For first-time buyers, the process of purchasing a home or property, in general, might be intimidating. There are some legal considerations to buying real estate that you should be aware of no matter where you are in the world. In Dubai, the same is true. So, what are the legal requirements for purchasing a home in Dubai? Let’s take a closer look.
THE PROPERTY BUYING LAW IN DUBAI
The Real Estate Law No. 7 of 2006: Land Registration Law in the Emirate regulates the legal aspects of how to buy property in Dubai.
Who can buy and own property in Dubai is defined in Article (4) of Law No. 7 of 2006. You can acquire real estate anywhere in Dubai according to the legislation if you are:
- A UAE citizen
- A GCC citizen
Foreigners can acquire freehold or leasehold homes in Dubai under the same rules, but only in defined locations.
BUYING A PROPERTY IN DUBAI: LEGAL STEPS
Buying a property in Dubai is very simple and streamlined, whether you’re searching for the perfect house or a successful real estate investment.
In order to purchase property in Dubai, you must follow four fundamental legal processes. The legal considerations you need to be aware of when making a cash real estate transaction are broken down in the following section:
1. CREATING AN AGREEMENT BETWEEN THE BUYER AND THE SELLER
The first step is to negotiate and specify the conditions of the sale with the seller when you’ve located the perfect property on Bayut or another property site.
When comparing buying a home with cash vs. a mortgage, your capacity to haggle is perhaps the most important benefit you have. Utilize it to your benefit. You can do it on your own, but it’s generally preferable to hire a real estate professional for assistance.
Make sure there are no misunderstandings between you and the seller about the selling price, a form of payment, or any other factors that are essential to you when agreeing to the terms of sale.
2. SIGNING THE SALE AGREEMENT
The selling agreement, also known as a Memorandum of Understanding, is the second formal stage in purchasing property in Dubai (MOU).
The MOU is commonly referred to as Form F, which is one of Dubai’s RERA real estate forms. Form/Contract F is accessible on the Dubai Land Department’s official website. In most cases, the real estate agent will handle preparing the contract for you.
When the contract is complete, both the buyer and the seller must sign it at the Registration Trustee office in front of a witness (typically the agent).
The buyer must also pay the Registration Trustee a customary ten percent security deposit, which is refunded after the property transfer is completed.
3. APPLYING FOR A CERTIFICATE OF NO OBJECTION (NOC)
You and the seller, as well as the real estate agent, must meet in the developer’s office next (for example, Dubai Properties, Emaar or other property developers in Dubai).
The goal of this meeting is to apply for and pay for a No Objection Certificate (NOC) so that ownership may be transferred.
After confirming that there are no outstanding service costs on the property, the developer will provide the NOC for a fee.
4. COMPLETING THE OWNERSHIP TRANSFER WITH THE DUBAI LAND DEPARTMENT
The final legal step in purchasing a home in Dubai is to meet with the seller at the Dubai Land Department office to complete the transfer.
You must have the following paperwork available before visiting the DLD office for the property transfer to take effect:
- A manager’s cheque for the purchase price of the property, payable to the seller.
- The buyer’s and seller’s original identity documents (Emirates ID, passport and visa)
- The developer’s first no-objection certificate
- Contract F should be signed (MOU)