Dubai is known to be a heart of dessert with all the glitz and glamor. The UAE is becoming popular for real estate recently. People from different regions consider this city of architecture marvelous for buying lucrative properties or starting a new lifestyle. The architectural marvels and skyscrapers of Dubai are one of the reasons investors come here to diversify their financial portfolios.
As the amendments in the law have persuaded many foreign investors to buy property like apartments and houses in Dubai, it has become a prime real estate market. With hundreds of properties for investments, the real estate industry of the emirate is flourishing in today’s world.
However, the procedure can be daunting, especially for first-timers. There are certain legal aspects that you need to bear in mind as the law is strict there. You can easily find lawyers in Dubai with specialties that match your case.
Can foreigners get property in Dubai?
The most common question that expats come across while thinking of buying a property in Dubai is how to make a start? Property ownership for expatriates is allowed only in freehold areas. That means foreigners can only have freehold ownership rights. The DLD will issue the title deed and any foreign candidate can get the land as there is no age limit.
Some popular freehold areas include Business Bay, Discovery Gardens, Downtown Dubai, and so on.
What restrictions could they face?
Expatriates were unable to buy property in the emirate at the start of the new millennium. But, new legislation has given the right to buy property in Dubai by removing the restrictions. However, as said above that expats can buy land only from freehold areas, there are still some specific areas restricted for them but they have plenty of options in freehold areas.
So, you can say that;
Now you do not need to have a specific residence in Dubai for investment.
No need for foreign buyer permits.
Buying property in the light of the law
In the light of Law NO. 7 which is a land registration Law, UAE and gulf country citizens can buy land in the emirates. The same law also discusses the rights of foreigners to buy property in the UAE with a small restriction that they can buy property in the areas designated for ownership. Emirates offers two types of property ownership which are leasehold and freehold. Both differ in the buyer’s rights. Freehold property gives the buyer the possession of the property and the land it builds on. However, in a leasehold, you get property only for a limited period.
4 legal steps to get it done
To buy a property, you need to follow some legal steps. There is nothing different in the UAE. The rules of buying property there are straightforward. You just need to follow the legal procedure to get the house to live in or find a lucrative property.
Below are the four steps investors should be aware of beforehand.
1. Formulation of contract
The first step consists of the formation of a contract between the seller and the buyer to buy the property. You negotiate the terms and outlines with the seller and decide the purchase method. Cash or mortgage are two options. You do not need to consult any lawyer or agent to cover the first stage. One thing you must ensure here is to clear all obscurities about the price, mode of payment, etc.
2. Signing the memorandum of understanding (MOU)
MOU is the sale agreement. You can check the form on the Dubai Land Department website. Once the contract is made, which is the responsibility of the real estate agent, both parties sign the agreement in the sight of witnesses at the Registration Trustee Office. The buyer has to pay the refundable security deposit of 10% as well which is returned after the final transfer.
3. NO objection certificate (NOC)
The no-objection certificate is essential for the transfer of ownership. Your next step is to have a meeting at the developer’s office and pay for the NOC. You can get it once the procedure is done.
4. Attaining the ownership
The last step is to meet the seller at the Dubai Land Department for the transfer. For that, you will need some documents like a payable cheque, original identification documents, original CNIC, and the signed contract. After the formalities, you officially get the ownership. Being in touch with property lawyers can make the procedure easy for you. So, make sure to hire one on priority.
In a nutshell, you can get heights of luxury, charm, and elegance at the cost of investment in any metropolitan city like Dubai and get the lifestyle of your dreams.