UAE is one nation that attracts the most foreign direct investment. Real estate is a vital industry to attract additional investment to the UAE. A non-resident buyer can be granted a UAE visa for the long term if they make a high-value purchase in UAE real property. Hence, this is why it is a must to maintain property transfer in Dubai laws. It will give you all the freedom to do anything u want with your property through legal ways and actions.
Federal Law No. 5 of 1985 (Civil Code) is the primary legislation that deals with land ownership rights and property types. 5 of 1985 (Civil Code). Hence, each Emirate has its own rules for the sale and purchase of land. You can consult them for more guidance. Therefore, these are going o give you an open area to know about all of the legal actions that you can carry out. Hence, it will make everything easier and also ensure to give you a legal way to do anything you want to with your property. Moreover, you should also keep in mind that if you fail to follow any of these laws, then there are going to be consequences.
Who can purchase property in UAE?
Anyone can buy real estate in the UAE, provided they meet certain requirements.
Article 4 (Property Ownership Law) states that UAE citizens and GCC citizens can own freehold real estate titles and acquire any real estate interest, including usufruct and Musalaha. Public joint stock corporations are also allowed to purchase property in Dubai. Therefore, public joint stock corporations are also permitted to acquire property in Dubai.
Non-citizens of the UAE and GCC may own freehold titles, long leases, or usufruct right for up to 99 years.
Property Transfer: What is it?
According to the Civil Code, property cannot be transferred between people unless it has been legally registered. Moreover, Dubai Law 7 of 2006. Regulates the registration of property within the Emirate of Dubai. The only valid proof of property rights is the government’s title deeds under Dubai real estate law.
Property Transfer Procedure in Dubai
For property registration and transfer, the UAE requires that you follow these steps.
To ensure the seller is authorized to sell the subject property, a thorough investigation is conducted. Therefore, the typical property due diligence process includes reviewing the title records, checking the property personally, and looking through the property register if possible.
Contract of Sale
The terms of the contract, as agreed by the parties, are usually spelled out in a term sheet or memorandum. The term sheet is usually subject to a fixed expiration date, and it is in effect until the sale contract is signed. It is usually contingent upon the conclusion of thorough due diligence.
The sale contract should include details about the property, buyer, seller, terms of payment, applicable law, dispute resolution procedure, termination clause, and other pertinent information. A sample sale contract should be used if the authorities have provided one. Moreover, an annex is also in those details the additional provisions.
Certificate of No Objection (NOC)
Next, you will need to meet with the seller at his office. Hence, the seller will request and purchase a letter of authorization (NOC) to allow the transfer of ownership. If there are no outstanding service bills on the property, the developer will issue a NOC.
Transfer ownership to the Dubai Land Department
After you have received your NOC, the final step to legally purchase a property in Dubai will be to meet the seller at Dubai Land Department.
Types of Property
Below are the categories of real property that are acceptable in the UAE.
It gives you the unlimited, unrestricted, and perpetual right to the property. Certain regions in the United Arab Emirates are considerable to freehold land. Expats who have an interest in investing in Dubai will attract more to freehold properties. Hence, you can also sell, hold and rent them. When you buy a Dubai freehold villa or townhouse, you also get land ownership.
This category allows the investor to take full ownership of the land for life with minimal paperwork and no state authorization. Hence, this also includes the property transfer in Dubai.
Common hold Property
UAE common hold properties are usually freehold. Hence, you are not buying the property but a common hold property such as an apartment, condominium, or non-residential unit within a building. Therefore, the title deed gives you absolute ownership over the unit but not the land.
Common hold property allows you to own, rent, or sell a property. This is for inheritance purposes. Therefore, the owner of these structures is usually property or real estate developers.
Usufruct properties can be describable as long-term leases. The owner of a usufruct property cannot alter or change it. Therefore, these other options, including Musataha and usufruct properties, are available to ex-pats if ownership rights only if it comes under the restrict section.
The United Arab Emirates has residential lease terms that can last from 10 to 99 years and commercial lease terms that can last up to 50. Therefore, you may also inherit usufruct property.
Non-freehold properties in Dubai restrict to residents and GCC citizens. These Dubai neighborhoods do not permit foreign investors. Hence, in recent years, however, several projects within these non-freehold areas have been granted freehold status by the government.
Documents needed for Property Transfer
- Original and copied passports
- Original title deed
- Original NOC of the developer (freehold only).
- Agreement for Sale and Purchase (certificate de property ownership).
- A managerial checque is payable to the seller
How Can GA registered Lawyers in Dubai help you with Property Transfer in Dubai?
These are the legal requirements to be able to transfer property in Dubai. However, real estate investments in Dubai are a substantial financial commitment. It is important to weigh the benefits and drawbacks before you make any decisions. Hence, you must take certain steps before you can buy or sell property in Dubai.
A Dubai property lawyer can provide valuable guidance and experience to ensure the transaction goes smoothly. Moreover, a reputable law firm in Dubai, UAE, will have experienced and skilled property lawyers to speed up the process. To simplify things, you can ask for help from a property lawyer.