Everything You Should Know About Property Transfer in Dubai

According to corporate lawyers in Dubai, one country that draws the most significant foreign direct investment is the UAE. The real estate sector is crucial to bring in more investment to the UAE. If a non-resident buyer makes a substantial investment in UAE real estate, they may be given a long-term visa.

Therefore, it is essential to uphold Dubai's property transfer laws. It will provide you complete freedom to use your property however you see fit through lawful means. As a result, the rules governing the sale and acquisition of land vary in each Emirate.

For additional advice, you can speak with them. As a result, this will provide you with a free space to learn about all the legal measures you can take. As a result, it will simplify things and guarantee that you have a lawful means of handling your property however you see fit. Additionally, you should remember that there will be repercussions if you disregard any of these regulations.

Who Can Buy Property in UAE?

In the UAE, anyone can purchase real estate as long as they meet specific standards. Citizens of the UAE and the GCC can obtain freehold real estate titles and any real estate interest, including usufruct and Musalaha.

In Dubai, public joint stock firms can also buy real estate. Public standard stock corporations are therefore allowed to own real estate in Dubai. Non-citizens of the UAE and the GCC are permitted to possess usufruct rights for up to 99 years, long leases, or freehold titles.

The Civil Code prohibits property transfer between individuals unless it has been duly registered. Furthermore, Dubai Law 7 of 2006 controls property registration inside the Emirate of Dubai. According to Dubai real estate law, the government's title documents are the sole acceptable evidence of property rights.

Property Transfer Process in Dubai

Corporate lawyers in Dubai recommend you must do these actions to register and transfer property in the UAE.

Due Diligence: A careful inquiry is made to ensure the seller is permitted to sell the property. As a result, the standard property due diligence procedure entails verifying the title records, seeing the property in person, and, if possible, perusing the property register.

1.      Contract of Sale

A term sheet or memorandum often contains a detailed description of the contract's terms as agreed upon by the parties. The term sheet usually has a set end date and is valid until the sale contract is signed. Typically, it depends on the results of careful research.

The sale contract should contain information regarding the property, the buyer and seller, the terms of payment, the law that will apply, the dispute resolution process, a termination clause, and any other relevant elements. It should be used if the authorities have issued a sample sale contract. Additionally, an annex also contains additional provisions.

2.      Certificate of No Objection (NOC)

You must then visit the seller at his workplace. As a result, the seller will ask for and pay for a letter of consent (NOC) to permit ownership transfer. The developer will issue a NOC if the property has no unpaid service bills.

3.      Transfer Ownership to the Dubai Land Department

The last step in lawfully buying a home in Dubai is to meet the seller at the Dubai Land Department after you've gotten your NOC.

Types of Property

According to corporate lawyers in Dubai, below are the types of real property suitable in the UAE.

1.      Freehold Property

You are granted a perpetual, unfettered, and limitless right to the property. In some areas of the United Arab Emirates, there is a significant amount of freehold land. More foreigners interested in investing in Dubai will be drawn to freehold homes. As a result, you can also buy, sell, or rent them.

Land ownership is included when you purchase a freehold home or townhouse in Dubai. This classification enables the investor to acquire complete ownership of the land for life with little red tape and no state approval. Consequently, this also refers to the transfer of Dubai real estate.

2.      Commonhold Property

Commonhold properties in the UAE are generally freehold. As a result, you are purchasing a commonhold property, such as an apartment, condominium, or non-residential unit inside a structure, rather than the actual property. The title document grants you full ownership of the team rather than the land.

According to corporate lawyers in Dubai, you can buy, rent, or sell real estate using commonhold property. For inheritance. Therefore, property or real estate developers are frequently the owners of these buildings.

3.      Usufruct

Long-term leases are an excellent way to describe usufruct properties, and a usufruct property cannot be changed or altered by the owner. Therefore, these additional alternatives, such as usufruct and Musalaha properties, are only open to ex-pats if the ownership rights fall under the limit clause.

In the United Arab Emirates, a residential lease can range from 10 to 99 years, while a business lease can be up to 50 years. You could inherit usufruct property.

4.      Non-Freehold Property

In Dubai, only locals and GCC nationals have a permit to own non-freehold properties, and foreign investors are not allowed in certain Dubai areas.

However, in recent years, the government has awarded freehold status to several developments located in these non-freehold zones.

Documents Necessary for Property Transfer

·         Original and copied passports

·         Original title deed

·         Original NOC of the developer (freehold only).

·         Contract for sale and purchase.

·         An executive check is payable to the seller.

The Final Words

A Dubai real estate attorney can offer insightful advice and knowledge to guarantee the deal happens without a hitch. A reputable law firm in Dubai, United Arab Emirates, will also have knowledgeable and proficient property lawyers to expedite the procedure. You can enlist the aid of a property lawyer to make things simpler.