Buying real estate in the UAE: conditions and requirements

OAE is a popular destination for real estate investment due to its growing economy, attractive tax incentives and stable political environment. Purchasing real estate in the UAE can be an attractive investment opportunity for local and foreign buyers. However, the process of buying real estate in the UAE can be complicated as there are several legal requirements and regulations that need to be followed to ensure a smooth and legally compliant transaction. In this article, we look at some of the key conditions that need to be met to buyreal estate in the UAE.

Property restrictions:

When buying a property in UAE, there are also certain restrictions that need to be considered. Under the UAE Civil Code, real estate rights include "freehold", "yuzufruct" and "musataha". Long-term leases in the UAE are generally governed by the laws of each individual emirate. "Freehold" is the most superior form of ownership as it allows full possession, while "yuzufruct" and "musataha" are more limited in nature, granting possession for a limited time with certain restrictions. Residents can't buyreal estate anywhere they want, the UAE government has designated certain zones throughout the emirates designated for foreign ownership, commonly referred to as "freeholds". Each emirate has enacted laws to regulate these zones. In addition, there are specific rules and requirements that must be followed.

Legal status:

Buyers should make sure that the property they purchase has a clear legal status. The property must not be involved in any legal disputes or encumbrances.

Paying a deposit:

Buyers are required to pay a deposit of at least 10% of the value of the property to secure its purchase.

Financing:

If you are planning to finance the purchase of a property in the UAE, you need to first ensure that you have the necessary financing before proceeding with the transaction. This may include obtaining a mortgage or other form of financing from a local or international lender.

Document verification:

Buyers should carry out a full document check before buying a property in the UAE. This includes verifying the ownership of the property and its legal status before the relevant authority in the relevant Emirate to ensure that there are no disputes or legal issues. It is important to do a thorough check to ensure that the property is free of any encumbrances and that all necessary permits have been obtained.

Contracts:

Buyers should ensure that all contracts and agreements relating to the purchase comply with the law and accurately reflect the terms of the transaction. For example, a contract of sale should contain details such as the terms of sale, including price, payment terms and date of transfer.

Registration and re-registration:

Finally, you will need to register and re-title the property in accordance with UAE law. Re-registration of title to real estate is accomplished by issuance of a certificate of title by the Dubai Land Department (DLD) or the relevant land department of the Emirate where the property is located. Buyers are required to pay a number of fees, including registration fees, agency fees and re-registration fees, which can range from 2% to 7% of the purchase price.

In general, buying real estate in the UAE can be a complex process that requires careful consideration of legal and regulatory requirements. It is important to note that the legal requirements for purchasing real estate in the UAE can vary depending on the emirate where the property is located and the type of property being purchased. Buyers of real estate in the UAE should ensure that all the necessary conditions are met and due diligence is done to ensure a smooth and legally compliant buying process. It is therefore advisable to seek professional legal advice before undertaking any real estate transactions in the UAE.