By The United Arab Emirates is one of the world’s most popular destinations for investment in the real estate sector. Attributed to its political stability, strong economy, and consistent economic policies, investors are attracted to invest. The real estate sector of the UAE is at its boom. Nevertheless, the UAE is home to attractive tax benefits, a stable environment, smooth political conditions, and excellent investment opportunities.
The UAE market is open for all irrespective of local and international buyers. Nonetheless, the procedure to buy property in the country involves several legal specifications. There are many rules, legislation, and laws that an investor must adhere to before purchasing a property. This is essential to remain compliant with the local UAE laws regarding the property. Moreover, it will ensure a smooth and legally compliant transaction.
There are certain ownership restrictions to consider when interested in buying property in the UAE. As per the Civil Code of UAE, property rights include “freehold,” “usufruct,” and “Musataha.”
Note: Attorneys expert in such matters are called as Real Estate Lawyers or Civil Lawyers. For Civil Law or Property Law, the Dubai Lawyers are the top most favorite attorneys. But if you are in some another Emirate like Abu Dhabi, Ajman, Sharjah then you should hire as per the location. For example for a property in ABU DHABI you can hire a lawyer from Abu Dhabi. Law is federal in UAE, therefore it allows the lawyers to practice in all the Emirates if they have the lawyer ID form that respective Emirate. But it is a good idea indeed to hire the attorney from the same Emirate. Lawyers in Dubai and Lawyers in Abu Dhabi (UAE Nationals), do have the good reputation, indeed.
- Freehold property allows the ownership with full ownership. On the other hand, usufruct and Musataha provide limited or restricted ownership rights to the buyer. This is for a certain period. Additionally, foreign buyers are eligible to buy properties in specific designated areas. The designated areas are called “freehold” properties. Besides, every emirate in the UAE has a set of laws and regulations. The laws govern these areas and their specific regulations and requirements.
- The legal Status of the Buyers must be clear. This is important to ensure that the property they want to purchase has a genuine and adequate legal status. This provides much clarity to property from being involved in any legal disputes.
- It is also a way to avoid any confusion or encumbrances. Moreover, the buyers should verify the ownership of the property from the government officials. This will ensure the seller has the right to sell it.
- Buyers are required to pay a deposit of at least 10% of the property price. This is paid as a security which is essential for the protection of it too.
- Financing is another key factor to consider. In case you are planning to finance your property purchase, you need to ensure certain things. You must make sure you have the necessary financing in place.
- Before proceeding with the transaction, this is imperative. This might involve obtaining a mortgage or other way of financing. It is obtained from a local or international lender.
- Always conduct due diligence before purchasing any property anywhere around the UAE. Thorough research will be helpful to the process. This includes verifying the property’s ownership.
- Besides, the legal status should be checked by the appropriate authority in the respective emirate. This is essential to ensure there are no disputes, problems, or legal issues surrounding the property.
- Added, also make sure that the property is free of any liens or encumbrances. Also, scrutinize that all the necessary approvals and permits should have been obtained before.
- Ensure that all contracts and agreements related to the purchase are legal. They should be compliant. Furthermore, it should reflect the accuracy and transparency of the terms of the agreement.
- For instance, a sale-purchase agreement should include all the relevant details and information. Details such as the purchase price, terms and conditions, payment terms, and delivery date should be included.
- There is a need for registration and transfer of ownership of the property. It should be done according to the law of the land. The transfer is completed through the issuance of a title deed.
- It is issued by the Dubai Land Department (DLD) or the respective land department of the emirate where the property is located.
- Nonetheless, the buyers should pay the fees including registration fees, agency fees, and transfer fees. This will range from 2% to 7% of the purchase price.
- Let us discuss the Step-by-Step Process for Buying Property in the UAE. Once the Property is selected now you need to decide on the type of property. The emirate where you want to buy must be clear.
- For foreign purchasers, designated freehold areas must be researched properly. Verifying the Legal Status of the property is integral.
- This is done to ensure it is free from disputes, discrepancies, litigation, and encumbrances. Moreover, check that the seller is right to sell the property.
- In the UAE you have to pay a deposit of at least 10% of the property price. It is done to secure the property. Conducting due diligence is helpful. Always perform thorough research to ensure there are no legal issues, disputes, or legal issues with the property.
- Verify the ownership and check for any liens or encumbrances with the relevant department including DLD or other land departments.
Before signing up the contracts ensure that all contracts and agreements are legally compliant as per the law. The contract should reflect the terms of the sale.
This may include the sale-purchase agreement detailing the purchase price, payment terms, and delivery date.
Complete the registration and transfer of ownership with the relevant land department. Pay for the necessary fees once registration is done. It can range from 2% to 7% of the purchase price.
Purchasing property in the UAE requires careful consideration. The legal and regulatory aspects must be taken into consideration. The process of buying property in UAE is complex and varies depending on the emirate and the type of property being purchased.
Therefore, it is essential to ensure a smooth and legally compliant purchase. It is highly recommendable to seek professional help. The lawyers and legal consultants in UAE offer professional legal support and advice.