Dubai is a beautiful and luxurious place. With an exuberant lifestyle, malls and beautiful beaches, Dubai offer you a wide range of options to gratify your senses through its vibrant restaurants, resorts, shopping centres, marine-animal parks, safaris, adventure parks, museums and the list is endless!
But buying a property in Dubai can seem like a daunting task. There are the local laws, rules and regulations to consider, and there is the ever-present question of what the exact expense might be when various fees are added in.
To simplify the buying process, we have curated a ‘know it all’ guide for you to buy property in Dubai.
What does the law say?
A person of any nationality is eligible to buy property in Dubai. Under Article 4 Real Estate Law No. 7 of 2006: Land Registration Law in the Emirate, a citizen of UAE or GCC (Gulf Cooperation Council) or a foreigner is eligible to exercise freehold or leasehold ownership in Dubai. All the transactions during the course of buying a property are managed by the Dubai Land Department (DLD). Approaching a real estate agent or legal representative before proceeding is always advisable and beneficial as they take care of the legalities and necessary documentation work that needs to be accomplished during any such transaction.
As an individual buyer, one needs to furnish documents like a passport, Legal ID, Proof of address and contact details.
As a corporate buyer you will be required to furnish:
- Original Certificate of Incorporation or Trade License
- Original Memorandum and Article of Association
- Legal translation of the memorandum and articles of association
- Original certificate of incumbency (not more than 3 months old)
- Copy of shareholders’ passports
- Original resolution approving a purchase
- Original POA
- Original passport of attorney
Once you have decided on the property of your choice, you are required to enter into a sale agreement also known as a Memorandum of Understanding.
You need to pay a security deposit once the transfer of property is finalized. Next, comes the application for NOC (No objection certificate) to facilitate the transfer of ownership. Such a transfer is brought to existence through the DLD for which you must possess the following documents:
- A manager’s cheque for the property price payable to the seller
- ∙ The original identification documents of the buyer and seller (Emirates ID, passport and visa)
- The original NOC issued by the developer
- Signed Contract/ Sale agreement (MOU)
After all the requisite checks and completion of legal formalities, a title deed shall be issued in your name. This is the final step involved in acquiring a property at your dream destination Dubai!
Before making any decisions about buying a property in dubai, it is highly recommended that you take on a legal advisor familiar with local property laws to oversee the transaction.
Things to keep in mind before buying a property in Dubai
- If you are being represented by a Power of Attorney, the POA document must be notarized in the country where it is signed, following which it will be legalized by the UAE Embassy in that country.
- When the document arrives in the UAE, it must be attested at the Ministry of Foreign Affairs and translated into Arabic. For buyers residing in the UAE, the signing of the POA must be witnessed by a Notary Public. As per Dubai Land Department regulations, a POA cannot be more than two years old.
- All documentation submitted to the DLD must be translated into Arabic by a certified legal translator. Documents not in Arabic or without an Arabic translation will not be considered valid for real estate transactions.
- Regarding VAT, Certain real estate transactions in Dubai are taxable, though this mainly applies to commercial properties. At present, VAT is not levied upon residential property transactions in Dubai.
Looking to buy a property? Check out properties for sale in Dubai.
To know more about the latest reforms, we would recommend that you talk to your trusted agent.