- Legal Articles
- Ask Elhais
June 22, 2023|
The UAE is a popular destination for real estate investment due to its booming economy, attractive tax benefits and stable political environment. Purchasing a property in the UAE can be an attractive investment opportunity for both local and international buyers. However, purchasing a property in the UAE can be a complex process with several legal requirements and regulations that must be followed in order to ensure a smooth and legally compliant transaction.
In this article, we will explore some of the key conditions that must be fulfilled in order to purchase a property in the UAE.
Ownership restrictions: There also exists certain restrictions that must be considered while purchasing a property in the UAE. Under theUAE Civil Code property rights include “freehold”, “usufruct” and “musataha”. Long-term leases in the UAE are generally governed by the laws of each respective emirate. Freehold is the most superior form of property right as it allows for full ownership; whereas usufruct and musataha are more restrictive in nature allowing ownership for a limited time with some restrictions.
Residents cannot purchase properties in any location that they desire, the government of UAE has allocated certain designated areas in all the emirates that are specified for foreign ownership, which is generally known as “freehold” properties. There are relevant laws in place for each emirate to govern these areas. Further, there are specific regulations and requirements that need to be met.
Legal status: Buyers must ensure that the property they are purchasing has a clear legal status. The property should not be involved in any legal disputes of encumbrances. Buyers should also verify the ownership of the property and ensure that the seller has the right to sell the property.
Payment of deposit: Buyers are required to pay a deposit of at least 10% of the property price to secure the property.
Financing: If you plan to finance your property purchase in the UAE, you must first ensure that you have the necessary financing in place before proceeding with the transaction. This may include obtaining a mortgage or other form of financing from a local or international lender.
Due diligence: Buyers should conduct through due diligence before purchasing any property in the UAE. This includes verifying the property’s ownership and legal status before the appropriate authority of the respective emirate in order to ensure that there are no disputes or legal issues. It is important to conduct thorough due diligence to ensure that the property is free of any liens or encumbrances, and that all the necessary approvals and permits have been obtained.
Contracts: Buyers must ensure that all contracts and agreements related to the purchase are legally compliant and that they accurately reflect the terms of agreement. For example, a sale purchase agreement must include details such as the terms and condition of the sale, including the purchase price, payment terms and delivery date.
Registration and transfer: Finally, you will need to register and transfer ownership of the property in accordance with the UAE law. The transfer of ownership of the property is completed through the issuance of a title deed by the Dubai Land Department (DLD) or the respective land department of the emirate where the property is located. Buyers are required to pay a range of fees, including registration fees, agency fees and transfer fees which can range from 2% to 7% of the purchase price.
Overall, purchasing property 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 a property in the UAE may vary depending on the emirate where the property is located, and the type of property that is being purchased. Property buyers in the UAE must ensure that they meet all the necessary conditions and due diligence to ensure a smooth and legally compliant purchase process. Therefore, it is advisable to seek professional legal advice before making any property transactions in the UAE.
Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.
Your email address will not be published. Required fields are marked *
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.