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Buying a Property In Dubai As Per Real Estate Laws

buying a property

Expats can buy

Buying a property in Dubai wasn’t always straightforward and streamlined as it is now. But things are much better now. There are four basic legal steps for buying a property in Dubai, and we will take a look at all of them in this article.

you can get your next home/real estate investment-ready.

property purchase smooth and fast

Buyer must be registered with RERA.

Keep in mind that as a foreigner, you are allowed to buy real estate only in the so-called Designated Areas of Dubai. These communities are handpicked by The crown prince of Dubai to let non-UAE and non-GCC nationals get the opportunity to own a home in the emirate.

Now that we have cleared that out of the way, let’s find out about how you can get your next home/real estate investment-ready. So basically, when it comes to buying a property in Dubai, the following legal steps as per real estate laws are to be followed.

1. Establishing A Buyer And Seller Agreement

Once you have carried out your search, found the right property, conducted extensive research on the developer, the area of Dubai, what the ROI is, and more, you can proceed with the first step, which is to negotiate the online terms of sale with the seller. You can do this step without the help of an estate agent or legal consultant. The rest should be undertaken by a reputable Dubai real estate agency or legal constancy firms that do this as per real estate laws.

2. Signing An Agreement Of Sale As Per Real Estate Laws

After that, the next thing is to sign the agreement of sale also referred to as the Memorandum of Understanding (MOU). This document in Dubai is entitled Contract F and is available on the website of the Dubai Land Department. The standard in Dubai is a 10% deposit in the property to be paid to the seller simultaneously. Once this step is completed, you are halfway through the process.

3. Applying For A No Objection Certificate (NOC)

Next, you will meet with the seller in the office of the developer. The reason for this meeting is to apply and pay for a No Objection Certificate (NOC) for the transfer of ownership. The NOC will be issued by the developer, but after verifying that there are no outstanding fees on the property by way of service charges.

4. Effecting The Transfer Of Ownership With Dubai Land Department

Once the NOC is obtained, you will then meet the seller at the office of the Dubai Land Department for the transfer to be completed. DLD will ask you to make property payment in the form of a manager’s cheque. This cheque is to be paid to the seller on the transfer date. Finally, a brand-new title deed will be issued in your name, and you will officially become the owner of a property in Dubai.

The Different Ways Of Buying a House In Dubai

If you are not able to pay for a property in cash, you will have to apply for a mortgage.

Buying property as an expat might sound complicated, with different obstacles that are able to cripple small-time players. But the Dubai Land Department with other legislating bodies in charge makes the process of property purchase smooth and fast.

Should I buy an off-plan property?

Although compared to other methods, this takes time. It is actually the easiest way to buy property in Dubai.

  • The buyer must submit an application form to the developer.
  • On approval of the application, the buyer will head to the sales center of the developer on a pre-scheduled day to choose the unit and pay the initial deposit.
  • Depending on its completion level, the buyer might wait for 2 to 3 years before receiving the property. The developer will supply the completion date.

Why should you buy a property on the secondary market?

This way is the quickest way to acquire a property in Dubai, but this process is slightly complicated, which involves a fair bit of financial expenses.

  • An investor who wants to buy a property where the seller has a mortgage needs to be able to discharge the seller’s mortgage before the title deed is collected from the land department.
  • The buyer must be registered with RERA.
  • Once the property has been viewed, the buyer presents an offer to the seller, and once this offer is accepted, the seller’s agent produces the memorandum of understanding (contract), which states all the parties’ costs and responsibilities.
  • The buyer will then pay a 10 percent deposit in the seller’s name to secure the property.
  • Depending on whether the buyer is paying cash or through a mortgage, the next step involves the buyer’s bank carrying out a valuation procedure to inspect the property and ensure it is secure enough.
  • Once the final approval is made and the buyer receives this. The seller will then apply to receive the No Objection Certificate (NOC) from the developer.
  • An appointment is then booked at the Land Department to complete the transfer.
  • With all the processes registered, the buyer will then have to pay 2% and AED315 to the Dubai Land Department, along with the purchase price to the seller and commission to the agent.
  • The buyer will then receive the title deed, which will be in his name, along with the keys and access cards to the new house.

How can I secure mortgage pre-approval?

If you can’t pay cash for the property, you will then have to apply for a mortgage. To secure a mortgage approval, here are the simple documents you have to prepare:

  • A salary letter from your employer.
  • The salary slips you have received.
  • The bank statements from the last six months.
  • Passport copy with a photo and visa page.
  • Copy of Emirates ID.
  • A copy of credit card statements.
  • Proof of address.

The pre-approval stage for a mortgage takes over seven days for salaried borrowers and takes longer for self-employed individuals.

What are the different kinds of prices of a property?

List Price: The asking price of the property is the list price which is negotiable.

Sale Price: The sale price is the price the owner settles at.

Appraised Value: The value the real estate agent provides by comparing the value of the property with other properties in the market.

What other costs should be considered?

When it comes to selling:

  • Mortgage clearance (fees for cancellation)
  • Clearance of service charges/maintenance fees
  • Settlement of DEWA/District cooling
  • The Developer’s NOC if required
  • Transfer fees paid to the Land Department
  • Commission

What other costs should be considered?

When it comes to selling:

  • Mortgage clearance (fees for cancellation)
  • Clearance of service charges/maintenance fees
  • Settlement of DEWA/District cooling
  • The Developer’s NOC if required
  • Transfer fees paid to the Land Department
  • Commission

When it comes to buying:

  • Deposits as per agreement of sale between buyer and seller
  • Connection for electricity and water authorities
  • Mortgage application fees if required
  • Community service fees
  • Miscellaneous admin fees to the Land Department
  • Commission

Meet a lawyer before you buy a property in Dubai, UAE Make sure the contracts cover you completely if there is a dispute or a litigation. Call us now +97150 6531334

Expatriates buying a property in the UAE

Foreigners (who don’t live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction

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