Want to buy property in Dubai, but don’t know the local laws & legal procedures governing the property market in Dubai?
You’re at the right place!
This blog will help you understand each part of the process to make your property investment smooth and stress-free.
Key Considerations to Buy Property in Dubai
The major considerations you need to know before you proceed to search a property in Dubai are as follows:
Should I Buy Off-Plan Property in Dubai?
Off-plan properties take much more time than other methods of buying a property in Dubai. However, it is one of the most preferred and easiest ways. To buy an off-plan property, you should take the following steps:
- Fill out the application form and submit it to the desired developer in Dubai, whichever you choose.
- When your application is approved, you can visit the sales center as per the pre-scheduled time slot. In the meeting with the representative, you can make the initial payment.
- Depending on the current progress of the work, it might take 2-3 years for the property to be handed over to you in possession. The developer will state the expected date for possession of the property.
Is Buying a Secondary Property in Dubai a Better Option?
Compared to off-plan properties, secondary properties are located in established neighborhoods. These properties tend to be more expensive, as these are already well-established and maintained. Thus, the process of buying a secondary property in Dubai is slightly different from that of off-plan property.
- If the property you want has an existing mortgage, you’ll need to pay off that mortgage before you can get the title deed from the Land Department.
- You should use a broker who is registered with RERA. After you visit the property and make an offer, if the seller agrees, their agent will prepare a contract that lists all the costs and responsibilities.
- You’ll need to pay a 10% deposit to hold the property.
- If you’re using a mortgage, your bank will assess the property to ensure it’s worth the loan amount.
- Once the bank approves the loan, the seller will get a No Objection Certificate from the developer.
- You’ll need to schedule an appointment at the Land Department to complete the transfer.
- After everything is finalized, you’ll pay 2% of the purchase price plus AED315 to the DLD, give the remaining money to the seller, and pay the agent’s commission. Then, you’ll get the title deed, keys, and access cards for your new home.
Secure Mortgage Pre-Approval
- Employment letter from your employer
- Salary slips
- Bank statements (Last six months)
- Passport copy with both a photo and visa page
- Copy of your Emirates ID
- Copy of Credit Card statements
- Proof of address
The average pre-approval stage of a mortgage might take about a week for salaried individuals. However, for self-employed individuals, it may take a bit longer.
Different Types of Property Prices
There are different types of properties in Dubai that are available for sale. Therefore, it is important to know about all the types of properties and their pricing range to make an informed decision.
- List Price: It is an initial price that can be negotiated.
- Sale Price: The sale price of a property is what the owner agrees to.
- Appraised Value: The value that is provided by the real estate agent by comparing the property’s value with other properties in the market.
Costs to Consider While Buying a Property in Dubai
When you’re buying a property in Dubai, there is a wide range of factors you need to keep in mind. The following are a few major elements to keep in consideration.
- Deposits based on the sale agreement with the seller
- Transfer fees to the Land Department
- Connection fees for electricity and water, and community service fees.
- If you are getting a mortgage, there will be application fees as well.
- Small administrative fees to pay to the Land Department
- Commission of the property agent.
Legal Considerations for Buying a Property in Dubai
Dubai welcomes tourists, foreigners, and individuals from all around the world with open arms. The UAE law allows you to own a property, but there are a few elements you need to keep in mind.
The law No. 7 of 2006 is a major reference and regulation related to owning a property in Dubai. The law allows GCC residents to buy property anywhere in Dubai. Meanwhile, foreigners can buy properties in specific areas. The legal steps you need to follow to buy a property in Dubai are as follows:
Step 1: Prepare the Contract
After you have found the property, you need to have a discussion with the seller about terms and payment methods and whether it will be upfront cash or mortgage. Make sure to add pricing, payment methods, and other pertinent terms clearly to avoid any misunderstandings in the future.
Step 2: Sign The Sale Agreement
Download the sale contract (Form F), also known as the Memorandum of Understanding (MOU), from the Dubai Land Department (DLD) website. You can add your own terms, and once the contract is ready, both you and the seller should sign it in front of a witness, preferably at the Registration Trustee’s office. You’ll also need to pay a 10% deposit to the Registration Trustee, which will be returned to you when the deal is finished.
Step 3: Apply For NOC
At this point, you should get a No Objection Certificate (NOC) from the developers to finalize the transfer of property ownership. The developer will issue the NOC if all the outstanding service bills are paid and no dues are remaining.
Step 4: Transferring Ownership at the Registrar’s Office
To complete the transfer, prepare the required documents and either go in person or send someone you trust. The process includes:
- Submit the necessary documents.
- Provide a cheque for the property price.
- Show original IDs (Emirates ID and passport) for both the buyer and seller.
- Provide the original No Objection Certificate (NOC).
- Present the signed contract (F Form).
- Verify the information.
- Pay the fees and get a receipt.
- Check your email for confirmation.
If you submit everything early, the transfer will be done the same day. You’ll receive an email with your new title deed as the property owner.
Additional Considerations to Keep in Mind While Buying A Property in Dubai
- It is recommended to opt for a real estate company that has a team of RERA registered professionals.
- You should make sure to submit the document written in Arabic. If it is in a foreign language, make sure to attest and submit with a certified translation.
- Make sure to register the transactions within 60 days from the date of signing the contract by both parties.
Final Word
As we wrap up, buying property in Dubai involves multiple legal steps, but with the right guidance and preparation, it can be a rewarding experience. By following these steps and working with professionals, you can successfully buy a property in Dubai with confidence and ease. However, being a foreigner or even an expat it could be complex to buy a property in Dubai, with so many legal procedures in place. Therefore, it is best to consult with a professional real estate company in Dubai, UAE. They won’t just guide you, but will make the process of buying a property in Dubai simple and hassle-free.
FAQs
Q1: Is it easy to buy an apartment in Dubai?
Yes, buying property in Dubai has become easier since January 2024. The process of buying property in Dubai is now more similar to how it works in many Western countries.
Q2: Can foreigners buy a house in Dubai?
Yes, foreigners can buy property in certain areas that allow foreign ownership. These areas include popular locations like Dubai Hills Estate, Palm Jumeirah, Downtown Dubai, Dubai Marina, Arabian Ranches, and Jumeirah Beach Residence.
Q3; How long does it take to buy a property in Dubai?
The duration to buy a property in Dubai can depend on the requirements and how quickly you find the property and complete its documentation. It can take weeks to months.
Q4: Can I buy property in Dubai without being a resident?
Yes, you can buy property in Dubai even if you are not a resident. However, you can only buy in specific areas that allow foreign ownership.
