Are you an expat and want to buy a property in Dubai? This article is for you. Whether you are from India, the UK, or any other country, you can own a house here according to UAE laws. You just have to follow some legal procedure to buy property in Dubai.
The buying procedures are a not complicated process when you follow the predefined steps. We lined up this guide for everything you need to know about the procedures of buying a property in Dubai.
1. What Is the Law Behind Buying a Property in Dubai?
The leading regulation for owning a property in Dubai is Law No. 7 of 2006. The law entitles UAE and GCC residents to buy property anywhere in Dubai. As for the foreigners, they can buy their property in areas designated as freehold or leasehold.
2. What Is the Difference Between Freehold and Leasehold Ownership?
The difference between them is that freehold ownership gives you full ownership of the property without restriction, while leasehold allows you to own the property for a set period of time which is up to 99 years
3. What Are the Steps You Should Follow to Buy a Property in Dubai?
The procedure to buy property in Dubai is the same either for owning a home or having a profitable real estate investment in Dubai. To know more about them in detail, check the below steps:
Step 1: Prepare the Buyer/Seller Contract
Once you make up your mind on the property, you can start contacting the seller and negotiating. You can have it in cash or as a mortgage.
In this step, you don’t need the assistance of a real estate agent or lawyer. The tricky part is to leave no room in the contract for any ambiguity regarding the pricing, payment method or plan, or any other determining factors.
Step 2: Sign the Real Estate Sale Agreement
You can easily download the sale contract (Form F), which is also known as a Memorandum of Understanding (MOU), from the official website of the Dubai Land Department (DLD).
You can add or attach to it your own terms and conditions. Once the contract is ready, you and your seller should sign it before a witness and at the Registration Trustee’s office.
Moreover, you should pay an amount of 10% as a security deposit on the property to the Registration Trustee, you receive them once the whole transaction is completed.
Step 3: Apply for No Objection Certificate
This step is a short meeting with the developer to receive a No Objection Certificate (NOC) and successfully get the ownership transferred. If there are no outstanding service bills or charges on the property, the developer will issue the certificate.
Step 4: Transferring Ownership at the Registrar’s Office
Through any of the licensed trustee offices, the DLD is responsible for the property registration functions. You prepare the needed documents, attend in person, or send your authorized representative. The transfer ends in a few steps.
- Submit the required documents
- A payable cheque for the property price
- Original identification documents of both seller and buyer (Emirates ID & passport)
- The original NOC
- The signed contract of F Form
- Get verification of the data
- Pay the fees and receive a receipt for payment
- Receive the output through email.
The transfer will be processed on the same day if the parties submit their documents early. Besides, after receiving the approval email, a new title deed will be issued in your name as the new owner.
For more information on how you can protect your investments, check out this episode from the Home Finders podcast below.
4. What Are the Admin Costs of Buying a Property in Dubai?
There are admin costs that you should pay while having a new home in the emirate. Find below the fee in detail:
- The fees for issuing the Title of Deed is AED 520
- Admin fees to DLD are AED 4,200
- Fees for the DLD are 4% of the property value.
5. Can You Buy Property in Dubai Without an Agent?
Yes, you can. In Dubai, there are different communities where you can get a property direct from the developer or individuals who are selling their units
Things to Consider While Buying a Property in Dubai
- We recommend that only deal with real estate who are not registered with RERA
- Documents written in a Foreign language must be attested and submitted with certified translations into Arabic
- The transactions must be registered within 60 days from the date of signing the contract by both parties
- Some prominent freehold districts where foreigners can buy property in Dubai are Arabian Ranches, Palm Jumeirah, Dubai Marina, and Downtown Dubai.
Now you have your full guide to legal procedures for buying a property in Dubai. Investing in real estate in Dubai is easy and straightforward.
Finding the best property option is not a hassle anymore as you can have a look at the different properties for sale in Dubai on Property Finder.
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