The purchase of property on a freehold basis means that the property is registered in the owner’s name by way of a Title Deed registered in the Dubai Land Department. The owner has the right to sell, lease or rent his/her property at his/her discretion.
Areas for freehold properties are designated areas for expatriates, whereas non- freehold property is property limited to UAE Nationals and GCC Nationals.
A two year residency visa is granted for properties above AED 750,000.
Real Estate Regulatory Authority which is part of the Dubai Land Department is a government agency which licenses real estate agents, brokers and developers and regulates all real estate activities in Dubai.
Although there are interesting developments across the UAE from Abu Dhabi to Ras Al Khaimah, more than 95 per cent of market activity is concentrated in the Dubai market. Each emirate has its own legal and judicial systems, Land Registry departments, and rules and regulations as to who can buy, and on what basis.
You need to get professional advice from a real estate broker, a finance broker or from the developer when considering a purchase. Whilst there is a federal law underpinning real estate transaction in the UAE, practically, at present, it has been left to the discretion of the individual emirate to decide upon its own framework and proposition to the market.
In order to purchase property in the UAE, you must be over 21 years of age. A formal sales contract is drafted and agreed upon between the parties; a deposit is made; the buyer obtains financing, if needed; the seller ensures that the property is not encumbered by anything that goes against what has been stipulated; final payment is made by way of a bank draft or cash in the land department, and the title deed is transferred to the new owner.
Freehold means complete ownership of the property by the buyer with his/her name on the title deed. Whereas leasehold refers to having the property on lease for a period of more than 10 years and up to 99 years.
An off-plan property refers to a property whose construction is yet to begin or is in its preliminary stages of construction.
When buying a freehold property in Dubai, the following documents are required:
A Valid Passport
Emirates ID (if resident of UAE)
Many of the institutions that offer mortgages also offer the option of “pre–approved financing”, which allows you to have your loan approved prior to choosing which property in Dubai you would like to purchase. This expedites the overall process and satisfies those sellers that require financing before agreeing to sign a Sale and Purchase Agreement. Validity of the pre-approval is usually 30 days with most banks.
Properties without title deeds may not obtain Mortgage. Such properties can be only brought by cash buyers on Oqood (Pre Registration title)
However each bank has its own policies and procedures with the respective developers.
It is a signed agreement between an individual/company and a landlord for a one-year period or longer, as agreed upon by the landlord and the tenant. It includes the tenant and landlord’s details, their responsibilities and agreed upon rental amounts. All payments are to be made payable in the landlord’s name
Although the rental price is always calculated annually, the payment terms vary from landlord to landlord. A tenant can be expected to give the landlord between 1 and 12 post–dated cheques for the rental property. However, standard practice is 1 to 4 cheques, at the discretion of the landlord.
Cancellation of the tenancy contract is based on the terms and conditions outlined in the leasing addendum and defined in the RERA regulations, signed by the landlord and the tenant at the time of leasing.