A Strata Lot in ADGM is an independent freehold title from the moment the strata plan is approved — not from handover, not from payment of the full purchase price, not from occupation. Understanding what this title includes, what obligations come attached to it, and how co-ownership works is essential for every unit buyer and investor.
1. The strata lot folio — your title document
Under section 28, once the Relevant Authority approves the strata plan, the Registrar must open one folio for each Strata Lot. This is automatic — each unit gets its own independent freehold title register. The folio is the definitive record of ownership for that unit.
What the folio contains, under section 30(2):
| Folio entry | Source | Practical effect |
|---|---|---|
| Registered owner's identity | s.14, s.36 | Indefeasible title from date of registration |
| Strata Development Documents reference | s.30(2)(a) | Owner subject to community rules and obligations |
| Master Community Declaration | s.30(2)(a) | Service charge formula and common-area rules |
| Co-owners' constitution | s.30(2)(a) | OA governance rules bind all owners |
| OA share | s.30(2)(b) | Proportionate share in common areas and OA |
| Registered mortgages | Part 9 | Encumbrances on title |
| Registered leases | s.43 | Tenancy obligations binding successors |
| Caveats | s.117 | Claimed unregistered interests; blocks inconsistent registrations |
| Restrictive covenants | s.98 | Use restrictions running with land |
2. Indefeasible title — the s.22 protection
Registration gives the owner indefeasible title under section 22 — the strongest form of property protection available in ADGM. A registered owner cannot be dispossessed except by a Court order under section 23(2)(d). Competing unregistered claims cannot override a registered title.
The only exceptions to indefeasibility:
- Fraud by the registered owner — the registered title can be challenged on fraud grounds (s.23(2)(b))
- AML / terrorist financing suspicion — Registrar can void registration benefits if money laundering suspected (s.23(3)(b))
- Court orders on specific statutory grounds (s.23(2)(d))
- Adverse claims of a personal representative in respect of a deceased estate where register is in error
No adverse possession applies — section 4(7) expressly excludes it. Squatters or long-term occupiers cannot acquire title to an ADGM unit regardless of duration.
3. Service charge obligations — they follow the land
This is the most commercially significant aspect of unit ownership for buyers at resale. Under sections 95 and 107, the obligation to contribute to service charges is a positive covenant that runs with the land and automatically binds all successors-in-title. You buy the unit, you inherit the service charge obligation — even if the previous owner had arrears.
The SC obligation transfers to each new buyer without any requirement for the OA to obtain a new agreement. It is automatic and irrevocable absent a Court order. The only limitation is that each owner is liable for their own period of ownership — you cannot be pursued for arrears from before your registration date.
4. Implied easements affecting unit owners
Every unit owner in an ADGM strata development benefits from and is burdened by implied service easements under sections 84 and 85:
- Water, electricity, telephone, drainage, gas, and sewerage services are auto-implied across all lots in the development (s.84)
- Easements for Service Infrastructure shown in the subdivision plan are automatically implied (s.85)
- Maintenance cost = reasonable proportion of the cost (s.84(4))
- These cannot be excluded or varied without an express registered instrument
- Service providers must give reasonable written notice before accessing another unit's space for maintenance
5. Joint ownership — joint tenancy vs tenancy in common
| Joint tenancy | Tenancy in common | |
|---|---|---|
| Survivorship | Yes — survivor takes all on death of co-owner | No — deceased share passes per will/intestacy |
| Shares | Equal, undivided — no specific shares | Can be unequal (specify in instrument) |
| Mortgage/sell own share | Cannot without severing first | Can — independently dealable shares |
| Succession planning | Poor — bypasses will entirely | Good — share passes per will |
| Convert to other | Sever via self-transfer (s.35) | Cannot convert back without new instrument |
Severing a joint tenancy under section 35 is a unilateral act — the other joint tenant does not need to consent. The severing joint tenant executes a transfer of their own share to themselves as tenant in common. This automatically converts the ownership to tenancy in common in equal shares and destroys the right of survivorship from that point forward.
6. Deceased estate — registration of personal representative
On the death of a registered owner, the property cannot be dealt with until a personal representative (executor or administrator) is registered on the folio under section 109. The personal representative applies with: death certificate, grant of probate or letters of administration, and identification documents. UAE court documents are expressly accepted as evidence under section 109(3) — ADGM Courts probate orders are therefore recognised directly.
If there is no personal representative — for example, in a case of intestacy without a UAE court order yet — the Registrar can grant dispensation under section 110 to allow urgent dealings. This is a safety valve, not a routine process.
7. Void covenants and restrictive covenant limitations
Section 4(1) voids any covenant contrary to public policy. This expressly covers restrictions based on race, nationality, religion, or ethnicity. Any such clause in a Strata Development Document, Master Community Declaration, or individual SPA is void from the outset and will be struck by a Court. Positive covenants — obligations to do something — run with the land under sections 97 and 107, unlike the position under English law where positive covenants traditionally did not bind successors.
This article is for general information only and does not constitute legal advice. For advice on a specific ADGM real property matter, please contact us. Last updated: 19 May 2026.