Registration of a Lease Long Term Lease. Guidance

Transcription

1 Registration of a Lease Long Term Lease Guidance

2 Contents Introduction... 3 Registration Authority Office... 3 The Registrar s main functions under Real Property Regulations 2015 are:... 3 Opening Hours... 3 Application to Register a Lease... 4 How to create an account... 4 Supporting Documents... 7 Fees... 7 How to complete the Application to Register a Lease... 8 Available Payment Method Online Payments Credit Card / POS Bank Transfer Errors on the application form or in the documents Approval Process Disclaimer Guidance Registration of a Lease Long Term Lease Page 2 of 21 VER1.1 /

3 Introduction Abu Dhabi Global Market ( ADGM ) is established pursuant to Abu Dhabi Law No. 4 of 2013 as a financial free zone in the Emirate of Abu Dhabi, with its own civil and commercial laws. ADGM offers market participants a world class legal system and regulatory regime. This document has been written to guide clients through the process of registration of a lease. This document gives a comprehensive step by step guide and provides greater understanding of what are the requirements for registration of a lease. Registration Authority Office The Registration Authority (the Registrar ) is an independent authority, which has the powers granted to it under the Abu Dhabi Law No. 4 of The Registrar s office is located on the 3rd floor, ADGM Building, North Side, Abu Dhabi Global Market Square, Al Maryah Island, Abu Dhabi, United Arab Emirates. The Registrar s main functions under Real Property Regulations 2015 are: To register real property interests and all related transactions To maintain registration records To maintain real property interests register To issue search certificates in relation to real property interests Opening Hours The Registrar s office is open from Sunday to Thursday, 9:00am to 3:00pm and may be contacted during normal working hours at or by at ra@adgm.com Guidance Registration of a Lease Long Term Lease Page 3 of 21 VER1.1 /

4 Application to Register a Lease The application to register a lease is available on ADGM Online Registry Solution. Before you begin, please create an account by following the steps on How to create an account and prepare the supporting documents in digital format (scanned in PDF) and have your credit card information at hand. Please refer to Available Payment Methods for more payment options. How to create an account Step 1: Go to Guidance Registration of a Lease Long Term Lease Page 4 of 21 VER1.1 /

5 Step 2: Select Logon/Register Step 3: Select Register Guidance Registration of a Lease Long Term Lease Page 5 of 21 VER1.1 /

6 Step 4: Complete the form. Step 5: Select Create Guidance Registration of a Lease Long Term Lease Page 6 of 21 VER1.1 /

7 Supporting Documents Every application for the registration of a real property interest must be accompanied by supporting documents as prescribed in the form. The following documents are required for application to register a lease: No. Requirement Status Details of Building / Details of the Unit 1. Copy of floor plan / title plan with legal and physical boundaries Details of the Lease 2. Copy of the lease / memorandum of lease 3. Details of Burdens/Benefits (if applicable) 4. Landlord Details For Musataha / usufruct interest, if previously registered, a copy of document evidencing such registration issued by the Relevant Authority (for example, Department of Municipal Affairs). 5. Information of the Lessor / Landlord is pre populated. N/A Tenant Details Individual 6. Copy of passport If applicable, copy of the power of attorney (or equivalent document) authorizing the person signing this application on behalf of the Lessee/Tenant or Lessor/Landlord (whichever is applicable) Body Corporate A copy of Certificate of Incorporation or Registration, or a document of similar effect, certified by the relevant authority in the jurisdiction in which it is incorporated or registered or by its director or company secretary. If applicable, copy of the power of attorney (or equivalent document) authorizing the person signing this application on behalf of the Lessee/Tenant or Lessor/Landlord (whichever is applicable) Fees Below are the schedule of fees for registering a lease in ADGM. Transactions Figures in US$ Application to register a lease (long term, leasehold ownership, in excess of 10 years term) Application to register a lease (short term, less than 10 years term) 2 per cent of the rent fee payable for period of 12 months of the lease term calculated either on average rent payable per square meter/foot calculated over the entire period of the lease term, or, 2 per cent of rent payable for 12 months of the lease term. $100 per year per contract calculated on pro rate basis with commencement date on 15 June Minimum registration fee payable is USD100. Currency Conversion US$ = AED Guidance Registration of a Lease Long Term Lease Page 7 of 21 VER1.1 /

