Rent-To-Own Scheme Exclusive to Dubai Freehold Area
Legal Era|September 2019
The rent-to-own scheme gives an edge to developers by offering them the opportunity to sell their present properties instead of having them sit on the market, pulling down market prices, particularly when supply stays high and demand is restricted.
Rent-To-Own Scheme Exclusive to Dubai Freehold Area

In a fast growing city like Dubai, the rent-to-own scheme has swiftly gained traction amongst aspiring property owners as an alternative option to owning a property, by paying rent under the scheme, which will ultimately be converted to equity.

Article 513 of the Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates stipulates that : “ (1) If the price is deferred or payable in installments, the seller may stipulate that the transfer of ownership to the purchaser be suspended until he pays the whole price, notwithstanding that the goods have been delivered. (2) If the price is paid in full, the transfer of ownership to the purchaser shall operate retrospectively to the time of the sale”.

This article might be considered as the source of the rent-toown scheme concept which enables tenant to pay rent to the owner over a fixed timeframe. The tenant’s accumulated rent is transformed into equity subject to the tenant’s decision to buy the property after the lease expires.

As stated by the Dubai Land Department, the rent-to-own scheme is exclusively limited to freehold areas in Dubai. Moreover, this type of contract is not new to the real estate market, as it has already been implemented by Islamic banks.

この記事は Legal Era の September 2019 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Legal Era の September 2019 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

LEGAL ERAのその他の記事すべて表示
If You Think Positive Covid Is A Big Opportunity
Legal Era

If You Think Positive Covid Is A Big Opportunity

Senior Vice President and Head of Legal, ESSAR CAPITAL, Badrinath Durvasula, holds forth on his professional journey, the essence of leadership, working from home, books and more…

time-read
10+ 分  |
December 2020
PROJECT DEVELOPMENT
Legal Era

PROJECT DEVELOPMENT

JOINT VENTURE TRANSACTIONS

time-read
10+ 分  |
December 2020
NEW ARBITRATION RULES
Legal Era

NEW ARBITRATION RULES

PUBLISHED BY THE LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA) AND INTERNATIONAL CHAMBER OF COMMERCE (ICC)

time-read
6 分  |
December 2020
M&A in the time of COVID and beyond
Legal Era

M&A in the time of COVID and beyond

What is clear for those engaging in cross-border M&A is that countries around the world are becoming increasingly protective of their economies and industries, with new rules being introduced and existing rules being more widely applied

time-read
6 分  |
December 2020
SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD
Legal Era

SWITZERLAND A DIFFERENTIATED APPROACH TO FRAUD

Swiss law interprets the offense of fraud in a special way where in addition to the characteristics of deception and damage as known in many jurisdictions, a qualified lie, i.e. a malicious approach, is required

time-read
5 分  |
December 2020
JOINT VENTURE DISPUTES MEDIATING
Legal Era

JOINT VENTURE DISPUTES MEDIATING

Mediation has shown itself to be a powerful tool for bringing a speedy and effective end to crossborder disputes while preserving the commercial relationship between them.

time-read
7 分  |
December 2020
Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA
Legal Era

Recognition of HONG KONG INSOLVENCY PROCEEDINGS IN MAINLAND CHINA

A TEST CASE IN THE MAKING?

time-read
8 分  |
December 2020
CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE
Legal Era

CONFIDENTIALITY IN ARBITRATION: RECENT DEVELOPMENTS IN SINGAPORE

Two recent developments in Singapore case law and legislation reflect a willingness to preserve confidentiality related obligations in all arbitrations

time-read
5 分  |
December 2020
ESSENTIAL GOODS SERVICES UNDER IBC
Legal Era

ESSENTIAL GOODS SERVICES UNDER IBC

WHAT DOES IT ESSENTIALLY MEAN?

time-read
6 分  |
December 2020
A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE
Legal Era

A BIDEN ADMINISTRATION'S NEW VISION FOR THE AMERICAN WORKPLACE

A LOOK AT THE KEY CHANGES PRESIDENT-ELECT BIDEN IS LIKELY TO MAKE ONCE HE TAKES OFFICE

time-read
7 分  |
December 2020