EPISODE 16

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 childChild and parentHusband and wifeProof 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 EligibilityThe 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 DocumentationIn 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 deedEmirates IDs and passportsRelationship evidenceDeveloper NOC (where required)DLD valuationHiba transfer documentationA compliant Power of Attorney may be used where attendance is not possible.Important RestrictionsA 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 PropertiesGift transfers involving mortgages generally follow one of three routes:Mortgage settlement before transferMortgage assumption by the recipientTransfer followed by new financingBank 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 TakeawayHiba 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.This version is approximately 1,750 characters.