8 How to complete the Application to Register a Lease Step 1: Log in to your account and access the form by selecting Online Services > Property > Registration and Application to Register a Lease Step 2: Complete the General Details section by selecting the appropriate Folio number and uploading the required documents. Guidance Registration of a Lease Long Term Lease Page 8 of 21 VER1.1 /

9 Folio number is the unique identifier reference number of a registered folio for the plot of land on which the real property to be leased is erected or the plot of land which is being leased, whichever is applicable. This number can be extracted from folio registration certificate issued by the Registrar. In the absence of a hard copy of the certificate of registration of plot of land, please apply for official search from the Registrar s office. This number is a significant component of the requirements for the purpose of lease registration and must be selected in order to complete the form. Please refer to the below table for reference. Tower or Building name Folio number Lease number 1 Al Sila Tower 1 FO ADGM RA LS ADGM RA Al Maqam Tower 2 FO ADGM RA LS ADGM RA Al Khatem Tower 3 FO ADGM RA LS ADGM RA Al Sarab Tower 4 FO ADGM RA N/A 5 The Galleria Mall FO ADGM RA LS ADGM RA Step 3: Select Leasehold Guidance Registration of a Lease Long Term Lease Page 9 of 21 VER1.1 /

10 Step 4: Select Unit, if you are registering a lease for a unit (or Land, or Building, whichever is applicable) Step 5: Select your Building Name from the dropdown list and complete the details of the unit. Note that Unit number can be alphanumeric (e.g. Part of Level 11). Guidance Registration of a Lease Long Term Lease Page 10 of 21 VER1.1 /

11 Step 6: Select Next Step to move to the next tab. Step 7: Complete the Details of the Lease and upload the required documents. Guidance Registration of a Lease Long Term Lease Page 11 of 21 VER1.1 /

12 Fee in registering the lease is calculated based on the information provided in this section. a. If you selected Total Lease Value as Rent Paid/Payable, provide the total lease value for the full lease period in the Base Rent (in US$) section. b. If you selected Average Annual Lease Cost/Rent as Rent Paid/Payable, provide the average annual lease cost/rent in the field entitled Base Rent (in US$) section. Note that this figure is not equivalent to Annual Lease Rent. This figure is the expected average for the life of the lease. The basis of the average calculation must be shown within the lease document. Due to averaging approach, this calculation takes into account free periods and future rent increases provided that the Total Lease Value is inclusive of these factors. Note: The system will calculate registration fee, if Average Annual Lease Cost/Rent selected, as follows: a. calculate whole number of years based on lease commencement date and lease expiry date; b. calculate Average Annual Lease Cost/Rent = Total Lease Value divided by number of years of lease; and c. calculate lease application fee: Average Annual Lease Cost/Rent times 2%. c. If you selected Average Annual Lease Cost/Rent per Square Metre as Rent Paid/Payable, provide the Average Annual Lease Cost/Rent in the field entitled Base Rent (in US$) section by multiplying the Total Square Metres and the Average Annual Lease Cost/Rent per Square Metre. Calculation if Average Annual Lease Cost/Rent per Sq. Metre is as follows: a. Calculate Average Annual Lease Cost/Rent = Total Square Metres times Average Annual Lease Cost/Rent per Square Metre b. Calculate lease application fee: Average Annual Lease Cost/Rent times 2% Guidance Registration of a Lease Long Term Lease Page 12 of 21 VER1.1 /

13 Step 8: Once completed, Select Next Step to move to the next tab. Step 9: The details of the registered Lessor / Landlord will be auto populated on the form. Guidance Registration of a Lease Long Term Lease Page 13 of 21 VER1.1 /

