What happens specifically to property if the owner dies without a will?

The property is frozen and no transactions can take place until the court issues a distribution order. Specifically:

• Mortgaged property: The mortgage does not disappear. The lender becomes a creditor and the debt must be settled before heirs can take possession.
• Rented property: Rental income becomes part of the estate. The family cannot access it or renew tenancy agreements without a court-appointed representative.
• Family home: Simply living in the property does not grant ownership. The surviving family must file court proceedings to inherit their share.
• Off-plan property: Even if not yet handed over, the property is part of the estate. Handover and title deed transfer cannot proceed until the court completes the inheritance process.

To transfer a property into heirs' names once a court order is issued, the standard DLD property registration process applies — including the 4% DLD transfer fee. See 'Is there inheritance tax in the UAE?' below.