Dubai is a unique city that attracts entrepreneurs and businesses from all around the world. The real estate market is a significant part of its landscape and a market that attracts millions of investors every year, making it an integral element in the city’s continuous growth and global appeal. Each buyer and seller needs to learn the property laws and abide by the legal procedure as advised.
To begin, ownership rights need to be clarified. In Dubai, nationals and foreigners alike can claim ownership of properties that are present in freehold zones. The freehold zones in Dubai include highly requested areas like Palm Jumeirah, Downtown Dubai, and Dubai Marina. These free ownerships are granted depending on the businesses and projects so interested buyers and sellers are advised to refer to legal professionals to check for the eligibility of ownership.
Registration of Property
Regarding registration and documentation of property, the Dubai Land Department (DLD) under law No. 14 issued in 2008 is where each property sold or bought must be registered. The sellers and buyers should present a valid passport, visa, and proof of ownership or authorization to sell to register their transactions. Upon registration, the property is placed under the name of the owner and proof of ownership is portrayed through a title deed.
In the case of a short-term lease of under 10 years, an Ejari certificate is given as proof of ownership.
Real Estate Agents
A main asset to the real estate market in Dubai is its dynamic and knowledgeable real estate agents. These agents are registered and licensed with the Real Estate Regulatory Authority (RERA), and buyers and sellers must check their agent’s authenticity before initiating any agreement. A real estate agent’s job is to facilitate property transactions and ensure they are performed abiding by the legal requirements of Dubai.
Mortgages and Financing
Local and international banks offer mortgage facilities to help property buyers finance their purchases whether they reside in Dubai. As with all bank operations, the eligibility of the project is to be studied along with the loan’s interest rates and fees. The property to be bought is pledged to the bank and non-payment will foreclose the deal.
Off-Plan Properties
A lot of the properties on the market in Dubai are called off-plan properties. This refers to properties that are under construction or are still being planned. The company or individuals developing off-plan properties must be registered with the Real Estate Regulatory Authority (RERA) and it is of equal importance that investors willing to buy these properties check the eligibility and transparency of the project along with the terms and conditions of the transaction. Off-plan properties should have a specific timeline of completion, and both the owner and the buyer must agree on payment plans and potential cancellation terms.
All real estate developers wishing to register off-plan properties are required to do so in the Interim Register which is maintained by the Dubai Land Department (DLD) as stated by Law No. 9 of 2009. Short-term leases, which are leases of under 10 years, should also be registered by the DLD under the Ejari system.
The Strata Law
The Strata Law is the law that manages the ownership of the property into jointly owned common units and privately owned units. The Owners’ Association is formed by the owners to manage jointly owned areas and facilities. Buyers willing to be part of a strata community should learn their rights and responsibilities like service charges and community rules.
Developers of Strata projects are obliged to register the project under the DLD Unit and Common Areas Site Plans. They also must file a Jointly Owned Property Declaration or a Building Management Statement.
Dispute Resolution
In case of disputes due to property transactions, disputing parties can refer to the Dubai Land Department’s Rental Disputes Centre (RDC) in case of rental disputes, or the Dubai Courts in case of more major property disputes. Alternative methods such as mediation and arbitration offer avenues for resolving disputes. However, when it comes to matters related to property, seeking legal guidance and representation is strongly recommended to ensure the most effective and comprehensive solutions.
Investors and developers of properties in Dubai have to carefully study property laws to be able to perform smooth transactions in Dubai’s huge real estate market. It is advised to consult with legal professionals and licensed real estate agents before undergoing any property transaction to ensure the safest most personalized experience.
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