Real Estate
2. Kinds of Property Rights
According to general understanding, a freehold title provides the most superior form of property ownership. A freeholder is considered the absolute owner of the land and the buildings on the land. Hence, the freeholder is allowed to freely use, mortgage, inherit or dispose of the property, only being bound by the laws and regulations as well as the rights of third parties prevailing. Unless transferred, the freeholder enjoys his right in perpetuity.
Long-term leasehold is a right derived from freehold. The main difference is that the leasehold right is limited by time and subject to a superior title. In the UAE, the general term of a long-term lease is 90 or 99 years. Traditionally, the rent for the term of the lease is a one-time payment made at the beginning of the lease, i.e. with the handing over of the property.
In general, any individual or legal entity of any nationality may buy or lease a property in one of the selected areas. Particularly popular is the acquisition of property through offshore companies.