Dubai announces Decree 23 of 2020 Regulating the Sale of Inherited Residential Properties by Heirs

On 13 August 2020, Sheikh Mohammed Bin Rashid issued Decree 23 of 2020 Regulating the Sale of Inherited Residential Properties by Heirs in Dubai (“Decree 23”).

Decree 23 is applicable to all residential properties located in Dubai (except for residential properties granted under the Mohammed bin Rashid Housing Establishment). It does not make a distinction between properties that are located in designated and non-designated areas for foreign ownership, and is therefore applicable to all nationalities.

Decree 23 aims to protect family members in the event of sale of residential properties that are subject to inheritance orders (specifically senior citizens, minors, bachelorettes, divorcees, widows and individuals with special needs), to ensure that the sale of the property is not detrimental to their rights and interest.

The Dubai Land Department (DLD) is authorised to approve an application of sale submitted by any of the heirs, and transfer title to a purchaser. DLD may also authorise sale of a property by auction (if appropriate). Following a sale, the DLD will distribute sale proceeds to the heirs, in accordance with their individual entitlement pursuant to the inheritance order. In the event of a dispute between the heirs, they may file a claim before the Special Judicial Committee which has exclusive jurisdiction to review and decide on such disputes.

Decree 23 is effective from the date of its publication, and repeals all provisions in any other laws in force that are contradictory to the provisions of Decree 23.

Finally, any dispositions or actions that contradict with the provisions of Decree 23 will be void, shall not be registered in any official record, and shall not create any rights or obligations.

Key Contacts:

Mohammed Kawsmi
Partner, Real Estate
m.kawasmi@tamimi.com

Aruna Mukherji
Associate,Real Estate
a.mukherji@tamimi.com