Are you looking to transfer property in Dubai?
If so, you need to be aware of the UAE laws and regulations governing property transfer. Our team of experienced lawyers can help you navigate the legal process and ensure that your property transfer is completed smoothly and efficiently.
We understand that property transfer can be a complex and daunting process, which is why we offer a comprehensive range of services to our clients. From drafting the necessary documents to representing you at the Land Department, we will be with you every step of the way.
Contact us today to learn more about our property transfer services. We would be happy to discuss your specific needs and answer any questions you have.
We look forward to helping you with your property transfer needs.
Federal Law No. 5 of 1985 is the main piece of law that deals with land ownership rights and specifies several types of property (Civil Code). Nevertheless, for more information, it is advised to refer to each Emirate’s published laws on the acquisition and sale of land.
Who may buy real estate in UAE?
Anyone can buy real estate in the UAE, provided they meet certain standards. In accordance with Article 4 of the Property Ownership Law, individuals who are citizens of the UAE, the GCC, or companies incorporated in the UAE (outside of free zones) and wholly owned by UAE, GCC, or individual citizens are entitled to hold freehold title to real estate,
and to acquire all types of real estate interests, including usufruct, musataha, and long-term leases up to 99 years located in any region of the Emirate of Dubai. Public joint stock firms are also allowed to own real estate in Dubai. A UAE-incorporated company having shareholders who are not UAE or GCC citizens, however, will not be recognised as a UAE or GCC national.
Non-citizens of the UAE or the GCC may own freehold titles, lengthy leases, or usufruct rights for a period of up to 99 years.
Read Also: Top Property Disputes Lawyers UAE
What is a property transfer?
According to the Civil Code, property cannot be legally transferred between parties until it has been registered. According to Dubai Law 7 of 2006, which governs the registration of property in the Emirate of Dubai, any actions related to the creation, transfer, modification, or withdrawal of a property right are null and invalid unless recorded in the property register. Title deeds issued by the government are regarded as the only legal documentation of a person’s property rights in accordance with Dubai real estate legislation.
Dubai’s property transfer process
In general, the following procedures must be followed in order to transfer and register property in the UAE.
Taking Care
To confirm that the seller has complete authority to sell the relevant property, a detailed study of the property is conducted. The normal property due diligence procedure includes examining the title records, inspecting the property in person, and, if possible, reviewing the property register.
Agreement for Sale
Term sheets or memorandums of understanding signed by the buyer and seller frequently contain the fundamental elements of the contract as agreed upon by the parties. Frequently, the term sheet has a predetermined end date and is only valid up until the sale contract is signed. Additionally, it usually depends on rigorous due diligence coming to a satisfactory conclusion.
The sale contract should contain information on the property, the buyer and the seller, the purchase price, the terms of payment, the applicable law, the dispute resolution process, and a termination clause. If the government has established a model sales contract, that document should be used together with an annexure explaining the new clauses.
Request for a Certificate of No Objection (NOC)
The next step is to schedule a meeting at the developer’s office with the seller. We shall ask for and buy a letter of authority (NOC) to transfer ownership. If no outstanding service bills are discovered on the site, the developer will then issue the NOC in exchange for a charge.
Ownership change through the Dubai Land Department:
Meeting the seller at the Dubai Land Department’s office is the last stage in legally purchasing a property in Dubai and is necessary so that the transfer may take place once you’ve gotten the NOC.
You might be interested in learning How to Handle a Tenancy Dispute Case in Dubai.
Property Types:
The following is a list of the types of real estate that are permitted in the UAE.
Freehold Real Estate
It is the limitless, everlasting right to possess the land. Some areas in the United Arab Emirates are thought of as freehold land. Since they may be rented, sold, or inherited, freehold properties are the ones that foreigners interested in investing in Dubai most frequently look for. When you purchase a freehold villa or townhouse in Dubai, you also acquire land ownership.
With minimal paperwork and no official approval, the investor in this group enjoys unrestricted ownership of the property for all time.
Commonhold Real Estate
In the UAE, freehold homes are often classified as commonhold properties. You are only buying the unit when you purchase a common hold property, such as a condominium, an apartment, or a non-residential unit in a building. As a result, you receive a title document and full ownership of the apartment but not of the land on which it is situated.
You have the individual right to buy, sell, or rent a property for inheritance purposes if it is a commonhold property. These buildings are typically owned by real estate or construction companies.
Usufruct
Usufruct properties can be thought of as simple leases for long-term investments. An occupant has no authority to make changes to usufruct property. If ownership rights are not allowed, expats might pick these alternative options, such as usufruct property and musataha.
Residential lease periods in the United Arab Emirates can last 10 to 99 years, while commercial lease terms can last up to 50 years. Usufruct characteristics can also be inherited.
Non-Freehold Real Estate
Non-freehold real estate in Dubai is solely accessible to locals and GCC nationals. Real estate purchases by foreign investors are prohibited in some Dubai localities. But in recent years, the government has granted freehold status to a number of projects inside a few non-freehold zones.
Documents needed to transfer property
- Passport (original and copy)
- first title deed
- the initial NOC from the developer (freehold only)
- Purchase and Sale Agreement (certificate of property ownership)
- Managerial cheque made out to the vendor
Sara Advocates and Legal Consultants can help you with your property transfer process. Our lawyers will make sure everything is files properly and the whole process goes through smoothly. For further assistance visit our office or call our number now.
Read Also: Gifting Property in Dubai
