Usufruct and musataha: owning the right, not the land

Not every Dubai property document is a freehold title deed. In some areas, and for some older or developer projects, buyers receive a usufruct deed instead. A usufruct right (in DLD's words, a long-term lease) lets the holder use and benefit from someone else's property for a fixed term of up to 99 years. A musataha right lets the holder build on someone else's land and use the building for up to 50 years. Both are registered at DLD, appear in the property record, and can usually be sold, mortgaged, leased to own or amended during their term. Trustee offices and DLD's transaction data sometimes call these 'development' transactions. Key points for buyers: check the end date of the right, because the right ends then and the property goes back to the land owner; the price, bank financing and resale value depend on the years left. DLD fees for registering a long-term lease are 2% of the rental value from the owner and 2% from the lessee; a musataha registration is 1%; title deed, map, knowledge and innovation fees and the trustee fee are added. For off-plan units the developer registers the initial usufruct through the Oqood portal. Our staff can read your deed and tell you which kind of right you hold.