Citizens and residents of the UAE, as well as investors from foreign nations, are showing a great interest in the real estate market. As a result, one commonly asked question is: What is the legal age for owning property in the UAE? For individuals and families interested in investing in the UAE real estate market, it is important to understand the relevant laws and regulations.
According to UAE Civil Transactions Law (Federal Law No. 5 of 1985) the age of majority is 21 years old for the purposes of entering into a contract, including the purchase of property. A person must be of full legal capacity in order to enter into a contract. In accordance with Article 85 of the Civil Transactions Law, which states that full legal capacity is reached at age 21, an individual must be at least 21 years old in order to be permitted to independently purchase and own real estate in the UAE.
Legal Capacity Under the UAE Civil Transactions Law -Federal Law No. 5 of 1985.
Legal capacity means a person’s ability to enter into contracts and manage one’s own affairs independently. The UAE Civil Transactions Law categorizes capacity in terms of property transactions based on different age groups. These are the following categories:
- Full Capacity (Article 157): Everyone has the ability to enter into contracts unless the law specifies otherwise.
- Minors (Article 158): The minor under the age of discernment has no right to dispose of his property, and all such acts are considered void.
- Discerning Minors (Articles 159-161): Minors between the ages of 7 and 18 (lunar years) may engage in certain financial transactions beneficial to them, however property related transactions require the approval of a legal guardian or tutor. Guardians may authorize the minor to manage property once they turn 18 lunar years, subject to court approval.
- Authorised Minors: When a minor reaches the age of 18 years old, they can manage property under guardianship or with permission from the court and under supervision for some minor independence.
Age of Majority and Ownership of Property under the UAE Personal Law -Federal Law No. 28 of 2005.
Additionally, the UAE Personal Status law specifies the age at which an individual reaches full legal capacity. In accordance with Article 172 of the personal status law, the age of majority is stipulated at 21 lunar years, and once this age is reached, the individual is granted the full capacity to own and manage the property.
- Property Tutorship and Guardianship: Articles 178 to 192 state that the tutor, who is usually the father or a guardian appointed for him, the tutor is responsible for managing the property of minors under the age of 21. Tutors should manage and maintain the minor’s property, however any dispositions, including sales and leases, should be approved by the court.
- Court Permission: The court may grant permission to minors to engage in property transactions before they reach the age of majority. In order to protect their interests, the law also permits individuals between the ages of 18 and 21 to engage in property transactions under court supervision.
Furthermore, foreigners can also own property in designated freehold areas, especially in Dubai and Abu Dhabi, including other emirates. The minimum legal age for a foreign buyer to purchase and own a property is 21 years, similar to the UAE nationals. However, as stated earlier, minors can also own property through guardianship arrangements in accordance with UAE laws.
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