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Dubai: Is it legal to co-own property with my friend?
A KT reader has asked how co-ownership of property works and whether he can own it with his friend
- PUBLISHED: Sun 4 May 2025, 8:35 AM
Question: I wish to purchase property in Dubai with my friend. Is co-ownership legal in Dubai? Could you explain how it works?
Answer: A unit jointly owned by two or more persons may not be subdivided amongst them unless that subdivision is permitted under the Master Community Declaration; the Dubai Land Department (DLD) approval is obtained; and the necessary licenses are granted by the competent authority. This is under Article 13 of the Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai.
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“A Unit jointly owned by two (2) or more Persons may not be subdivided amongst them unless that subdivision is permitted under the Master Community Declaration; the DLD approval is obtained; and the necessary licenses are granted by the Competent Authority.”
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Article 14 of Jointly Owned Property grants co-owners a pre-emption right to purchase another co-owner’s share if it is offered for sale to a third party / non-owner. This right is proportional to each co-owner's existing share.
A co-owner of a Unit shall have a pre-emption right to purchase another co-owner’s share in the Unit if that share is offered for sale or disposition to a non-owner. Where more than one (1) co-owner exercises this right, each of them shall be entitled to purchase a share proportional to his existing share in the Unit.
The pre-emption right prescribed under paragraph (a) of this Article shall not be established in case of sale or disposition of the co-owner’s share to any ascendants, descendants, spouse, relatives up to the fourth degree, or in-laws up to the second degree.
Furthermore, Article 15 of the Jointly Owned Property outlines the procedures for exercising this pre-emption right, including notification requirements and timelines.
When a co-owned property is subdivided, the DLD’s registration fee must be paid by the co-owners in proportion to their ownership shares prior to the subdivision, unless they agree otherwise. This is as per Article 3 (4) of the Executive Council Resolution No. (30) of 2013 Approving Fees of the Land Department, “The fees for registering the subdivision of co-owned Real Property shall be paid by the co-owners in proportion to their respective shares prior to the subdivision”.
While co-ownership of property in Dubai is legally permissible under the applicable laws, you and your friend may familiarise yourselves with the legal requirements and implications, particularly concerning subdivision rights, pre-emption provisions, and registration fees.
It may also be prudent for co-owners to enter into a written co-ownership agreement that clearly sets out each party’s ownership percentage, financial obligations, and rights relating to the property, that clearly outlines each party’s ownership percentage (as recorded in the title deed), as well as their respective responsibilities, rights, and procedures for future sale or dispute resolution.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
