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Insights - Understanding the Legal Steps for Purchasing Real Estate in Dubai
Understanding the Legal Steps for Purchasing Real Estate in Dubai
- Better Informed
- 17 Nov, 2023
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Purchasing any real estate property in Dubai is tricky and requires some legal procedures and knowledge. As a foreigner or an expatriate, there are certain steps that one has to follow regarding the purchase of such properties in Dubai. The regulation of the real estate sector in Dubai is in the hands of the Real Estate Regulatory Authority (RERA). RERA safeguards investors and maintains fair conduct within the real estate business. It governs all transactions that involve the purchase, selling, leasing and mortgaging of a property. This blog provides an overview of legally buying property in Dubai.
Laws For Buying Property
Law No. 7 of 2006, known as the Land Registration Law, deals with the legal procedures involved in purchasing properties within Dubai. Article (7) of this law narrates who can buy and own property in Dubai. It states that you can purchase a property anywhere in Dubai if you are
- A UAE Citizen
- A Gulf Cooperation Council Citizen
Under this law, foreigners from non-GCC countries can buy property in Dubai, but only in specific zones approved for foreign investment. The applicable laws are promulgated by the Ruler of the Emirate of Dubai from time to time through decrees and regulations within the areas. This law is implemented by the Dubai Land Department (DLD).
The Legal Steps To Buy a Property in Dubai
There are four legal steps involved in buying a property in Dubai. Follow these steps for a successful real estate purchase.
Agree to The Terms Of Sale
Once you have found your ideal property in Dubai, it is time to begin negotiations with the seller to agree on the terms of the sale. It is strongly recommended that you use a qualified real estate agent because they will negotiate on your behalf to ensure that you get the best deal. At this stage, you should agree on the purchase price, payment method, and other important details, like whether any furniture is included in the sale, to avoid further problems.
Sign The Memorandum of Understanding
Once the main points have been agreed upon, participants must sign a Form F or Memorandum of Understanding. This document can be downloaded from the official website of the Dubai Land Department (DLD). This document will serve as the basic structure of the contract, but the buyer and/or seller’s terms may be incorporated. If you are new to the Dubai real estate market or there are complexities to the sale, then using a conveyancer can be a good idea to ensure that the agreement is legally compliant and has your best interests in mind.
Once the Form F is complete, the buyer, the seller, and a witness should sign it. This is normally done at the Registration Trustee’s office. You should pay a 10% security fee for a property, which is refundable once the property is transferred to you.
Applying For NOC From the Developer
After signing the MOU, it is necessary to apply for a No Objection Certificate (NOC) from the developer. The buyer, seller, and real estate agent must meet at the developer's office. This document will confirm that no outstanding service charges are due on the property.
Transferring Ownership At DLD Office
Now, both parties have to visit the Dubai Land Department to transfer the ownership of the property. The following document should be taken to the DLD office before a visit:
- A cheque for the property price, payable to the seller
- The original identification documents of the buyer and seller (Emirates ID, passport)
- The original NOC issued by the developer
- Signed Form F (MOU)
The transfer of the property is done in a few short steps:
- Submission of the above documents
- The data is verified
- Payment of the necessary fees (outlined below)
- Confirmation received by email, and a new title deed issued
The transfer can take place in a single day. The buyer will receive a confirmation email, and a new title deed will be issued in their name to confirm that they are the new owners.
Designated Areas For Foreign Ownership Of Real Estate
The Dubai Land Authority has provided a list of areas where expats may buy properties. They are permitted to buy properties within the restricted freehold zones. To avoid falling for fraudulent real estate purchases, one ought to consult the local legal bodies and the Dubai Land Department. Here is a list of some of the preferred areas where a foreigner can acquire a property:
- Dubai Marina
- Jumeirah Lake Towers (JLT)
- Business Bay
- Downtown Dubai
- Emirates Hills
- DAMAC Hills
- Jumeirah Village Circle (JVC)
Fees & Costs Associated with Buying A Property in Dubai
The costs and additional fees associated with the purchase of the property in Dubai are given below:
Conclusion
Understanding the legal framework is essential for purchasing property in Dubai. Dubai real estate law ensures transparency and protects all parties involved in property transactions. As a buyer, it is your responsibility to conduct thorough due diligence on the property, fulfil financial obligations according to the agreed schedule, and participate actively in the official registration process at the Dubai Land Department.
At Betterhomes, we guide you through every stage, from initial search to successful acquisition. Partner with our expert advisors, who possess in-depth knowledge of current regulations, to ensure a smooth and secure investment journey. Ready to take the next step? Explore our extensive property portfolio today and let Betterhomes turn your Dubai property aspirations into reality.
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Frequently Asked Questions
What is a title deed?
A title deed in Dubai is the official and legally binding proof of property ownership. This document outlines your rights as the property owner, including the right to use, mortgage, sell or lease the property.
What is a trustee office in Dubai?
The Dubai Land Department authorises Trustee Centres or Trustee Offices in Dubai as intermediaries between the DLD and clients. They are responsible for verifying property documents, ensuring compliance with DLD regulations, and facilitating real estate transactions.
Can You Buy Property in Dubai Without an Agent?
Yes, you can. In Dubai, there are different communities where you can get a property directly from the developer or individuals selling their units.
How Much Deposit Do I Need to Buy a House in Dubai?
To purchase a property, UAE nationals must deposit at least 20% of the property's value. For expats, the minimum deposit is usually around 25%.
Is it easy to buy an apartment in Dubai?
As of 2025, the procedure for purchasing property in Dubai has become easier to cope with than the real estate acquisition processes found in many Western countries, making it a simple experience for buyers.
