Disposition of Common Real Estate in the UAE Legislation

10.2478/bjlp-2023-00000182

Abstract

Disposal of common real estate ownership may be conducted collectively by all the partners, or by the majority of the partners, or individually by one of the partners, and here the partner has the right to dispose of its common share in all forms. The study aimed to identify the common real estate ownership, the legal nature of co-partner’s right, the rule on the partner's disposal of its common share alone, the rule on the partner's disposal of a separated part of the common share, the result of that disposal before and after the division, and finally, and the rule on partners’ disposal of the common real estate. The study came to several conclusions, chief among them being that it is acceptable for partners to agree to dispose regardless of the results and to divide the common money anyway they see right. However, if a partner disposes of what exceeds its share, its disposal shall not be carried out against its partners. Regarding the rule on a partner to dispose of a separate portion, it shall depend on the result of the division, so the rule before the division is one thing, and after the division is another. Accordingly, the study recommended stipulating that partner shall inform its partners before disposing of its common share within a reasonable period, to give them the opportunity to choose between division or executing the disposal in their favor, as well as providing for the compensation of the aggrieved partner from the disposal of its partner, without limiting that to the general legal provision in civil liability.