How Expats Can Purchase Real Estate Property In Dubai?

Author: Hassan Elhais

People planning to buy a property anywhere across the globe has to experience some legal aspects. Dubai is a world-class choice where one can purchase all kinds of properties. In Dubai, its revised laws allow foreigners to invest in Dubai's real estate market. Real Estate Law Number 7 of 2006; Land Registration Law in the Emirates controls the legal features of buying a property in Dubai or UAE. Article 4 of Law number 7 of 2006 defines well who can own a real estate property in UAE. You can consult a property lawyer in Dubai.

Article 4 states; UAE and GCC nationals owning a company have the right to buy a property in Dubai. Non-resident foreigners who are interested to invest in property or purchase a flat in Dubai commonly search for freehold properties. Investors enjoy getting full ownership over the freehold property, which they can use for legal purposes. For purchasing or owning a property in Dubai, there are four basic steps that one needs to follow that are:

1. Agreement Between Buyer and Seller

Firstly, you need to find out the right property and need to negotiate certain terms with your seller. To find out the property in Dubai the purchaser can get the assistance of RERA registered brokers. One can also apply for home loan options or mortgage financing. There should not be any hesitation between the buyer and the seller while accepting the terms and conditions. Both must have a clear discussion.

2. Signing The Agreement Documents

After the first step, the next step is to sign a sale agreement. It is termed as Memorandum of Understanding. A Memorandum of Understanding (MOU) is commonly termed a Contract / Form F and protects the rights of the three parties’ sale agreement. Contract / Form F is one of the essential forms needed during the transaction of a property. Form F is available on the official website Land Department (DLD). After the documents are ready, the buyer and seller must sign the agreement at Registration Trustee Office. After signing the agreement in front of a witness the purchaser has to make the payment for a security deposit of 10% on the property to the Registration Trustee. However, this deposit is returned to the buyer once everything is finalized.

3. NOC

Now, the third step includes the seller applying for a No Objection Certificate (NOC) from the developer to transfer the ownership of the property. The developer will generate a No Objection Certificate (NOC) at a fee of AED 500 to AED 5000. Before issuing a No Objection Certificate the developer has to make clear that no service charges are outstanding on the property.

4. Transfer of Ownership

Once you get the NOC from the developer, both the purchase and seller must meet in the office of the Dubai Land Department to complete the transfer of ownership. The purchase and the seller have to generate some documents for Dubai Land Department to take effect the transfer of the property. The documents are as follows:

  • A cheque for the property cost payable to the seller,
  • The valid Emirates ID, passport, and visa of the purchaser and the seller,
  • Original NOC issued by the property developer,
  • Signed Memorandum of Understanding or Contract / Form F.

After the process gets completed, a new title deed is issued in the name of the buyer. Usually, transferring the property in Dubai will take two to ten weeks for completing the entire process. If you buy a property on a mortgage, then the legal procedures are different.

In such a scenario, the buyer must obtain a mortgage approval before signing the Memorandum of Understanding. The Dubai Land Department must also approve the transaction before a No Objection Certificate can be applied for. Before requesting a No Objection Certificate, the buyer must pay off the original mortgage if there is one on the property they intend to purchase (NOC). Such situations carry the risk for the buyer as it needs more legal steps. There are numerous costs when purchasing a property in Dubai. These are as follows:

  • Dubai Land Department’s fee of 4% of the property value
  • Title deed issuance fee – AED 250
  • Admin fees to be paid to Dubai Land department – AED 4200
  • 2% of the property value as agent fees
  • No Objection Certificate Charge varying from AED 500 to AED 5000

Article Source: https://www.realestateworldblog.com/purchase-real-estate-property-in-dubai/