Real Property Law DIFC Law No. 10 of 2018

Part 1 : GENERAL ...................................................................................................................................................... 1

1. Title and Repeal ................................................................................................................................................... 1

2. Legislative authority............................................................................................................................................. 1

3. Application of this Law.......................................................................................................................................... 1

4. Background to this Law ....................................................................................................................................... 1

5. Purpose of this Law.............................................................................................................................................. 1

6. Date of enactment................................................................................................................................................ 2

7. Date of commencement........................................................................................................................................ 2

8. Real Property governed by this Law .................................................................................................................... 2

9. Non-applicability of certain other Laws............................................................................................................... 2

10. Concept of freehold ownership of Real Property ............................................................................................... 2

11. Interpretation ..................................................................................................................................................... 2

Part 2 : ADMINISTRATION............................................................................................................................................ 3

CHAPTER 1 — APPOINTMENT OF AND ROLE OF THE REGISTRAR................................................................................... 3

12. Appointment of Registrar and other officers...................................................................................................... 3

13. The objectives, functions and powers of the Registrar..................................................................................... 3

14. Stamp of office .................................................................................................................................................. 4

CHAPTER 2 — ESTABLISHMENT OF REAL PROPERTY REGISTER ................................................................................... 4

15. Registrar shall establish and keep a Real Property Register............................................................................. 4

16. Contents of Real Property Register.................................................................................................................... 4

Part 3 : THE REAL PROPERTY REGISTER ..................................................................................................................... 5

CHAPTER 1 – GENERAL ............................................................................................................................................. 5

17. Information Registrar shall Register................................................................................................................... 5

18. Information Registrar may Register ................................................................................................................... 5

CHAPTER 2 – REGISTRATION OF INSTRUMENTS............................................................................................................ 5

19. Duty to create Instrument and lodge for Registration........................................................................................ 5

20. Registrar’s duty to Register Instruments .......................................................................................................... 5

21. Order of Registration of Instruments.................................................................................................................. 6

22. Registration after death of party executing Instrument ................................................................................... 6

23. Priority of Registered Instruments..................................................................................................................... 6

24. Instrument of postponement.............................................................................................................................. 6

25. Conclusive evidence of information in Real Property Register........................................................................... 6

CHAPTER 3 – CONSEQUENCES OF REGISTRATION......................................................................................................... 6

26. Need for Registration of Real Property Interests................................................................................................ 6

27. Effect of Registration on Real Property Interest................................................................................................. 6

28. Consideration not needed ................................................................................................................................. 7

29. Conclusive effect of Registration ...................................................................................................................... 7

30. Quality of Registered Real Property Interests ................................................................................................... 7

31. Exceptions to Article 30 .................................................................................................................................... 7

32. No title by adverse possession.......................................................................................................................... 8

CHAPTER 4 — UNREGISTERED REAL PROPERTY INTERESTS AND REAL PROPERTY RIGHTS............................................. 8

33. Nature and priority of unregistered Real Property Interests and Real Property Rights ..................................... 8

Part 4 : INITIAL REGISTRATION OF REAL PROPERTY AND TITLES .................................................................................. 9

CHAPTER 1 — GENERAL ............................................................................................................................................. 9

34. Creation of Folios................................................................................................................................................ 9

CHAPTER 2 : SALE AFTER COMMENCEMENT OF THIS LAW ........................................................................................... 9

35. Sale occurring after commencement of this Law .............................................................................................. 9

CHAPTER 3 — INFORMATION TO BE INCLUDED IN FOLIO................................................................................................ 9

36. Information to be included in Folio .................................................................................................................... 9

Part 5 : JOINT HOLDERS............................................................................................................................................ 10

37. Registering co-owners...................................................................................................................................... 10

38. Corporate entity may own Real Property as joint tenant .................................... .............................................10

39. Dissolution of corporate entity joint tenant ........................................................ ............................................10

40. Severing a joint tenancy ............................................................................... ...................................................10

41. Conversion of tenants in common to joint tenancy ............................................ .............................................10

Part 6 : TRANSFERS ................................................................................................................................................ 11

42. Registering a Transfer ..................................................................................................................................... 11

43. Effect of Registration of Transfer..................................................................................................................... 11

