How to Buy Property in Dubai Legally: A Step-by-Step Guide

Dubai is a city that attracts many people from around the world, whether for tourism, business, or investment. The city offers a variety of properties for sale, from apartments to villas, from freehold to leasehold, from affordable to luxurious.

However, buying property in Dubai is not as simple as signing a contract and handing over the money. There are certain legal procedures that must be followed, depending on the type, location, and ownership of the property. In this blog post, we will answer some of the most frequently asked questions about the legal procedures to buy property in Dubai, and help you make an informed decision.


What is the Law Behind Buying Property in Dubai?

The main law that regulates the ownership and registration of property in Dubai is Law No. 7 of 2006: Land Registration Law. This law defines who can buy and own property in Dubai, and where they can do so. According to the law, UAE and GCC citizens can buy property anywhere in Dubai, while foreigners can only buy property in areas designated as freehold or leasehold by the government.


What is the Difference Between Freehold and Leasehold Ownership?

Freehold ownership means that you have full and permanent ownership of the property and the land on which it is built, without any restrictions or limitations. You can sell, rent, or inherit the property as you wish. Leasehold ownership means that you have the right to use and occupy the property for a fixed period of time, usually up to 99 years. You can sell or rent the property within the lease period, but you cannot inherit it. You also have to pay a ground rent to the landlord or the developer.


What are the Steps to Buy Property in Dubai?

The steps to buy property in Dubai vary depending on whether you are buying from a developer or a resale market, and whether you are paying in cash or through a mortgage. However, the general steps are as follows:

  • Step 1: Find the property that suits your needs and budget, and negotiate the terms and conditions with the seller or the developer. You can use platforms like Viewit to see immersive proeprty tours and contact the agent directly!
  • Step 2: Sign a preliminary contract or a memorandum of understanding (MOU) with the seller or the developer, and pay a deposit of 10% of the purchase price. The contract should include all the details of the transaction, such as the price, the payment method, the completion date, and the penalties for breach of contract.
  • Step 3: Apply for a no objection certificate (NOC) from the developer, which confirms that there are no outstanding dues or charges on the property, and that the developer has no objection to the transfer of ownership. You may have to pay a fee to obtain the NOC, which is usually valid for 15 days.
  • Step 4: Transfer the ownership of the property at the Dubai Land Department (DLD) or the Registration Trustee’s office, and pay the remaining balance of the purchase price, as well as the registration fees and the agent’s commission. You will need to present the original title deed, the NOC, the passport copies of the buyer and the seller, and the signed contract. The DLD will issue a new title deed in your name, which is the proof of ownership.

You can read this article for a full detailed breakdown.


What are the Fees and Costs Involved in Buying Property in Dubai?

Buying property in Dubai involves various fees and costs, which you should be aware of and budget for. Some of the fees and costs are:

  • Deposit: This is the amount that you pay to the seller or the developer when you sign the contract, which is usually 10% of the purchase price. This amount is refundable if the seller or the developer fails to fulfill their obligations, or if the deal falls through due to reasons beyond your control.
  • Registration fee: This is the fee that you pay to the DLD or the Registration Trustee to register the property in your name, which is 4% of the purchase price, plus an additional fee of Dhs580.
  • Agent’s commission: This is the fee that you pay to the real estate agent who helps you find and buy the property, which is usually 2% of the purchase price, plus VAT.
  • NOC fee: This is the fee that you pay to the developer to obtain the NOC, which varies depending on the developer, but is usually around Dhs5,000.
  • Mortgage fee: This is the fee that you pay to the bank or the financial institution if you are buying the property through a mortgage, which is usually 0.25% to 1% of the loan amount, plus an additional fee of Dhs290 to the DLD.
  • Valuation fee: This is the fee that you pay to a professional valuer to assess the value of the property, which is usually around Dhs3,000.
  • Legal fee: This is the fee that you pay to a lawyer if you choose to hire one to review the contract and advise you on the legal aspects of the transaction, which is usually around Dhs10,000.

For a detailed breakdown, check out this blog!


Conclusion

Buying property in Dubai is a rewarding and exciting experience, but it also requires careful planning and preparation. You need to be aware of the legal procedures, the fees and costs, and the rights and obligations involved in the process.

In this blog post, we have answered some of the most common questions about the legal procedures to buy property in Dubai, but there are many more details and nuances that you should know.

If you’re looking to buy or rent a proeprty in Dubai, check out Viewit!

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