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legal gaps that let possessors take ownership of properties

In many countries, there are legal gaps that let possessors take ownership of properties.

Posted on April 18, 2024May 14, 2024 by Hesham El Samra

On March fourteenth of last year, police in New York discovered the body of Nadia Vettel, a businesswoman who had been reported missing. She was murdered, to take over her home using a loophole in the “American possession law.”

Recent events involving squatters have brought attention to New York’s possession laws. In New York State, if someone lives in a home for 30 days, they are considered tenants and landlords must go through a legal eviction process in court to remove them and their belongings.

Numerous lawmakers are currently pushing for amendments to New York’s possession laws.

New York State Senator Mario Mattera has proposed a set of draft laws that would enable the police to swiftly remove individuals from residential properties “upon a complaint by the landlord and without any involvement from the court,” as stated in a press release from his office.

The possession law is present in numerous countries worldwide and permits anyone to claim ownership of a property if they reside in it for a specific period without objection from the owner. However, in some Arab countries like the UAE, there are no legal protections for intruders.

Possessors might take over abandoned or neglected properties in certain areas, but this can lead to an increase in crime rates and social issues. For instance, in 2015, a group of artists and militant politiques in the Netherlands occupied a vacant government building, declaring it an independent state for libertarians. This incident triggered a national discussion about property owners’ rights.

Ratmir Proskornov, the head of the international legal practice at Upper Case Legal, stated in an interview with “CNN Economics” that “intrusion is not common in the UAE and other countries in the Middle East and North Africa.” He also mentioned that “there is no law in the UAE that allows adverse possession, which protects squatters.”

He further explained that in many other countries, the process of claiming possession is not straightforward. The individual seeking possession must have occupied the property openly and used it, such as by creating a garden on a vacant piece of land and consistently maintaining it for years.

Property owners can remove possessors by initiating a lawsuit or obtaining a court order. However, in some countries, owners may have to go through a lengthier process to establish their ownership.

Hesham El Samra, a senior legal advisor at Taylor Wessing, explains that in many Arab countries, legal proceedings are often prolonged. This presents a challenge for genuine landlords who are unable to remove possessors until the court makes a ruling on the matter.

“Prevention is better than cure” holds in this situation.

Experts suggest that the best approach is prevention. This involves clearly establishing ownership of the property by maintaining fences, and door locks, and keeping documentation that proves ownership. It’s not permissible to take possession of a property that has a title deed owned by someone else who claims it.

The next step is for the landlord to formalize agreements with the individuals who will be residing in the property. This is done by using legal documents such as rental agreements.

However, if the property is left unattended, the owner should regularly inspect it to ensure it remains vacant. If the owner discovers squatters on the premises, they should promptly contact the police.

Experts emphasized that landlords should stay in touch with the property tax authority and review local records to verify that no one else is paying property taxes. The individual who pays these taxes could potentially claim a stake in the property and may present tax payment documents to the court to resolve ownership disputes.

El Samra highlights that while this law is often exploited for malicious purposes, particularly in European and American countries, it can also be employed for noble intentions.

He explained, “There’s a chance that the possessor may have received the property as a gift or inheritance, but it wasn’t officially registered. Alternatively, they might have bought it but haven’t completed the registration process correctly yet. In these cases, the law can be applied in good faith.”

In the United Arab Emirates, while there isn’t a specific law solely addressing property seizure, the Emirati legislature has addressed this issue within the Emirati Civil Transactions Law and its revisions. Article No. 1317 of the Emirati Civil Transactions Law states:

Whoever is in possession of chattels or unregistered land as owner thereof or who possesses a right in rem over moveables or an unregistered right in rem over real property shall, if his possession has continued uninterrupted for 15 years, be free of any claims, if he denies the same, for ownership or claims for a right in rem from any person not having a lawful excuse (for having delayed bringing such claim).

Also, Article No. 1318 of the UAE Civil Transactions Law stipulates as follows:

  1. If possession arises over land or an unregistered right in rem over land, then, if the possession is accompanied by good faith and is at the same time based on a valid cause, the period of prescription for bringing claims shall be seven years.
  2. A valid cause is a document or event proving possession of real property, and the following shall be deemed to be valid causes:
  3. transfer of property by inheritance or testamentary disposition;
  4. gifts inter vivos with or without consideration; or
  5. sale and barter.

Hence, we advise promptly utilizing legal procedures to register ownership at the earliest opportunity. This step is typically necessary to prevent potential issues that could result in lengthy legal battles or, in some instances, loss of property ownership.

However, this doesn’t imply that there are no legal remedies available to someone who has been forcibly removed from their property.

The landlord retains the right to initiate an eviction lawsuit for usurpation, which falls under the principle of psychological compensation for harm. This pertains to the individual’s right to possess and benefit from their real estate property. At times, landlords may face attempts to unlawfully evict them from their properties, whether they are owners or tenants.

The claim must be filed within one year of the loss of possession, regardless of its legitimacy.

If the case is successfully proven, the court will issue a ruling to grant financial compensation to the plaintiff as reparation for the psychological distress they suffered due to the deliberate infringement.

To access the original Arabic article and interview video, please click here.

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About Me

Hesham El Samra

I am Hesham ElSamra, and I am currently holding the position of Senior Legal Counsel and Litigator at Clyde and Co. (Dubai). I bring with me a wealth of experience, encompassing more than 15 years, during which I have successfully overseen a multitude of litigation cases within the local courts of the UAE. Notably, I secured two juridical precedents in 2017 within the Abu Dhabi courts and one in 2021 before The General Authority of the Dubai Cassation Court, I've just got the third juridical precedent for enforcing the initial decision from English courts locally in the UAE.

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