44. Merger............................................................................................................................................................... 11

45. Transfer of Mortgaged Lot .......................................................................... ......................................................11

Part 7 : EMINENT DOMAIN ........................................................................................................................................ 12

46. DIFCA to compensate on just terms.............................................................. ....................................................12

47. Transfer under statutory vesting or grant......................................................................................................... 12

Part 8 : LEASES........................................................................................................................................................ 13

48. Lease of Real Property .................................................................................................................................... 13

49. Lease Registration ........................................................................................................................................... 13

50. Requirements for Lease to be Registered ..................................................... ..................................................13

51. Variation and Assignment of Registered Lease...................................................... ..........................................13

52. Binding Nature of a Lease on a Mortgage................................................ .........................................................13

53. Expiry or termination of Lease.......................................................................................................................... 13

54. Rights and obligations under the Leasing Law................................................... ..............................................13

55. Implied powers of Lessors and termination for breach ................................................................................... 14

Part 9 : MORTGAGES................................................................................ .................................................................15

CHAPTER 1 – GENERAL ........................................................................................................................................... 15

56. Right to Mortgage .......................................................................... ..................................................................15

57. Requirements for Mortgage.............................................................................................................................. 15

58. Mortgage as charge only .................................................................... .............................................................15

59. Submortgage..................................................................................................................................................... 15

60. Registration of second or subsequent Mortgage.......................................... ...................................................15

61. Variation of Mortgage ...................................................................................................................................... 15

62. Discharge of Mortgage ..................................................................................................................................... 16

CHAPTER 2 — MORTGAGEE’S POWERS AND REMEDIES......................... .....................................................................16

63. Powers of Mortgagees...................................................................................................................................... 16

64. Exercise of power of sale ................................................................. ...............................................................16

65. Injunction to restrain power of sale ........................................... .....................................................................16

66. Effect of Transfer after sale by Mortgagee....................................................................................................... 17

67. Application of proceeds of sale ....................................................................................................................... 17

68. Appointment of Receiver ................................................................................................................................. 17

69. Entry into possession............................................................................. ..........................................................17

70. Foreclosure ........................................................................................ ..............................................................18

CHAPTER 3 — FURTHER ADVANCES ......................................................... ................................................................18

71. Right to make further advances....................................................................................................................... 18

Part 10 : STATUTORY CHARGES................................................................................................................................. 19

72. Registration of statutory charges.................................................................. ..................................................19

Part 11 : EASEMENTS............................................................................................. ..................................................20

CHAPTER 1 – GENERAL ............................................................................................................................................ 20

73. Easements in Gross permitted .................................................................. .......................................................20

74. Easements by prescription or implication........................................................................................................ 20

75. Rights to support of Real Property and structures............................................ ...............................................20

CHAPTER 2 — IMPLIED EASEMENTS IN DEVELOPMENTS AND SUBDIVISIONS............................ ....................................20

76. Implied Easements for services in development.............................................................................................. 20

77. Implied Easements of right of way and other rights shown in subdivision plan................................ ...............20

CHAPTER 3 — REGISTRATION OF EASEMENTS ........................................................................................................... 21

78. Creation of Easement by Registration ............................................................ .................................................21

79. Requirements for Easement.............................................................................................................................. 21

80. Easement benefiting and burdening same Registered Owner's Lots ............................. ..................................22

CHAPTER 4 — VARIATION OR EXTINGUISHMENT OF EASEMENTS................. ................................................................22

81. Variation or release of Easement by parties..................................................................................................... 22

82. Same person becoming Registered Owner of benefited and burdened Lots................... .................................22

83. Cancellation of Easement........................................................................... ......................................................22

84. Court order varying or extinguishing Easement............................................. ...................................................23

CHAPTER 5 — MEANING OF CERTAIN TYPES OF EASEMENTS ..................................................................................... 23

85. Right of way, right of footway, and party wall......................................... .........................................................23

CHAPTER 6 - EASEMENTS CREATED BY COURT ORDER ............................ ..................................................................23

86. Easements created by Court order................................................................................................................... 23

CHAPTER 7 — CONTRIBUTIONS TO REPAIRS ....................................................... .......................................................24

87. Contribution to repairs.................................................................................... ..................................................24

