A council resolution refers to the official decision or decree issued by the Abu Dhabi Executive Council. These resolutions play a major role in shaping and implementing policies across various sectors, including real estate. From property ownership regulations to municipal fees, the Abu Dhabi council resolutions address a wide range of issues within the real estate market.
Abu Dhabi Executive Council Resolutions for the Property Sector
Over the years, the Abu Dhabi Executive Council has issued several resolutions to promote transparency, streamline transactions and maintain market stability. Key resolutions include:
Executive Council Resolution No. (64) of 2010: Real Estate Ownership
The purpose of Executive Council Resolution No. (64) of 2010 is to regulate the property buying process in Abu Dhabi. The core objective of the resolution is to ensure transparency and streamline the transaction processes. The key provisions of the resolution are:
- UAE nationals and GCC citizens will have the right to own properties in the Abu Dhabi Investment Zones. Expats, on the other hand, can own apartments and floors in the zone.
- In Investment Zones, expats will have musataha (up to 50 years), usufruct (up to 99 years) and long-term ownership rights.
- All property transactions must be registered with the Real Estate Register.
- Owners can sell, buy, lease or mortgage properties as per the Abu Dhabi Real Estate laws and municipal regulations.
- Owners’ or usufructuaries’ associations will manage common areas, utilities, fees and maintenance issues in multi-unit properties.
- Inheritance of real estate, usufruct, Musataha or long-term lease rights must be registered in the names of the heirs upon submission of a decree of distribution.
- For properties outside Investment Zones, if an heir is an expat, other heirs may purchase their share at market value or pursue legal action to sell the share and distribute proceeds.
- The application to register a mortgage contract on a property must be submitted to the registrar, signed by both the mortgagor and mortgagee (or their representatives), along with the mortgage contract and documents proving the mortgagor’s ownership or right over the property.
Executive Council Resolution No. (4) of 2011: Lease Contract Registration & Renewal
The lease contract registration in Abu Dhabi is defined by the Executive Council Resolution No. (4) of 2011. The Resolution focuses on the following provisions:
- It is necessary to register all the lease contracts (new or old) with the concerned municipality.
- Municipalities must offer a standard lease contract form and maintain a database which includes information on properties and tenants.
- A committee can be formed to handle unique cases related to lease registrations.
- Landlords must register all types of lease contracts, renewals and amendments to the municipality.
- In case the landlord fails to comply, tenants can approach competent committees to validate the signature and registration.
The service fee for lease registration and renewal as per the Resolution is:
- Registering lease contract: AED 100
- Amending lease contract by landlord or tenant: AED 50
- Renewing lease contract: AED 100
- Registering real estate data: AED 1,000
- Registering unit data or amendments: AED 5 per unit
Executive Council Resolution No. (127) of 2019: Municipal Service Fee
The Executive Council Resolution No. (127) of 2019 regulates the service charges of lease registration, rent of government-leased lands and other processes.
- The rent of government-allocated lands has fixed rates per square foot: Abu Dhabi City – 0.75 AED (75 Fils), Al Ain – 0.50 AED (50 Fils), Al Dhafra – 0.25 AED (25 Fils).
- Tenants of government-leased lands can sublease, after the approval of the municipality and proper registration.
- The service fee on lease contracts collected by municipalities ranges between 5% to 10% of the contract value.
- Registration fees for musataha contracts, except for industrial lands for UAE nationals, can be paid in instalments over the contract duration.
As per the Resolution No. (127) of 2019, the fees schedule is:
- Long-term lease or usufruct contracts will be 1% of the contract value.
- The Musataha contract of commercial or investment land will be 2% in vital areas and 1% in developing areas.
- Recreational/public/private/agricultural registration fee will be 2% (max AED 500,000) in vital areas and there will be no fees in developing areas.
- Industrial land registration fee will be 1% (max AED 1,000,000)
FAQs
Who issues a council resolution in Abu Dhabi?
A council resolution is an official decision issued by the Abu Dhabi Executive Council, the main leadership authority for the Abu Dhabi Government.
How do Abu Dhabi Council Resolutions protect property buyers and developers?
The council resolutions establish clear ownership rules, regulate transactions and ensure transparency in registration and contracts, safeguarding the rights of buyers and developers.
Where can I find official Abu Dhabi Council Resolutions on real estate?
The council resolutions are published in the Abu Dhabi Official Gazette, available on the official website of the Government of Abu Dhabi.
What role do owners’ committees play under Abu Dhabi Council Resolutions?
Owners’ committees manage shared areas, utilities, maintenance and fees in multi-unit properties, ensuring proper governance and compliance with council regulations.
These are some of the significant Abu Dhabi council regulations for the real estate market that have shaped the real estate market over time. By amending laws and regulations, the council has ensured market stability and created an environment that attracts investors from around the world. From standalone villas to studios, a wide range of properties for sale in Abu Dhabi is available, offering diverse options for investment.
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