Completion of construction, repayment of the loan, and approval of “Abu Dhabi Housing” are conditions for disposing of “grant lands”

The day before yesterday, banks operating in the country received a circular from the Department of Municipal Affairs and Transport in Abu Dhabi prohibiting the disposal of residential lands granted by the government, whether by sale, rent, or any other means of disposal, unless several conditions are met, the most important of which is the completion of construction work and repayment of the housing loan granted by the government. Obtaining the approval of the Abu Dhabi Housing Authority and First Gulf Bank, with the addition of a new condition, which is the provision of suitable alternative housing.

It is noteworthy that the trading ban was previously limited in Abu Dhabi to popular homes that were handed over to citizens ready for habitation, as it is not permissible to dispose of them until after the death of the original owner and the transfer of the home to the heirs, and on the condition of obtaining permission from the court or approval from the Executive Council in cases other than death. .

The circular from the Department of Municipal Affairs and Transport in Abu Dhabi was based on a letter issued by the Abu Dhabi Housing Authority regarding old public housing and the disposition of grants. The authority explained that “with regard to the disposition of residential land granted by the government, the disposition of residential land granted by the government has been prohibited, whether By sale, lease, or by any means of disposal, unless several conditions are met.”

She stated that the first of these conditions is to complete construction work on residential land and obtain all necessary licenses for occupancy, including a building completion certificate and other licenses. The second condition is to repay the housing loan granted by the government in the case of government financing for construction, and to obtain the approval of the Abu Dhabi Housing Authority and First Gulf Bank to redeem the mortgage. For residential land.

She pointed out that the third condition is related to providing suitable housing for the family and an alternative to the housing that is intended to be disposed of as a property and not as a rental or otherwise, as suitable housing means that it is a building that is complete from a structural standpoint and suitable for living in it in a safe and stable manner, and has an independent entrance that provides privacy to its residents and meets their requirements and needs. The basic necessities, equipment, and facilities that a person needs to ensure the achievement of tranquility, personal security, natural health, and social happiness for himself and his family.

The circular, a copy of which was obtained by Emirates Today, addressed, in part, the requirements for the permissibility of demolishing old housing in the Emirate of Abu Dhabi and re-allocating the land on which the residence had previously been built for the same owner, and as residential land if three conditions are met.

The circular explained that the first condition is that the dwelling must be at least 25 years old, the second condition is obtaining the necessary permits for demolition from the relevant municipality, and the third is that the old dwelling be completely demolished with no structures remaining on the residential land after the demolition process.

It is noteworthy that about 60% of citizens’ real estate financing depends on mortgages for homes built on grant lands.