14 Step 10: Once completed, Select Next Step to move to the next tab. Step 11: Complete the Lessee / Tenant details by selecting the appropriate type (i.e. individual or body corporate) and upload the required documents. Guidance Registration of a Lease Long Term Lease Page 14 of 21 VER1.1 /

15 Step 12: Once completed, Select Next Step to move to the next tab. Guidance Registration of a Lease Long Term Lease Page 15 of 21 VER1.1 /

16 Step 13: Review all the information and select Submit. Step 14: On the Fee Payment screen, select Credit Card as a payment method. Guidance Registration of a Lease Long Term Lease Page 16 of 21 VER1.1 /

17 Step 15: Then select Continue Step 16: In the dialogue box, select Ok Guidance Registration of a Lease Long Term Lease Page 17 of 21 VER1.1 /

18 Step 17: Complete the credit card information and select Pay. Step 18: Once payment is successful, you may download and view the receipt. You will also receive a copy in your . Guidance Registration of a Lease Long Term Lease Page 18 of 21 VER1.1 /

19 Step 19: Select ok to close the form. At this stage, the form is now submitted to ADGM for review. Please note that your application may be returned for resubmission. If all is in order, application will be approved and you will receive a Certificate of Lease Registration. Should you wish to use different payment method, please select Cancel, Pay Later, and follow the instruction stated in the Available Payment Method section of this document. Available Payment Method ADGM Registration Authority does not accept payment in cash. Payment to the Registrar can be made via the following channels: Online Payments Online credit card payment is only available to those applicants who have submitted applications through the Online Registry Solution. Credit Card / POS An applicant can visit our offices and pay using their credit card. Currently only Visa and MasterCard are accepted. Bank Transfer USD Account Bank Name: National Bank of Abu Dhabi Account Name: ADGM Registration Authority Account Number: IBAN Number: AE Guidance Registration of a Lease Long Term Lease Page 19 of 21 VER1.1 /

20 AED Account Bank Name: National Bank of Abu Dhabi Account Name: ADGM Registration Authority Account Number: IBAN Number: AE Please inform a member of the Registration Authority of your intention to make payment via bank transfer for the specified service. 2. When completing the transfer, where possible please include within the reference for payment field: a) Company name (of applicant) b) Service that is being applied for c) Once the transaction has been completed, please inform a member of the Registration Authority that this transfer has been successful, and if possible provide a copy of the receipt of transfer. The Registration Authority will not commence processing of any application until such time that payment has been successful and received within the account. By following the above steps, any potential delays in tracing payments may be avoided. Errors on the application form or in the documents If the form contains errors, the Registrar s office will normally return it to the applicant for resubmission. The Registrar s office does not correct errors on the forms. The applicant will be informed by about the errors and corrective actions that need to be taken. Approval Process All documents submitted to the Registrar are subject to checks. If the application is in order, a certificate of registration will be issued to the applicant. Certificate of registration of a lease is attached to the approval sent to the party lodging the application. The other party to the lease agreement may receive a true copy of the original issued by the Registrar upon request and payment of applicable fee. Guidance Registration of a Lease Long Term Lease Page 20 of 21 VER1.1 /

21 Disclaimer This Guidance (the Guidance ) provides answers to many frequently asked questions and provides information on completing the application to register and maintain records of a lease. This is only a guide and should be read together with the relevant legislation, in particular, ADGM Real Property Regulations 2015 and any other relevant regulations and enabling rules, which may change over time without notice. The Guidance only refers to the procedures that need to be completed in relation to the Registrar. It does not cover other requirements as set out in the relevant legislation (which includes contact with the court and other obligations of an applicant). Further advice from a specialist professional may be required. The Registration Authority makes no representations as to accuracy, completeness, correctness or suitability of any information and will not be liable for any error or omission For more information, you may contact the Registrar: Telephone No.: ra@adgm.com Address: 3rd floor, ADGM Building, Abu Dhabi Global Market Square, Al Maryah Island, Abu Dhabi, United Arab Emirates. Guidance Registration of a Lease Long Term Lease Page 21 of 21 VER1.1 /