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Family ownership of real estate

Mohammed Zakaria Al-Qawasmi

November 29, 2020

Real estate investment is the backbone of family investment portfolios and other portfolios, and it is a long-term investment, and it takes into account the importance of trading these wealth and properties between successive generations, because this investment constitutes stability, compared to other investments, and the head of the family, the founder of family wealth, feels a kind of Relief in protecting the interests of the family, by owning real estate and the financial returns for these relationships.

The real estate investor in the country has become more experienced and mature in dealing with real estate investment, as investments have expanded and grown significantly, and real estate management is no longer easy, which requires the presence of specialized and professional management companies, as well as establishing corporate structures dedicated to owning real estate.

As a real estate lawyer, I have begun to notice that real estate investors are interested in organizing their real estate ownership in a legal and more professional manner, as it is no longer common to register real estate in the names of owners in their personal capacity, but rather companies that are established specifically to own real estate are used, because of the many benefits of this, including the protection of real estate ownership From any personal burdens or obligations that fall on the owner of the property, and thus real estate companies have an independent legal and financial personality, at a time when no obstacle or influence will occur in real estate management, in the event of the death of the founding partner, or any of the other partners.

There are also many options in determining the appropriate legal structure for companies to own real estate, depending on the circumstances and requirements of each owner and each family.

The real estate investor in the country, especially in the Emirate of Dubai, is very lucky, as he has many options and facilities to choose the appropriate company structure for him, and there are many free zones that allow the establishment of (offshore) companies, used for the purposes of real estate ownership without the need to spend Large sums of money to rent offices, hire employees, and thus reduce the cost to the investor.

Another positive facility is the option of establishing companies in the Dubai International Financial Center that applies the (Anglo-Saxon) legal system.

The Dubai legislator has drawn attention to the importance of regulating family ownership, as Law No. (9) of 2020 was issued regarding the regulation of family ownership in Dubai, which helped families organize and protect their property, including real estate owned by them in a legal manner, and created an appropriate mechanism for resolving Family disputes, and created the family property contract, which is considered a governing constitution for the relationship between partners.

Decree No. (23) of 2020 was issued regarding the regulation of the sale of heirs to residential real estate in the Emirate of Dubai, as it is noticeable that the legislator is interested in preserving the social fabric of the family, by organizing the sale of heirs to their residential properties, and ensuring that no harm is done to the elderly, minors and those in need of care.

I think that we are heading in the right direction in terms of keeping up with the requirements of real estate investment, at the same time protecting the family and the social fabric, and ensuring the smooth transfer of wealth between successive generations, as it is clear that the real estate legislative system in the country is developing to ensure the continuation of family ownership, and not disappear upon arrival. To the third generation of the family, which unfortunately happens most of the time.

We have gone through many experiences, and it is important to benefit from the experiences and experiences of other countries that have made great strides in family ownership, and we suggest providing more facilities for family ownership of real estate, especially with regard to reducing fees on the transfer of real estate between relatives up to the third degree, and organizing and clarifying the provisions of the will related to real estate ownership, And to encourage real estate endowment.

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