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Joint Ownership

Joint ownership occurs when several individuals share ownership of a property, and their stakes vary depending on the method of acquisition. Inheritances often lead to joint ownership, with the property distributed among heirs. Additionally, a will specifying shared ownership between two individuals can establish this arrangement. Grasping these dynamics is crucial for successfully navigating joint ownership scenarios.

If two people buy a property together and the agreement doesn’t state their shares, they’ll each get an equal share. Ownership can also come from different situations, like seizure, accession, pre-emption, and prescription. Understanding these terms is key when co-owning property.

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Joint ownership according to UAE law

Delve into Article 1152 of the UAE Civil Transactions Act, which outlines joint ownership. When two people acquire items without defining shares, they become co-owners, with shares usually divided equally. This rule doesn’t affect each heir’s inheritance share. Understanding these guidelines is key for shared ownership situations.

Q: Will joint ownership give the right of ownership?
A: Yes, because all ownership corners are available such as the right to use, utilization, and disposal provided that same shall not prejudice the rights of the other co-owners.

Q: Is this type of ownership individual or common?
A: In the light of the definition of the joint ownership, it becomes evident that this ownership is intermediate between the separate absolute ownership and the joint ownership because the share of the co-owner is common in each and every component of the property and this makes it different from the absolute ownership. The commonly owned object is not owned by all co-owners but pro-rata to their respective shares and this makes a distinction between the joint ownership and common ownership. This intermediate ownership constitutes an individual ownership and a type thereof.

Termination of the Joint Ownership and Reasons thereof

The joint ownership is a temporary status that will come to an end and the joint ownership will expire by division as a main reason for termination or it may terminate by agreement when a co-owner sells its common share to another, both co-owners sell all shares to another purchaser, one co-owner inherits the other, or when a co-owner recommends, by virtue of a will, that his/her share shall be transferred to the other.

What does “division of common property” mean?

To divide common property, there are two ways: mutual agreement or legal action. Mutual agreement needs approval from all co-owners, while legal division can be initiated by one shareholder, even if others disagree. The rule is that the division shouldn’t affect the property’s use.

If dividing the property isn’t possible, a co-owner can sell their share to another or ask the court to sell it through a public auction. The auction proceeds are then distributed among co-owners based on their shares in the property. Understanding these options is crucial for managing shared property.

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FAQ about Joint Ownership in the UAE

1-Can foreigners buy property in UAE?

In Dubai, freehold sites are eligible for foreign ownership. Foreigners (those who do not reside in the UAE) and expatriate citizens may acquire usufruct rights, freehold ownership rights, or leasehold rights for up to 99 years.

2-Can you co own a property in Dubai?

Real estate in Dubai can be purchased in joint names.

The percentage ownership each investor has in a property can typically be specified when buying in joint names, and that information will appear on the title deed that the Land Department issues when the transfer is complete.

3-How do you show joint ownership?

To prove you and your partner own the property, show evidence of joint ownership using documents like mortgage statements or lease agreements. Remember, district courts handle claims for property division, regardless of the property’s value. Understanding this process is crucial when dealing with shared property.

Based on joint ownership provision cases, its always the best to consult a leading law firm. Khairallah Advocates & Legal Consultants, one of the best law firms in UAE, have years of experience in dealing with joint ownership related cases can help you out in any of the critical situations and make you back on track.