Property Gifting Preview
Property gifting, also known as a Hiba transfer refer to the addition or removal of a name from a title deed resulting in a subsequent transfer of ownership into the name of another person or entity.
There are several reasons why one may choose to gift property in the U.A.E however the most common ones by far are asset protection and inheritance.
For non-Muslims in particular, Sharia law can prove ambiguous when it comes to settling these kinds of matters, and as such, the process of gifting property removes the legal uncertainty that accompanies this law system in a relatively affordable manner.
Property gifting is also useful in removing a party’s ownership in the event of separation in a divorce settlement or to ensure that the first-degree relative inherits ownership i.e. succession planning. The main reason why Hiba transfers are so popular is because unlike, a property sale —a Hiba transfer benefits from a gratuitous or discounted fee.
For those interested in the gifting process, it is imperative to understand the nuances that come with it in order to take full advantage of its benefits. For example, property gifting can occur only between first-degree relatives, siblings are not considered first-degree relatives when it comes to gift transfers, off-plan properties cannot be gifted, gifting properties that are mortgaged is uncommon but can be done for a higher fee—there are small but impactful details that can make gift processing truly worthwhile.
It is also possible to gift property to and from a company and although this process is slightly more intricate, it is a popular service for those individuals who are interested in protecting their assets and reducing both costs and potential liabilities as part of their business strategy.
Just so you don’t have to worry about it, we have put together a list of documents that you will need to complete a regular Hiba Transfer (Tamleek):
- Original Title Deed
- Affection Plan
- Value Estimation Certificate
- Proof of Kinship (i.e. marriage and or birth certificates)
- Declaration of Grant and Letter of Transfer
- Personal Identification Documents
- Power of Attorney documentation in the event that you are not able to be there physically
Get in touch with one of our specialists at [email protected] or +971 4 559 0114 to find out more about Hiba transfers, Power of Attorney Documentation and how much everything costs. We are here to help!
Last week we discussed Trakheesi. Haven’t heart of it? Click here to find out more.