REAL ESTATE LEGAL REQUIREMENTS WHEN PURCHASING A PROPERTY IN THE UAE
Thanks to the introduction of the Law No. 7 of the “Property Registration Law 2006”, the UAE has since then grown to become one of the prime spots for global real estate investment.
The UAE is a federation of seven emirates and each emirate has its own Emir who oversees all the operations of the local government. With the seven emirates being run by different rulers, the rules and regulations for foreign property investment is also different for each emirate. For example, the GCC Nationals are allowed to own properties in Dubai without any sort of restrictions but when it comes to buying a property in Abu Dhabi, the rules are different for GCC Nationals.
The property market in the UAE has grown rapidly since the past 10 years and continues to grow without showing any signs of a slowdown. With so many investors looking to invest in the UAE’s real estate industry, the number of real estate companies in UAE has increased and the government has made the property purchasing process more streamlined and easier.
But no matter how easier the property buying process becomes, the investors must always know all the legal details of the real estate industry they’re investing in to make sure they’re making an informed decision.
Following are the legal requirements that come with buying a property in the UAE:
1: The first thing you need is a valid passport to prove your identity.
2: Buying a property in UAE doesn’t require you to hold any kind of residency visa or a work permit but if you’re planning to move to UAE and want to stay there then you can consider applying for a “Property Holders Visa”. To be able to apply for this property visa, your investment amount must be greater than 1 million dirhams ($272,000)
3: Investors who buy as a company are not eligible to apply for the above mentioned “Property Holders Visa”.
4: Once the buyer and the seller agree to all the terms, a Memorandum of Understanding (MOU) is signed by both the parties and usually a 10% of the total amount is paid as a deposit.
5: After the signing of the MOU, both the parties are then required to go to the developer’s office and apply for a No-Objection Certificate (NOC). A small fee has to be paid for the issuance of the NOC.
6: After the issuance of the NOC, the buyer and the seller then go to the Dubai Land Department and complete all the other duties like paying the registration fees, transferring ownership and issuing the new title deed.
Following are some useful guidelines to make your real estate investment process easier and hassle-free:
A: If you’re a first time real estate investor or if you’re new to the UAE’s real estate market, consider taking assistance of a real estate agent. The agents know the business and have a wide range of experience of working with real estate companies in UAE so teaming up with them will help you find a fair deal.
B: Before collaborating, make sure that the agent is RERA approved by searching for the agents name in the list of approved brokers on Dubai Land Department’s website.
C: Make sure that you invest with RERA approved and the reputable real estate developers only.
D: To ensure the reliability of a real estate developer, go to Dubai Land Department’s website: dubailand.gov.ae and jump over to the list of approved real estate developers. Scan through the list and see if the developer you’re planning to invest with is present in the list or not. If it’s present then it means that the developer is RERA registered and is reliable to invest with.
E: Don’t forget to confirm if the area you’re investing in is allowed for foreign investment or not.
Marihan Saeed, writes about creativity, business, real estate, education and literature. She’s an emerging writing with the center for fiction. When she isn’t busy freelance writing or editing. She’s at a desk somewhere in Dubai, UAE, toiling away at her own fiction writing.