For first-time buyers, the process of buying a house in Dubai might be intimidating. No matter where you are in the world. There are some legal issues of real estate investing that you should be aware of. In Dubai, the same is true. Let us look at how to acquire Real Estate in Dubai. Assess the legal processes that must be undertaken in accordance with real estate legislation for this objective.
The Property Buying Law in Dubai
Real Estate Law No. 7 of 2006: Land Registration Law governs the legal issues of buy property in Dubai. Who really can buy and own property in Dubai is defined in Article (4) of Law No. 7 of 2006. You can buy real estate wherever in Dubai according to the legislation if you are:
- A UAE citizen
- A GCC citizen
Foreigners can also buy properties under the same statute, but only in regions designated for overseas property ownership. For foreigners in Dubai, there are two types of property ownership: freehold and leasehold. Buyer rights are the primary distinction between freehold & leasehold property ownership in Dubai.
You will also have property rights for a specified period if you acquire a residence on a leasehold basis. When you purchase a freehold property, however, you will have entire ownership of both the property and the ground on which it is built.
Buying a Property in Dubai: Legal Steps
The process of purchase or Invest in property is very simple. Whether you are looking for a lovely home to live in or a profitable real estate investment. When purchasing property in Dubai, there are four main legal stages to follow. The legal factors you need to be familiar with to address how to buy a home in Dubai are broken down chronologically in the following section.
1. Contract Formulation between the Buyer and the Seller
The first step would be to negotiate and detail the conditions of sale with the seller when you have identified the suitable property on Binayah or another property portal.
You have two choices when it comes to acquiring property in Dubai and the UAE: pay in cash or apply for a Mortgage in Dubai. When you buy a home with cash rather than a mortgage, you have the power to negotiate the best price. Cash buyers have a deeper understanding of their budget, which allows them to haggle for a lesser price.
This stage can be completed without a trusted real estate agent or even a lawyer. Any competent Dubai real estate agent or legal compliance organization should handle the rest. Make sure there are still no misunderstandings for both you and the seller about the selling price, manner of payment, or other key variables when signing the terms of the contract.
2. Signing the Sale Agreement
The sale contract also referred to as the Memorandum of Understanding (MOU), is the second formal stage in purchasing property in Dubai. One of the RERA real estate forms in Dubai is the MOU or Form F. Form/Contract F is accessible on the Dubai Land Department’s official website. The real estate professional will usually prepare the contract for you.
When the contract is finalized, both the buyer and the seller must sign it at the Registration Trustee’s office in front of a witness (typically the agent). The buyer must additionally pay a standard 10-percent security deposit to the Registration Trustee. Which is refunded once the ownership transfer is completed.
3. Application for a Certificate of No Objection
The next step is for you and the seller to meet at the developer’s office with the real estate agent (for example, Dubai Properties, Emaar, or other property developers in Dubai). The goal of this meeting is to apply for and pay for the No Objection Certificate (NOC) so that ownership can be transferred. Only when there are no outstanding service costs on the property can the developer give the NOC.
4. Implementing the Transfer of Ownership with DLD
After receiving the NOC, the final legal step in buy property in Dubai is to meet with the seller at the DLD office to complete the transfer. Before attending the DLD office, you must have the following documents with you in order for the property transfer to take effect:
- A manager’s cheque for the purchase price of the property is payable to the seller.
- The buyer’s and sellers original identity documents (Emirates ID, passport, and visa)
- The developer’s original NOC
- Signed Contract F (MOU)
Following the completion of the formalities, a new title document will be issued in your name, and you will be an official property owner in Dubai.