Transferring property ownership in Sharjah is a process that involves various steps, legal requirements, and documentation.
Whether you’re buying, selling, or gifting property, understanding the nuances of the process is crucial to ensure a smooth and legally compliant transfer.
Not only UAE nationals, butย expats can also buy a property in the UAE without any hassle. You can easily own land in the UAE regardless of nationality after completing the required documentation.
This guide will walk you through the essential steps and considerations when transferring property ownership in Sharjah.
Overview of Property Ownership Transfer in Sharjah
As per the new property law, the Sharjah Executive Council (SEC) announced that there is no restriction on buying a property in Sharjah and anyone can own it. The SEC meeting was led by His Highness Dr Sheikh Sultan bin Muhammad bin Sultan Al Qasimi โ the Crown Prince and Deputy Ruler of Sharjah. The decision was made to nurture the real estate sector of Sharjah and welcome foreign investors to the Emirate.
Importance of Understanding the Process
Navigating the property transfer process in Sharjah can be complex, especially if you’re unfamiliar with the local regulations. Knowing the correct procedures is vital to avoid delays and legal complications, whether you’re transferring ownership within your family or to a new buyer.
Legal Framework Governing Property Transfer
Property transfers in Sharjah are governed by specific laws and regulations designed to protect the rights of both the buyer and the seller. The Sharjah Real Estate Registration Department oversees the transfer process, ensuring that all legal requirements are met before the transfer is completed.
The Law No. (2) of 2022 issued on the amendment of Law No. (5) of 2010 by the Supreme Council Member and Ruler of Sharjah โ His Highness Dr Sheikh Sultan bin Muhammad Al Qasimi on the registration of property in Sharjah.
As per the new law, Article (4) of Law No. (5) of 2010 will be replaced by the following amendments.
- The right to own a property in Sharjah is limited to the UAE citizens of the Cooperation Council.
Besides, the right of Sharjah real estate ownership may be granted to other nationalities as per the following rules:
- In Sharjah, complete property ownership for every nationality is allowed with the agreement of the current Ruler.
- Transferring the property is allowed to inheritance by a legal notification.
- The property transfer is allowed to the first-degree relatives assigned by the owner.
- Ownership in real estate projects and developments is allowed as per the rules set by the Council.
Also, the text of Article (7) of Law No. (5) of 2010 will be replaced by the new terms. As per the provisions of Article No. (4) of this Law, the owner of the property in Sharjah will abide by the following laws:
- The legal owner of a property must inform the Real Estate Registration Department In case of any changes in the property in Sharjah. It also includes the increase or decrease of partnersโ shares, trade name, transfer of ownership, or any other legal change of the ownerโs right.
- The owner is also abiding to correct the contrary situation in case of adding more partners or transferring the ownership to a person who is not permitted to own property in the UAE.
This is all about the new rules for buying property in Sharjah. There are several benefits of buying a property here since you can enjoy a tax-free income once you rent your residential property in Sharjah. Before you put your property on rent, make sure you know the Sharjah Municipality Tenancy Laws and Rules.
Pre-Transfer Preparations
Before initiating the property transfer, several preparatory steps must be taken to ensure that the process goes smoothly.
Verify Property Ownership
Importance of Title Deed
The title deed is the most crucial document in any property transfer. It serves as proof of ownership and must be free of any disputes or claims. Ensure that the title deed is accurate and up-to-date before proceeding with the transfer.
Checking for Encumbrances or Liens
Before transferring ownership, it’s essential to check for any encumbrances, such as mortgages, liens, or other claims on the property. Any outstanding debts must be settled before the transfer can take place.
Gather Necessary Documentation
Identification Documents
Both the buyer and seller must provide valid identification documents, such as passports and Emirates IDs, to verify their identities.
Sales Agreement or Contract
A legally binding sales agreement or contract outlining the terms of the sale must be prepared and signed by both parties.
No Objection Certificate (NOC)
If the property is within a development managed by a developer, a No Objection Certificate (NOC) from the developer is required to proceed with the transfer.
Engage a Certified Real Estate Agent
Role of the Agent in the Transfer Process
A certified real estate agent can provide invaluable assistance throughout the transfer process, from preparing the necessary documents to ensuring that all legal requirements are met. They can also help navigate any challenges that may arise during the transfer.
The Transfer Process
Once the pre-transfer preparations are complete, the actual transfer process can begin.
