Am I losing money that I have paid already?
Is it legal to use rent-to-own models when purchasing apartments in Dubai? Can you clarify the laws governing the purchase of real estate apartments? For instance, what if I pay half and am unable to pay the remaining balance after signing a contract? Do I have to lose the money I paid?
Here I am describing according to UAE’s real estate law. Keep reading keenly.
The provisions of Law No. 19 of 2017 amending Law No. 13 of 2008 regulating the Provisional Real Estate Registry in the Emirate of Dubai (the “Amended Provisional Real Estate Registry Act 2017”). In addition, the Dubai Emirate of Real Property Registration Law No. 7 of 2006 (the “Dubai Real Property Registration Law No. 7 of 2006”), and the Dubai Mortgage Law No. 14 of 2008 (“Dubai Mortgage Law”) shall apply in response to questions.
Some developers in Dubai offer rent-to-own property schemes. Where buyers can make the preliminary down payment. In the form of monthly or quarterly rent or at relating intervals for a few years. After having completed the rent-to-own program, the buyer must pay the developer the balance.
According to Section 4 of the Dubai Property Registration Act No. 7 of 2006. “The right to own immovable property in the UAE vests in nationals of the United Arab Emirates. Nationals of the Cooperation Council of the Gulf, companies 100 percent owned by these nations. And public joint-stock companies.” Non-Emirati nationals may be bestowed the constitutional right in relevant matters calculated by the Sovereign, subject to the Sovereign’s consent:
- Real estate ownership with no time limit
- Up to ninety-nine (99) years of usufruct or leasehold rights.”
A purchaser in Dubai also can reap the benefits of the provisions of the Dubai mortgage law. Which allow him to obtain a mortgage on the property he intends to purchase or has already purchased.
If the purchaser is unable to pay all installments on the property. They may indeed be obligated to a part of the money paid to the developer. Based on the property’s percentage of completion. Section 11 of the revised Provisional Cadastre Act 2017 explains. That the buyer and developer’s obligations in the case of a breach of contractual obligations.
Developer should first report the buyer’s failure to meet any of those contractual obligations to the Dubai Land Department (DLD). The buyer is then notified by the DLD, who is given 30 days to fulfill his contractual obligations under the purchase contract. The DLD may authorize the promoter to fulfill the relevant circumstances for the transfer of property in its name. If the acquirer does not fulfill its obligations within this period. If a payment is due, the promoter may refund a portion of the purchase cost to the buyer.