REAL ESTATE AND MINORS

Option 1:

Registering a ready property in the name of a minor.

If you purchase an existing apartment and wish to register 50% ownership in the name of your minor child, the process is as follows:

Step 1: Signing the Sale and Purchase Agreement (SPA)

The Sale and Purchase Agreement (SPA) is drafted, specifying the ownership structure as follows:

50% in your name

50% in the name of your minor child

The SPA will also state that you, as the parent, act as the legal guardian of the minor’s share of the property.

Your child does not sign the SPA; instead, you sign on their behalf and include the following statement:

"Nordin A..... (parent’s name), acting as the legal guardian of Florine B.... (minor’s name)."

Step 2: Submitting documentation to the Dubai Land Department (DLD)

You must submit the following documents:

Passports and Emirates IDs of both parents and the minor.

If your child does not have an Emirates ID, a legalised birth certificate is required. If the parents also do not have Emirates IDs, a passport will suffice.

A parental declaration confirming consent for the property registration in the child’s name.

The DLD registration application form.

Payment of registration fees (4% of the purchase price + administrative fees).

Step 3: Issuance of the title deed

Once approved by the Dubai Land Department (DLD), the title deed will be issued.

The title deed will state that 50% of the property is under the guardianship of a parent until the minor turns 18.

This means that while the child is the legal owner of that 50%, the parents cannot make any decisions regarding the property without the approval of the Dubai Courts as long as the child is under 18. This is a crucial aspect to consider.

If you ever wish to sell, you can only sell your own 50%, which is generally not attractive to potential buyers. To sell your child’s 50% share, you must go through a court process where the Dubai Courts assess whether the transaction serves the best interest of the minor.

By registering property in your child’s name, you are effectively locking in the ownership structure until they turn 18.

Option 2 Registering an off-plan property in the name of a minor:

The registration of an off-plan property takes place in two phases:

Initial registration with RERA through the Oqood system.

Final registration with the Dubai Land Department upon full ownership.

Step 1: You must first confirm whether your developer accepts a minor as an owner or co-owner. Some developers require an additional declaration.

Step 2: Signing the Sale and Purchase Agreement (SPA)

The SPA must clearly outline the ownership structure as follows:

50% in your name

50% in the name of your minor child

The parent signs on behalf of the minor.

Step 3: Registration in RERA’s Oqood system

The developer submits the property agreement to RERA.

RERA registers the sale and issues a provisional ownership certificate (Oqood contract).

Step 4: Submitting documents to the developer and RERA

Required documents include:

Passports and Emirates IDs of both parents and the minor.

The minor’s birth certificate (only required if there is no Emirates ID).

A guardian declaration confirming the ownership structure.

Step 5: Conversion to a final title deed

Once the project is completed and all payments are fulfilled, the ownership registration is converted from Oqood to a final title deed.

Next: selling, renting, or taking any action regarding a property in a minor's name

For any transaction involving a minor’s share, a court order from the Dubai Courts is required. The process is as follows:

Step 1: Filing a petition with the Dubai Courts

A petition must be submitted to the Personal Status Court in Dubai. The request must demonstrate why the transaction is in the best interest of the minor.

Step 2: Court review

The court assesses whether the transaction benefits the child, which may involve a hearing.

Step 3: Court ruling and next steps

If approved, the court issues a court order.

Without this order, the minor’s share cannot be sold, rented, or mortgaged.

What happens when the child turns 18?

Upon turning 18, the now-adult gains full control over the property and can make independent decisions regarding it.

The guardian status of the parents automatically expires.