Initiating the Transfer
The transfer process starts with submitting an application to the Sharjah Real Estate Registration Department. This application must include all the necessary documentation, such as the title deed, identification documents, and the sales agreement.
Fees and Charges Involved
Various fees are associated with the property transfer, including administrative fees, transfer fees, and any applicable taxes. These fees must be paid before the transfer can be completed.
Attending the Appointment at the Sharjah Real Estate Registration Department
Scheduling the Appointment
An appointment must be scheduled at the Sharjah Real Estate Registration Department to finalize the transfer. This appointment is crucial for verifying the documents and completing the transfer process.
What to Expect During the Appointment
During the appointment, both parties will need to be present to sign the necessary documents in the presence of an official. The official will verify the documents, confirm the payment of fees, and oversee the transfer of ownership.
Finalizing the Transfer
The final step in the transfer process involves signing the transfer documents in front of the official at the Sharjah Real Estate Registration Department.
All transfer fees must be paid before the transfer is finalized. These fees are typically a percentage of the property’s value and are paid to the Sharjah Real Estate Registration Department.
Receiving the New Title Deed
Once the transfer is complete, the new owner will receive a title deed in their name, officially making them the property owner.
Special Considerations
Certain situations require special consideration during the property transfer process.
Transfer of Property Between Family Members
Differences in Process
When transferring property between family members, the process may differ slightly from a standard sale. Family transfers may be subject to different fees or require additional documentation.
Additional Documentation Required
Additional documents, such as proof of relationship, may be required when transferring property between family members.
Transfer of Mortgaged Property
Coordination with the Lender
If the property is under mortgage, the transfer process must be coordinated with the lender. The lender must provide a NOC before the transfer can proceed.
Settlement of Mortgage Prior to Transfer
In most cases, the mortgage must be settled before the transfer can take place. This may involve paying off the mortgage or transferring the mortgage to the new owner.
Post-Transfer Steps
After the transfer is complete, there are several important steps that the new owner must take.
Update Utility Services
Electricity and Water Services
The new owner must update the utility services, such as electricity and water, to reflect their ownership. This typically involves contacting the relevant utility providers and providing them with the new title deed.
Municipality Services
In addition to utility services, the new owner must update any municipality services, such as waste collection or property taxes, to ensure that these services are billed correctly.
Notify the Relevant Authorities
Tax Authorities
The new owner must notify the relevant tax authorities of the change in ownership to ensure that property taxes are billed to the correct person.
Homeownersโ Association
If the property is part of a development with a homeownersโ association, the new owner must notify the association of the change in ownership.
Common Mistakes to Avoid
Several common mistakes can delay or complicate the property transfer process.
Incomplete Documentation
One of the most common mistakes is failing to provide all the necessary documentation. Ensure that all required documents are gathered and submitted to avoid delays.
Not Verifying the Property Title
Failing to verify the property title before initiating the transfer can lead to legal disputes or complications. Always ensure that the title is accurate and free of any claims.
Failure to Settle Outstanding Debts or Liens
Any outstanding debts or liens on the property must be settled before the transfer can proceed. Failure to do so can result in the transfer being delayed or canceled.
Transferring property ownership in Sharjah requires careful preparation, attention to detail, and compliance with local laws. By following the steps outlined in this guide, you can ensure a smooth and legally compliant transfer process. Whether you’re transferring property within your family, selling to a new buyer, or dealing with a mortgaged property, understanding the process is key to avoiding complications and ensuring a successful transfer.
FAQs
What are the costs associated with property transfer in Sharjah?
The costs associated with property transfer in Sharjah include administrative fees, transfer fees, and any applicable taxes. These fees are typically a percentage of the property’s value and must be paid before the transfer can be completed.
Can I transfer property ownership without a real estate agent?
While it’s possible to transfer property ownership without a real estate agent, having a certified agent can simplify the process and help avoid potential pitfalls.
How long does the property transfer process take in Sharjah?
The property transfer process in Sharjah can take anywhere from a few days to a few weeks, depending on the complexity of the transaction and the efficiency of the documentation.
What happens if there is a dispute during the transfer process?
If a dispute arises during the transfer process, it may delay the transfer until the issue is resolved. It’s essential to ensure that all documentation is accurate and that both parties agree to the terms of the transfer.
Can I transfer property ownership if the property is under mortgage?
Yes, property ownership can be transferred if the property is under mortgage. However, the mortgage must typically be settled or transferred to the new owner before the transfer can be completed.
