Welcome back to The Conveyance Desk.

In our previous discussion, we covered off-plan resale transactions. Today, we look at one of the most misunderstood property transfer routes in Dubai: the Hiba transfer, commonly known as a property gift transfer between eligible family members.

A Hiba transfer allows ownership of a property to move from one person to another without a sale taking place and without any purchase price being paid. The transfer is registered through the Dubai Land Department, and a new title deed is issued in the recipient's name.

Unlike a standard property sale, which attracts a 4% DLD transfer fee, eligible Hiba transfers benefit from a significantly reduced fee of 0.125% of the assessed property value, subject to applicable minimums and administrative charges.

The key requirement is eligibility.

Hiba transfers are generally available between first-degree relatives, including parents and children, children and parents, and between spouses. Documentary proof of the relationship is required, and overseas-issued documents must usually be properly attested and translated into Arabic where necessary.

Dubai also permits certain transfers involving wholly owned companies. In some cases, an individual may transfer property to a company they fully own, or a wholly owned company may transfer property to its sole shareholder, provided the ownership structure can be clearly demonstrated through the company's constitutional documents.

Not every property qualifies for a Hiba transfer. The property should generally have a registered title deed and meet the relevant DLD requirements. Off-plan properties usually cannot be gifted until a title deed has been issued following completion and handover. Mortgaged properties may also require lender approval and additional documentation before the transfer can proceed.

One important point often overlooked is that a Hiba transfer is generally intended to be permanent. Once ownership has been transferred and registered, the recipient becomes the legal owner of the property. Reversing the transfer is not a simple administrative process and may require agreement between the parties or court involvement.

The documentation required will typically include:

• Original title deed • Emirates IDs and passports of the parties • Relationship evidence • Developer NOC or eNOC where applicable • Service charge clearance • DLD valuation documentation • Corporate documents for company-owned properties • Power of Attorney if a representative is acting on behalf of either party

Because eligibility, relationship evidence, company structures, mortgages, and DLD requirements all play an important role, it is important to confirm the correct transfer route before proceeding.

For many families, a Hiba transfer can be an efficient way to transfer ownership between eligible relatives while benefiting from the reduced transfer fee available under the applicable framework.

In our next discussion, we'll look at developer NOCs, service charges, eNOCs, and the role they play in Dubai property transfers.

This was The Conveyance Desk.