Welcome back to The Conveyance Desk.

In Episode 15, we covered off-plan resale. Today we're looking at Hiba transfers—the transfer of property ownership by gift between eligible family members.

A Hiba transfer allows ownership to move from one person to another without any sale price being paid. The donor gives up ownership, the donee receives ownership, and a new title deed is issued by the Dubai Land Department (DLD).

The key benefit is the reduced DLD transfer fee of 0.125% of the assessed property value (minimum AED 2,000), compared with the standard 4% transfer fee on a sale.

Who Qualifies?

Hiba is generally available between:

• Parent and child
• Child and parent
• Husband and wife

Proof of relationship is mandatory and may require attestation and Arabic translation if issued outside the UAE.

DLD also permits gifts between an individual and a wholly owned company, provided sole ownership can be demonstrated through corporate documents.

Property Eligibility

The property must have a valid title deed and be located in a designated freehold area.

Off-plan properties generally cannot be gifted until title deed issuance. Mortgaged properties may be transferred, but lender approval and mortgage arrangements are required.

Costs and Documentation

In addition to the reduced DLD fee, there may be trustee fees, title deed fees, valuation charges, map fees, developer NOC fees, and administrative costs.

Typical documents include:

• Original title deed
• Emirates IDs and passports
• Relationship evidence
• Developer NOC (where required)
• DLD valuation
• Hiba transfer documentation

A compliant Power of Attorney may be used where attendance is not possible.

Important Restrictions

A property that has already benefited from a Hiba transfer may not qualify for the reduced fee again. Future transfers could be assessed at the standard transfer rate depending on DLD requirements.

Mortgaged Properties

Gift transfers involving mortgages generally follow one of three routes:

• Mortgage settlement before transfer
• Mortgage assumption by the recipient
• Transfer followed by new financing

Bank approval is required in each case.

Is a Hiba Reversible?

In most cases, no.

Once registered, a Hiba transfer is generally irrevocable. Reversal usually requires a court order or mutual agreement followed by a new transfer process.

Key Takeaway

Hiba is a valuable route for family property transfers and estate planning, offering substantial fee savings compared to a standard sale. However, eligibility, documentation, and DLD requirements are strict, making proper planning essential.

In the next episode, we'll cover developer NOCs, service charges, eNOCs, and the reasons a transfer may be delayed.

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