UAE Real Estate Knowledge: You must Have

The United Arab Emirates (UAE) is a country where you can live a luxurious life with your family. However, it also provides security and protection of the rights of the citizens and expatriates. While choosing a property in the UAE, there are concerns about real estate. You should know that the land you have purchased is not disputed. Hiring a property lawyer would be a good option to avoid problems and save money.

Yes, many expatriates have shifted to Abu Dhabi and Dubai. The UAE attracts numerous investors each year. Therefore, it has opened various options for foreigners to settle in any of the seven emirates. Entrepreneurs have found lucrative opportunities in the Dubai markets. The profits are flourishing in their business, and the real estate market of the UAE is booming. Some emirates, like Sharjah, are cheaper than Abu Dhabi and Dubai. People have also shifted to other emirates because every emirate has different rules and regulations that comply with the UAE federal laws. For a good family life and better business opportunities, the UAE is working amazingly with its high economic growth. Lawyers in Dubai also helping a lot to expatriates to invest here in different businesses. Dubai lawyers are also quite popular in real estate cases and also known as Dubai Real Estate Lawyers.

Laws govern everything in the UAE. Real estate laws are developed to ensure that property remains undisputed and easy to buy for individuals in the real estate industry. According to the law of real estate, property is defined as a tangible asset or land that cannot be removed unless it is damaged or thought to be broken with heavy machinery. Kindly always take a legal appointment with lawyers before proceeding in to any investment, real estate investment etc. Lawyers in Dubai can certainly help you in buying, selling and investing in businesses.

The UAE has a diverse legal system that blends Islamic, local, and federal laws. Dubai’s free zones have laws and regulations related to real estate. However, the UAE Civil Code oversees routine administrative matters. Articles 121 and 122 of the UAE Constitution 1971, revised in 2009, authorize the emirates to resolve the matters independently, especially when the federal government has yet to take control of those issues.

Therefore, unless the federal laws govern the emirate, Dubai, Abu Dhabi, Sharjah, and other emirates can rule independently. Consequently, the emirates manage local matters, whereas the federal government oversees the issues at the national level.

There are three types of real estate against which the UAE nationals can enjoy the real property rights:

The real property rights in the UAE are real rights (the rights that are not related to a specific person but are legal actions for the property itself). There are two types of rights:

To have real property rights, all properties must be officially registered and legal to ensure real estate property laws can be enforced. Dubai has different properties, including freehold, leasehold, usufruct, and Musalaha. To implement effective real estate laws, they all must be registered under the Dubai Land Department. Off-plan property is registered in the Interim Register, whereas leases not over 10 years old are registered with Ejari.

However, in Abu Dhabi, real property rights are enforced on usufruct and Musalaha properties, which shall be recognised under the Abu Dhabi Global Market (ADGM), irrespective of their duration, and registered with the ADGM Land Register.

Let’s see what properties you own that have real property rights in Dubai. Every Dubai property must register with the Dubai Land Department and Real Estate Regulatory Agency (RERA). The mortgages are maintained as per the Law No. 14 of 2008. Abu Dhabi has clarified the difference between long-term and short-term leases based on duration. A short-term lease is at most 10 years, whereas a long-term one lasts 99 years. However, both leases shall be registered under the Tawtheeq system in Abu Dhabi. All lease holdings are registered with the ADGM Registrar. The tenant is responsible for registering and paying the fees. The lease that lasts between 4 and 20 years shall be registered with the Tamleeq system. The responsibility to register the lease shall be mentioned in the lease.

Numerous documents will prove the ownership of the real property. However, to own a property right in Dubai, the Dubai Land Department shall issue the property agreement, depending on the property type. A property lease for less than 10 years shall have an Ejari certificate, which the Land Department issues. Leases issued for 4 to 24 years in Abu Dhabi shall have a registration certificate from Tamleeq.

