Step-by-Step Guide: What You Need to Know When Buying Property in Dubai

Do you want to know about the legal procedure to buy a property in Dubai as an expat? Whether you’re from India, the UK, or elsewhere, Dubai welcomes you with open arms. UAE laws allow you to own property here, and with a few easy-to-follow steps, your dream home can be a reality.

Dive into this guide to get all the info you need to make your Dubai property journey smooth and hassle-free!

1. The Law Behind Buying a Property in Dubai?
2. Difference Between Freehold and Leasehold Ownership?
3. What Are the Requirements to Buy a Property in Dubai?
4. What Are the Steps You Should Follow to Buy a Property in Dubai?
5. What Are the Admin Costs of Buying a Property in Dubai?
6. Can You Buy Property in Dubai Without an Agent?
7. What Is a Trustee Office in Dubai?
8. What Is a Title Deed in Dubai?
9. How Much Salary Is Required to Buy a House in Dubai?
10. How Much Deposit Do I Need to Buy a House in Dubai? 
11. How Long Does it Take to Buy a Property in Dubai? 
12. Things to Consider While Buying a Property in Dubai
13. FAQs

1. What Is the Law Behind Buying a Property in Dubai?

Law No. 7 of 2006 is the main reference and regulation regarding owning property in Dubai. The law entitles UAE and GCC residents to buy property anywhere in Dubai.  As for the foreigners, they can buy their property in areas designated as freehold or leasehold. 

2. What Is the Difference Between Freehold and Leasehold Ownership?

The difference between them is that freehold ownership gives you full ownership of the property without restriction, while leasehold allows you to own the property for a set period of time, which is up to 99 years.

3. What Are the Requirements to Buy a Property in Dubai?

If you’re buying property in Dubai for the first time, you’ll need a few key documents. These include

• Passport
• Visa 
• proof of income 
• recent bank statements 
• No Objection Certificate (NOC) from the developer
• Details about the property 
• Purchase agreement 
• Payment information 
• The seller’s identity proof. 

4. What Are the Steps You Should Follow to Buy a Property in Dubai?

The procedure to buy property in Dubai is the same either for owning a home or having a profitable real estate investment in Dubai. To know more about them in detail, check the below steps:

Step 1: Prepare the Buyer/Seller Contract

When you’ve zeroed in on the ideal property, initiate a conversation with the seller to discuss terms. You have the flexibility to pay upfront in cash or consider a mortgage. While this phase doesn’t mandate the involvement of a real estate agent or lawyer, it’s crucial to draft a contract that is precise.

Ensure it clearly outlines the pricing, payment methods, and all pertinent terms to avoid any future misunderstandings.

Step 2: Sign the Real Estate Sale Agreement

You can easily download the sale contract (Form F), which is also known as a Memorandum of Understanding (MOU), from the official website of the Dubai Land Department (DLD). 

Beside, tou’re free to include your own terms in the contract. Once it’s all set, both you and the seller should sign it in front of a witness, ideally at the Registration Trustee’s office.

Moreover, you should pay an amount of 10% as a security deposit on the property to the Registration Trustee, you receive them once the whole transaction is completed.

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Step 3: Apply for No Objection Certificate

At this point, you’ll have a quick chat with the developer to get a No Objection Certificate (NOC) and finalize the ownership transfer. If there are no outstanding service bills or charges on the property, the developer will issue the certificate.

Step 4: Transferring Ownership at the Registrar’s Office

You should prepare the needed documents, attend in person, or send your authorized representative. Wrapping up the transfer takes just a few steps.

1. Submit the required documents. 

• A payable cheque for the property price 
• Original identification documents of both seller and buyer (Emirates ID & passport) 
• The original NOC 
• The signed contract of F Form 

2. Get verification of the data
3. Pay the fees and receive a receipt for payment
4. Receive the output through email.

The transfer will be processed on the same day if the parties submit their documents early. Besides, after receiving the approval email, a new title deed will be issued in your name as the new owner. 

