If you wish to join the growing number of investors and buyers of Dubai homes and apartments, we’ve put together this helpful legal guide to assist you in purchasing a property in Dubai.
Dubai’s Governing Authorities: An Overview
Many expatriates have been enticed to make an investment in Dubai since a decision in 2002 allowed foreign nationals to acquire freehold property. Real estate entities have been established to facilitate operations and protect investors’ interests. The two primary entities you will come across when acquiring an apartment in Dubai are described below:
Dubai Land Department (DLD) — This is the primary government agency in charge of all real estate-related matters, including land sales. The business is also responsible for title registration, licensing, and assuring the safety of all buyers and sellers in Dubai, from approvals to document transactions.
RERA (Real Estate Regulatory Agency) – This organization is in charge of overseeing all aspects of the real estate industry, including homes for sale in Dubai. As a result, RERA regulates real estate developers, owners, and brokerage firms. It eliminates halted projects and ignores all technical issues relating to the development of real estate projects, from financial to legal. Despite the fact that RERA is a stringent body, it ensures that the interests of purchasers and investors are protected.
What Can You Expect?
As a buyer, you can sign a Memorandum of Understanding and pay a deposit once you and the seller agree on the terms. After that, a Certificate of No Objection is issued. Following the issuance of the certificate, all parties involved visit the Dubai Land Department to pay further payments (including the registration fees, issuing a new title deed and transferring ownership). A bank will be engaged in the process if you are financing the property with a mortgage.
Documents of the Law:
Before acquiring a house in Dubai, you will be asked to hand over a set of documents, which can vary depending on your situation. For a faster process, we recommend visiting the Dubai Land Department and having your documents pre-approved. You’ll also need to have copies of your documents translated into Arabic by a UAE-certified legal translator.
Expenses You Might Have to Pay for a Dubai Property:
The NOC price could range between AED 500 and AED 5,000.
The Dubai Land Department charges a registration fee of 4% of the property price.
A real estate agent’s commission is usually around 2%.
Additional charges to the developer or the Dubai Land Department may be incurred. Building maintenance or community service costs, payable to the developer, are additional conceivable fees that may arise later. It’s critical to know these expenditures ahead of time so that you can calculate and fund your budget appropriately.
What Are the Best Places to Buy Apartments in Dubai?
Nationals of the Gulf Cooperation Council (GCC) and the United Arab Emirates (UAE) are allowed to own any real estate property in Dubai. Foreign nationals, on the other hand, are only allowed to buy property in specific areas. The Palm, Downtown Dubai, Burj Khalifa, Dubai Marina, Emirates Hills, JLT, JBR, Dubai Sports City, and a few others are among them.