The title cannot be searched online but shall be inspected physically. However, potential buyers can visit the Dubai Land Department website to do a validation search on the ownership of the property. The information through this search would be related to the owner’s name and the property’s legal status. However, the online verification does not examine the physical title deed, which is only available in the physical form and may have additional information offline.

Some lands foreigners can own. However, in Dubai, only the UAE nationals, member states of the Gulf Cooperation Council (GCC) and public joint-stock companies can own the property. If you are a foreigner, you can own the freehold properties without any limitations and a usufruct or become a leaseholder for a property that does not exceed 99 years.

Foreigners can acquire freehold properties, as the ruler of Dubai allows. Consequently, an international vehicle company can acquire a freehold or leasehold property if it establishes its business in Dubai International Financial Centre, a free zone of ADGM, or has 51% shares of UAE nationals in LLC. There are many other areas where foreign companies can establish themselves. You should know that a trust cannot own the property in Dubai.

In Abu Dhabi, property in the investment zone can only be acquired by UAE nationals with real property rights. However, foreign ownership cannot be taken for Musalaha, usufruct, or long-term leased properties.

The answer is positive. According to real estate laws, the UAE government can acquire land from a UAE national and build something better for public use. Article 1135 of the Civil Code has allowed the authorities to acquire real estate for public interest, such as building highways. Moreover, the emirates have their real estate laws, and they can work it out accordingly.

Several investment structures work in UAE real estate. Property ownership is usually held by tenants or in the name of a business entity. Secondly, investments can be made in specific projects to buy or develop land, known as special purpose vehicles (SPVs). These structures create financial and legal protection and keep liabilities from the core business operations.

Land in the UAE is usually bought with the buyer’s money or bank loans. Documents are presented in real estate transactions. The transaction happens when the broker has a Memorandum of Understanding (MoU) on behalf of the buyer and the seller. An MoU is a document that outlines the core commercial terms agreed between both parties. The seller has to draft a sale and purchase agreement after signing the MoU with the buyer. However, the buyer will carry out necessary tasks to ensure they have received a good deal from the seller.

If there is indemnity in the property, the buyer expects the seller to clarify and complete it before the real estate can be sold. However, the tenant has to return the property after the lease expiry, in the same condition they bought from the landlord. Nevertheless, the landlord is liable if the indemnity damages the environment.

To sell a property, you have first to buy it. You can only buy properties in free zones if you are an expatriate. You can sell the property if you own the UAE land. However, it is the same process as when you bought the land. A listed agent will be required to get you through a smooth transition of selling the property. However, you should pay the agent fees, and if there are any repairs to the property, they shall be covered by the seller before selling the property.

The taxes on Dubai rentals are small. A 20 – 25% down payment is required from UAE nationals, whereas non-UAE nationals should pay 50%. Expats can get a property on a mortgage based on their residency status and credit history

Since Dubai has become a global market, the influx of expatriates has also increased. However, Dubai properties are being sold highly for their affordable prices and effective real estate laws governed by local laws.

If you are a foreigner in the UAE, no matter what emirate you live in, you should have a real estate agent. They will guide you through the properties you can buy and confirm the legal status of the land. If it is disputed land, you must not buy it because that will be a huge problem for you in the future. Moreover, you must look at the neighborhood to ensure your safety.

Nowadays, entrepreneurs and investors are encouraged to apply for the Golden Visa for longer stays. The Golden Visa could be a good option if you wish to settle in the UAE. All you need to do is invest in one of the UAE residencies with a certain threshold so you can apply for the Golden Visa. You can buy an off-plan property, which is cheap since the work still needs to be completed. The value of that property increases when it is completed, and you can earn profit by selling it in the later years. It has flexible down payments.

The UAE caters to everyone who wants to settle with a good prospect of working in the Emirates and contributing positively to economic growth. You must explore the UAE markets for jobs and investments and expand your business. Nowadays, millions of people worldwide explore the UAE market, and most of them have successfully settled in different emirates. You should hire an immigration lawyer to get you to the UAE and then hire a property lawyer to guide you through the properties in the emirate where you plan to live.

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