Part 12 : COVENANTS ................................................................................. .............................................................25

CHAPTER 1 — GENERAL ........................................................................................................................................... 25

88. Covenants in Gross permitted........................................................................ ...................................................25

89. Positive Covenants permitted ................................................................ ..........................................................25

CHAPTER 2 — REGISTRATION OF COVENANTS................................................. ...........................................................25

90. Creation of Covenant by Registration .............................................................. ................................................25

91. Requirements for Covenant.............................................................................................................................. 25

92. Covenant benefiting and burdening same Registered Owner's Lots....................... .........................................25

CHAPTER 3 — VARIATION OR EXTINGUISHMENT OF COVENANTS................................................................................. 26

93. Variation or release of Covenant by parties ..................................................................................................... 26

94. Same person becoming Registered Owner of benefited and burdened Lots........ ............................................26

95. Duration of Covenant ....................................................................................................................................... 26

96. Court order varying or extinguishing Covenant .............................................. .................................................26

Part 13 : TRUSTS..................................................................................................................................................... 28

97. Dealing by trustee........................................................................................ .....................................................28

Part 14 : DECEASED ESTATES................................................................................................................................... 29

98. Registration of personal representative ................................................................ ..........................................29

99. Dealings without Registration of personal representative ........................ ......................................................29

100. Notice of death .................................................................................. ............................................................29

Part 15 : INSOLVENCY............................................................................................................................................... 30

101. Transmission on Insolvency ........................................................................................................................... 30

Part 16 : WRITS........................................................................................................................................................ 31

102. Request to Register Writ of Execution .................................................................. .........................................31

103. How a Writ of Execution is Registered .................................................... .......................................................31

104. Effect of Registering Writ of Execution.......................................................................................................... 31

105. Cancellation of Registration of Writ of Execution ............................................... ...........................................31

106. Discharging or satisfying Writ of Execution..................................................... ...............................................31

107. Transfer of Lots sold under a Writ of Execution..................................................... .........................................31

Part 17 : CAVEATS ................................................................ ..................................................................................32

CHAPTER 1 — REGISTERING CAVEATS ....................................................... ...............................................................32

108. Who may Register a Caveat ............................................................................. ..............................................32

109. Requirements of Caveat ................................................................................................................................. 32

110. Registering a Caveat...................................................................................... .................................................32

111. Notifying Caveat ............................................................................................................................................. 32

CHAPTER 2 — EFFECT OF CAVEAT ...................................................................... ......................................................32

112. Effect of lodging Caveat........................................................................................ .........................................32

CHAPTER 3 — WITHDRAWAL, LAPSING AND REMOVAL OF CAVEATS........ ...................................................................33

113. Withdrawal of Caveat..................................................................................................................................... 33

114. Lapsing of Caveat..................................................................... ......................................................................33

115. Removal of Caveat by Court order................................................................................................................... 34

116. Further Caveat ............................................................................................................................................... 34

117. Cancellation of Caveat by Registrar....................................................................... .........................................34

118. Order for security ........................................................................................................................................... 34

CHAPTER 4 — IMPROPER CAVEATS.......................................................................... ..................................................34

119. Compensation for improper Caveat................................................................ .................................................34

CHAPTER 5 — GENERAL ................................................................................................ ...........................................35

120. Notices to Caveator .......................................................................................... ..............................................35

121. Right to injunction not affected........................................................................... ..........................................35

Part 18 : INSTRUMENTS....................................................................... .....................................................................36

CHAPTER 1 — MANNER OF EXECUTION OF, AND RELIANCE ON, INSTRUMENTS... .........................................................36

122. Execution of Instruments............................................................................................................................... 36

123. Indicating consent when required for dealing............................................ ....................................................36

124. Execution of Instruments by corporations and natural persons....................... .............................................36

125. Execution of Instrument under power of attorney.......................................................................................... 36

126. Registrar’s discretion to reject an Instrument............................................................................................... 36

CHAPTER 2 – SUITABILITY OF INSTRUMENTS FOR REGISTRATION............... .................................................................36

127. When Instrument capable of Registration ................................................... ..................................................36

128. Address for service to be provided ....................................................... .........................................................37

CHAPTER 3 — THE PROCESS OF REGISTERING INSTRUMENTS ............ ........................................................................37

