Ajman Freehold Property Law

Ajman under the aegis of His Highness Sheikh Humaid Bin Rashid Al Nuaimi, Ruler of Ajman and member of the Supreme Council, opened up its freehold property sector to foreign nationals in 2004 and became the 2nd UAE emirate to do so. Ajman property law is regulated under Decrees No 7 and 8, 2008 which were put in place to regulate the property and land sector within the Emirate of Ajman. The regulation consists of 34 articles which set out to legalize the process of Ajman property and land.

Freehold Specifics

Non-GCC (Gulf Cooperation Council) investors, home buyers and property developers are all allowed to own land and property on a freehold basis within specific areas of Ajman. These areas have been allocated and approved by the Sheikh. It is also possible to obtain property on a 50-year lease that is renewable, in other designated areas of Ajman. Registration within the Ajman property register is essential to ensure that your property investment in Ajman is safe, secure and it will be possible to pass the property on to your successors through a will. The regulation and approval of land maps, fees, survey areas and property sectors are undertaken by The Department of Land and Property according the new law. It is also where you should register your property rights and long-term leasing contracts.

Investor securities

To buy property in Ajman is now very straightforward, as Ajman has modified Dubai’s Law No. 8 of 2007 on Guarantee Accounts of Real Estate Development (Escrow Account or Trust Law). It ensures that Ajman property purchases can now be conducted easily and without any major problems. The introduction of bank guarantees has helped to safeguard the investor’s capital; showing that Ajman has certainly streamlined the buying and investment process for property in the Emirate. This is always a factor considered by both private and institutional property investors. The law means that property developers have to spend client’s funds ONLY on that development for which they are supposed to be for and the money cannot be used for anything else. This is a very nice addition to the security of investment into Ajman properties. The bank will also hold back and essentially freeze 5% of the total project funds until completion of the building. After handover to the new owner, the developers themselves will be responsible for the maintenance of the building for the next 10 years.