attracted over the years many people with money. It has been easy for expats to own property here, unlike in many other countries where expats may not necessarily own properties or companies directly. Dubai, in particular, has been very welcoming of these kinds of investments. With that openness, however, comes nuances around how properties are owned.
When I started working here in 2008, for instance, there were properties owned by offshore companies—like those in Belize, Cayman Islands, or the BVI. At that time, before the financial crisis, this was a popular way of owning property. Dubai did not regulate that type of ownership very strictly then. The problem became: who is the actual owner?
For example, if you owned a property here through a Belize company, how could the authorities confirm you, Tim, could sign off on transferring the property if you wanted to sell it? This led to regulatory changes. Ownership was tightened to require registration under entities traceable within the U.A.E. to clarify who the ultimate beneficiary and decision-maker was.
Tim Elliot
So, ownership has become more transparent.
Ludmila Yamalova
Exactly. But despite these regulations, nominal ownership arrangements still exist. A recent case highlights this. Two European nationals—let’s call them Amy and Bob—owned a villa. Officially, the property was registered in Amy’s name, but Bob claimed it was his because he paid for it. Amy was just a nominal owner holding it on his behalf.
The arrangement worked fine until their relationship soured. Bob insisted the property be transferred to him, claiming it was his because he paid for it. However, Amy refused, asserting the property was legally hers, evidenced by the title deed in her name.
This situation is common among couples or business partners. Often, a breadwinner will put property in their partner’s name, assuming it can later be reclaimed if disputes arise. But in this case, no agreement could be reached, and Bob was especially aggrieved as the property’s value had risen significantly.
Bob took the case to the Dubai courts, demanding the property be transferred back to him. However, the court ruled unequivocally in favor of Amy, stating the title deed is the ultimate evidence of ownership. Unless Bob could prove fraud, the court held that Amy was the rightful owner.
Tim Elliot
So, the court upheld the integrity of the title deed system?
Ludmila Yamalova
Yes. The court emphasized that the land registry system exists precisely to prevent disputes like this. Allowing ownership claims outside the registered title deed would undermine the entire property registration framework.
The court further clarified that private side agreements circumventing the law are unenforceable. Any transaction affecting property ownership—like a mortgage or sale—must be formally registered with the land registry. Unregistered agreements hold no legal weight.
Tim Elliot
Amy had the title deed, and that was enough to shut down Bob’s claims.
Ludmila Yamalova
Exactly. However, there is one exception: fraud. If Bob could prove Amy obtained the property through fraudulent means, the case might have been different.
Alternatively, Bob could claim repayment for the money he gave Amy to buy the property, framing it as a loan. But even in such a scenario, Bob could only recover the original amount paid—not any appreciation in the property’s value.
Tim Elliot
So, no chance for Bob to claim the increase in the property’s value.
Ludmila Yamalova
Correct. If Bob’s claim is limited to repayment of funds as a loan, he cannot argue for the property’s current market value or appreciation.
Additionally, private loans often raise issues around interest. In the U.A.E., charging interest on personal loans is generally illegal unless the lender is a licensed financial institution. Therefore, any claim for interest on such a loan would likely be dismissed.
Tim Elliot
The burden of proof rests on Bob.
Ludmila Yamalova
Yes, and this case highlights the importance of registering property ownership correctly. Without proper registration, claims like Bob’s are difficult—if not impossible—to enforce.
Tim Elliot
This applies not just to business partners but also to family members and other relationships, right?
Ludmila Yamalova
Absolutely. This principle applies universally, regardless of the relationship between the parties. The title deed remains the definitive evidence of ownership, as emphasized by Dubai’s courts in multiple rulings.
Tim Elliot
That’s the takeaway here. If you have a title deed registered in your name, the property is legally yours.
Ludmila Yamalova
Precisely. Any other arrangement, such as nominal or fictitious ownership, is unenforceable unless fraud can be proven.
Tim Elliot
That’s another episode of Lawgical, this time focusing on property registration, nominal ownership, and the lessons from a recent real-life case. Our legal expert, as always, Ludmila Yamalova, Managing Partner here at Yamalova & Plewka. Thank you.
Ludmila Yamalova
Thank you, Tim.
Tim Elliot
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