5. What Are the Admin Costs of Buying a Property in Dubai?

The admin fees are a great detail to consider while buying a new home in the Emirates. Find below the fee in detail:

• Issuing the Title of Deed: AED 580
• Admin fees to DLD: AED 4,200
• Fees for the DLD are 4% of the property value.

6. Can You Buy Property in Dubai Without an Agent?

Yes, you can. In Dubai, there are different communities where you can get a property directly from the developer or individuals who are selling their units.

7. What Is a Trustee office in Dubai?

Trustee Centres or Trustee Offices in Dubai are offices that are authorised by the Dubai Land Department to act as an intermediary between the DLD and clients. 

These offices offer a range of services, including:

1. Overseeing property registration
2. Managing mortgage
3. Facilitating transactions. 

Specifically, they are responsible for verifying property documents, ensuring compliance with DLD regulations, and collecting transfer fees required by the Dubai Land Department. 

Additionally, they liaise between all involved parties, ensuring a smooth and legally compliant process for property sales, purchases, and leases. 

Trustee Offices in Dubai are instrumental in maintaining the integrity and efficiency of the real estate market, making them essential for both local and international investors and property owners.

8. What Is a Title Deed in Dubai?

In Dubai, a title deed is an official and legally binding document issued by the Dubai Land Department (DLD) that certifies the ownership of a property. 

Moreover, this document outlines the owner’s legal rights, like the right to use, mortgage, sell or lease the property. 

Any title deed should include the following details: 

• Owner name
• Property location
• Size
• Property type. 

If you paid for your property in full, then the title deed should be exclusively in your name. As an owner, you should note that this document is critical in any real estate transaction or dispute.

9. How Much Salary Is Required to Buy a House in Dubai? 

The salary you need to buy a house in Dubai depends on the property’s location and type. Generally, banks prefer that you earn at least AED 15,000 a month, but some might consider you even if you’re earning less, sometimes under AED 10,000. 

10. How Much Deposit Do I Need to Buy a House in Dubai? 

If you’re a UAE national, you’ll typically need to put down at least 20% of the property’s value. For expats, the minimum deposit is usually around 25%. 

11. How Long Does it Take to Buy a Property in Dubai? 

The process of buying a property in Dubai can take from 2 to 10 weeks. It might take longer if the property is already mortgaged or being purchased with a mortgage.

12. What Is the Best Way to Buy a Property in Dubai?

Buying property in Dubai can be straightforward if you follow a few key steps:

• Check your affordability: Start by figuring out how much you can realistically afford.
• Start saving: Begin setting aside money for your down payment and other expenses.
• Know your ideal property: Decide on the type of property you want and where you want to live.
• Get an Approval in Principle: Secure a preliminary mortgage approval to know your budget.
• Make an offer: Once you find the right property, put in an offer.
• Apply for your mortgage: Finalize your mortgage application to secure financing.
• The legal work: Complete the necessary legal procedures to finalise your purchase.

13. How Much Money Do I Need to Buy a House in Dubai?

The amount of money you need to buy a house in Dubai varies by location and your needs so there is no such minimum or maximum amount to own a home. However, it’s advised that if you are buying in instalments, they should be a maximum of 30% of your income so you can afford to live while paying the property payments.

Things to Consider While Buying a Property in Dubai

• It’s recommended to only deal with real estate agents who are registered with RERA.
• Documents written in a Foreign language must be attested and submitted with certified translations into Arabic.
• The transactions must be registered within 60 days from the date of signing the contract by both parties.
• Some prominent freehold districts where foreigners can buy property in Dubai are Arabian Ranches, Palm Jumeirah, Dubai Marina, and Downtown Dubai.

FAQs

Now you have your full guide to legal procedures for buying a property in Dubai. Investing in real estate in Dubai is easy and straightforward.

Finding the best property option is not a hassle anymore as you can have a look at the different properties for sale in Dubai on Property Finder.

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