The real estate law in the Sultanate of Oman is the first regulator of real estate relations in its finest details, as it constitutes a unique combination of Arab and Mediterranean legal systems and provisions based on Islamic Sharia. In addition, this law stipulates all provisions that protect the rights of the parties to the real estate contract and regulate their dealings. In this context, we devoted this article to talk about the Omani real estate law and the provisions governing it, in addition to the benefits and drawbacks of this law at all levels, and to answer the most important questions related to it.
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What is the real estate law in the Sultanate of Oman?
Real estate law in Oman is defined as a set of provisions and laws related to real estate procedures and transactions within the scope of the Sultanate, such as conditions for transferring ownership, fees and taxes imposed, procedures for registering real estate property and other details between the seller and buyer or landlord and tenant and the like. This law includes rights and duties related to landlords and matters of forced eviction, rent and dispute resolution in the event of their occurrence.
Mechanisms for protecting real estate property in the Sultanate
A series of legislative texts has been drawn up to enable the affected party to resort to the judicial authorities and claim their rights. Considering that reducing abuse in this aspect is one of the most important purposes of resolving real estate disputes in the Sultanate, it included two sections: the first includes substantive rules and the other includes a set of procedural rules.
So that the substantive rules guarantee that the claimant of the real estate entitlement claim is qualified for that by having the direct jurisdiction of this claim or by a qualified person on his behalf, and he must also be eligible for litigation, that is, he has reached 18 years of age and is able to collect the material and moral benefits that he is entitled to, and he must obtain Litigation permission in some exceptional cases.
As for the procedural or formal rules, they are evident in the fulfillment of all the mandatory data stipulated in the real estate entitlement claim sheet, and it must include all the personal data of the plaintiff in terms of personal information, names of family members, the profession he practices, his place of residence, and the agent who receives the case, if any.
Responsibility for implementing the real estate law in the Sultanate
The task of applying the real estate law and its procedures is entrusted to the judicial courts, which are in charge of matters of protecting the rights of citizens and residents on Omani lands in real estate affairs, and this is done by submitting complaints, requests for arbitration and claims to the competent judicial authorities.
The Real Estate Registry Law for Mortgaged Property in the Sultanate of Oman
There are specific standards with regard to mortgages that were adopted in royal decrees to regulate the methods of managing the mortgaged property. In its origins, the debtor of the mortgaged property was managed as the freedom of the mortgagee himself. Some pillars have been set in this context, including:
If the previous lease was for a period of more than 7 years, it cannot be effective against the mortgagee creditor except for a period of 7 years as well (this is if it was not registered before the mortgage registry).
The Omani real estate law requires that the lease contract of the mortgaged property for a period of more than 7 years be officially registered, in order for the mortgagor to be aware of this before the mortgage is actually registered.
The provisions governing real estate law in the Sultanate of Oman
In order to smooth real estate procedures, guarantee the rights of all parties, and clarify what they have and what they have to do, the Omani legislator has put in place several governing provisions in relation to the real estate law in the Sultanate of Oman, among these provisions:
The seller and buyer must sign the sale and purchase contract and attach all papers and documents required by the lawyer.
The eligibility and legality of the sale and purchase contract is not recognized unless it is registered and documented in the real estate registry of the Ministry of Housing.
The opportunity to own real estate is available to foreign investors in specific areas and with strict conditions and controls.
Upon concluding the sale and purchase contract, the seller has the right to receive a first payment of the value of the property, provided that it is not less than a quarter of the total value.
In the event that the seller violates one of the terms of the contract, the buyer has the right to formally cancel the contract.
It is strictly forbidden to sell or dispose of the rented property without the express permission of the tenant.
The funds deposited in banks and bank accounts belonging to real estate developers are considered frozen and they are not entitled to dispose of them unless they commit to handing over the property according to the period and date agreed upon in the sale and purchase contract.
It is possible to obtain real estate financing from local banks and financial institutions according to special conditions that have been specified in real estate laws and regulations.
Real estate ownership in the Sultanate of Oman
The term real estate ownership denotes the possession of the right of ownership in the real estate existing on the lands of the Sultanate. This step is officially completed after fulfilling the mandatory conditions, securing all the required documents and documents, and registering the property in the Property and Urban Planning Department of the Ministry of Housing.
It is permissible for citizens of Omani origin, foreign residents and major companies in the Sultanate to contribute to Omani real estate after obtaining the official approval from the Ministry of Planning and Housing.
On the other hand, foreigners have the opportunity to own free real estate in specific areas within the Sultanate, where they can buy real estate units with certain fees, and the total area available for foreign real estate investment is determined according to controls that raise the efficiency of the services of the local investment area. For foreigners, you can contact us at Amman Lighthouse to provide you with all the necessary information and details and to suggest the most important investment ideas for a distinguished property and a successful investment.