Non-Omanis who have a usufruit right in one of the prohibited places may be extended by one year from the date of the regulations` entry into force in order to have the right of an Omani to use usufruit. A mortgage through a country of ownership would not be classified as usufruit law, since it is two different types of rights in the territory. A usufruit allows a party to use the country. The law is a real right, limited in time and after the end of the predetermined mandate or after the death of the nudonne, according to what is earlier. During the usufruit period (maximum 50 years, but still renewable), all operations of the landowner are subject to the right of usufruit. The usufruit is allowed to use and treat the land as owner (for authorized use). Outside the country of ownership, this is the only other land right in Oman by which you can grant a mortgage. At the expiration of the usufruit, the land will be returned to the owner in its original state, unless otherwise conditioned by the usufruit contract. However, it is customary to include in the usufruit contract a provision which stipulates that the landowner will compensate the usufruit for the increase in the value of the property as a direct result of the acts of the usufruit. For example, the construction of a hotel in the countryside or the right to the usufruit to remove facilities and machinery or to grant an extension or renewal of the usufruit period. To set up an ITC, the government grants the developer a usufruit right to the development area (the nature of which is explained below). The developer`s rights and obligations are recorded in a development agreement.
Where the ITC includes the development of residential real estate, the developer has the right, upon development, to transfer the units in absolute value to third-party buyers, including non-CCGs (subject to payment of a revaluation fee to the department). If the developer cannot develop the land under the development agreement, the government can take over the ITC project. Because of the subdivision ban, lenders must be careful. If the guarantee offered is a mortgage through a subusfruct right, unless the right of under-indebtedness is expressly authorized by the Sultani decree, the fraction and any security interest cannot be applicable. In these circumstances, the risk would be that a lender would not resume partial use and thus be excluded from the country.