Ajman Property Law
In part 1 of our Ajman mini series we provided a general Overview of the Ajman Property Market. We established the fact that Ajman is definitely one of the regions in the UAE to keep your eyes peeled on.
Today we will look at Ajman’s new property law to give you more insights into your investment opportunities. Since the property law has been modified to legalize freehold ownership in Ajman, the rules seem much clearer.
Ajman Property Law
Back in 2002 Dubai introduced freehold ownership to property investors which many believe to be one major reason the market exploded in the emirate. HH Sheikh Humaid Bin Rashid Al Nuaimi, Member of the Supreme Council and Ruler of Ajman has now introduced the same for Ajman, making it the second emirate to allow freehold ownership.
The Ajman property law is governed by Decree No 7 and 8, 2008 which regulates the property and land sector within the emirate. It is made up of 34 articles which legalize the process of Ajman property and land ownership both for GCC (Gulf Cooperation Council) and UAE citizens. This also includes companies and public stock within the region.
Non GCC buyers and developers are allowed to own freehold land property within specific areas. These areas have been allocated and approved by the Sheikh. Alternatively, if you are not a citizen of the UAE or Gulf Cooperation Council (GCC) nations, you can also obtain property with a 50 year leasehold that is renewable in designated areas of Ajman.
For those who are concerned about inheritance and the law, you need to be registered with the property register in order to be able to claim property rights of heirs.
The Department of Land and Property is in charge of regulating the approval of land maps, fees, survey areas and property sectors according the new law. It is also the place to go to register property rights and long-term leasing contracts.
Ajman has taken a good slice out of Dubai’s Law No. 8 of 2007 on Guarantee Accounts of Real Estate Development (Escrow Account or Trust Law). This law has ensured that property purchases in the emirate are generally very straightforward and without major incidences.
With the introduction of bank guarantees to help safeguard the investor’s dollar, Ajman has certainly introduced an interesting part in the whole equation of the law. Fuss free investment is always a strong motivation factor for property investors.
This means that investors have to bank these guarantees in order to invest in the emirate. Further to this, this deposited money will need to be used for the project itself only.
The bank will also freeze 5% of the project amount until construction has been completed. After handover, the developers themselves will be responsible to maintain the project for 10 years.
Keep an eye out for part 3 or our Ajman series where we will cover current developments in the emirate as well as infrastructure news.