129. Lodgement of Instruments by electronic or other means............................. ..................................................37

130. Registrar’s power to correct obvious errors in Instruments........................................................................... 37

131. Registrar’s requisitions.................................................................................................................................. 37

132. Rejecting Instrument if requisitions not complied with................................................................................. 37

133. Requiring plan of survey to be lodged........................................................... .................................................38

134. Protection of persons under disability ........................................................... ...............................................38

135. Minors......................................................................... ....................................................................................38

CHAPTER 4 — STANDARD TERMS INCORPORATED INTO INSTRUMENTS................... .....................................................38

136. Standard Terms Documents ........................................................................................................................... 38

137. Prescribed standard terms.............................................................................................................................. 39

CHAPTER 5 — OBLIGATIONS IN REGISTERED INSTRUMENTS.......................................................... ..............................39

138. Obligations in Registered Instruments: successors in title implied ................... ...........................................39

139. Registration does not impute validity or enforceability............................................. .....................................39

Part 19 : SUBDIVISIONS............................................................................................................................................ 40

140. Subdivision approval before dealing with part of Lot .................................. ..................................................40

Part 20 : POWERS OF AND PROCEEDINGS AGAINST REGISTRAR ....... ..........................................................................41

CHAPTER 1 : POWERS............................................................................................ ...................................................41

REAL PROPERTY LAW v 141. General powers of the Registrar................................................................................. 41

142. Registrar may correct Real Property Register.................................................. ...............................................41

143. Registrar may prepare and Register a Caveat.................................................... .............................................41

144. Registrar may state a case............................................................................. ................................................41

145. Registrar may demand Prescribed Fees......................................................... ................................................41

146. Registrar may issue Approved Forms ........................................................... ..................................................41

CHAPTER 2 : PROCEEDINGS AGAINST REGISTRAR...................................................................................................... 42

147. Registrar may be summoned for refusal to perform duty .......................... .....................................................42

148. Protection from liability ................................................................. ................................................................42

Part 21 : COMPENSATION FOR LOSS............................................................. .............................................................43

149. The Assurance Fund................................................................................. ......................................................43

150. Compensation from Assurance Fund ............................................................................................................. 43

151. Time limit on claims against Assurance Fund...................................................... ..........................................43

152. Court order about deprivation, loss or damage..................................................... .........................................43

153. Matters for which there is no compensation........................................................... .......................................44

154. Subrogation ................................................................................................................................................... 44

Part 22 : SEARCHES................................................................................................................................................. 45

155. Entitlement to search Folio and Instruments..................................................... ............................................45

156. Evidentiary effect of Documents issued by Registrar ......................................... ...........................................45

Part 23 : OFF PLAN SALES....................................................................................................................................... 46

157. Off Plan Register............................................................................................................................................. 46

158. Developer license .......................................................................................................................................... 46

159. Off Plan Development Registration ................................................................................................................ 46

160. Off Plan Sales Agreements.............................................................................................................................. 47

161. Disclosure Statement...................................................................................................................................... 47

162. Escrow Account ...................................................................................... .......................................................48

163. Construction Defect Rectification ............................................................. ....................................................49

164. Mortgagee’s priority...................................................................................... ..................................................49

Part 24 : MASTER COMMUNITY ADMINISTRATION........................................................................................................ 50

165. Registered Owners and Occupiers Bound by Master Community Declaration................................................. 50

166. Registrar may Issue Orders ............................................................................................................................ 50

167. Form and Variation of Master Community Declaration........................................... .........................................50

Part 25 : MISCELLANEOUS ....................................................................................................................................... 51

168. Words and expressions used in Instruments under Law................................................................................ 51

169. Reference to Instrument is reference to Instrument completed in Approved Form.............. ..........................51

170. Service of notices .......................................................................................................................................... 51

171. Deemed receipt in certain cases.................................................................................................................... 51

172. Registrar’s Directives............................................................................... ......................................................51

173. Contraventions of this Law ..................................................................... .......................................................52

174. Orders by Registrar in relation to breaches of this Law ...................................... ...........................................52

175. DIFCA may make Regulations.......................................................................................................................... 52

Schedule 1............................................................................................................................................................. 54