Dubai property laws for real estate investors

Are you an investor who wants to enter Dubai’s real estate market? If yes, you need to be familiar with Dubai’s property laws. Failure to do so may lead to future regret and unsafe deals. Since real estates can be a very costly investment, it is must that you seek legal counsel from a qualified real estate lawyer Dubai.

To ensure that you make the right investment, here are some of the things you need to know about Dubai’s property laws.

What are the Real Estate Laws in Dubai?

Dubai is one of the seven Emirates of the United Arab Emirates (UAE). While the UAE has its own legislation, Dubai, as well as the other Emirates, can pass their own property laws that supplement the Federal Law of the UAE.

In Dubai, through Law No. 7 of 2006 and no. 16 of 2007, Real Estate Regulatory Agency (RERA) was created. They are the focal regulatory authority in property laws. Moreover, if you want to know the specific areas where non-UAE nationals can invest in, you should check Regulation No. 3 of 2006.

Here are other laws that you should also be familiar with when investing in Dubai:

• Law No. 8 of 2007 – this law concerns the escrow accounts for real estate development. 

• Law No. 26 of 2007 – basically, this is about Dubai rental law. It primarily outlines the rights and responsibilities of landlords and tenants. 

• Law No. 27 of 2007 – this law concerns the construction and development of multi-use properties and multi-story buildings. 

• Law No. 13 and No. 14 of 2008 – outlines the registration of mortgage interests.

• Law No. 9 of 2009 – regulates resolutions on how to deal with disputes and issues arising from the cancellation of real estate contracts. In this case, you might as well hire property dispute lawyers Dubai to help you meet legal requirements.

• Law No. 56 of 2009 – regulates disputes that have to do with settling real estate transaction cheques.

• Law No. 7 of 2013 – enacted the establishment of Dubai Land Department (DLD). 

Who can own a real estate property in Dubai?

For many years, the UAE nationals are the only ones who are allowed to own a real estate in Dubai until Regulation No. 7 of 2006 was enacted. Due to the increased interest and pressure of foreign investors, Sheikh Mohammed bin Rashid al Maktoum declared that non-UAE nationals can apply for 10 to 99 years of leases in selected areas.

If you are a foreign investor, you would need to obtain a residential permit first to live in Dubai and consequently, purchase a property. Please note that a residential permit does not allow you to work legally in Dubai.

For UAE nationals and Gulf Cooperation Council (GCC) nationals, they can fully own a property anywhere in Dubai. This is not the case with foreign investors who are only allowed to own freehold, leasehold, and usufruct properties in designated zones.

Seeking legal help

It is no doubt that the laws surrounding properties in Dubai can be very complicated. It takes a lot of effort to ensure that you understand every bit of the property law. Of course, you can study all the nitty gritty details of Dubai’s property laws or you can simplify the process by hiring the expert property attorneys of Motei & Associates. They have the right experience, training, and knowledge in handling property cases. Give them a call today!

Do I need a property lawyer to verify land clearance?

Are you planning to purchase a property in Dubai? If yes, you need to be ready to comply with the different legal requirements. While the whole process of buying a property can be done by yourself, it could easily get overwhelming and stressful. That’s why more and more people are seeking the help of a real estate lawyer in Dubai.

One of the most challenging aspects of purchasing a property in Dubai is finding the right one. You cannot simply choose the first property you could find. In Dubai, property investment can be very costly and you definitely do not want your money, time, and resources to go to waste.

Once you found a property, you would need to do a quick background check on it. Most importantly, you must verify its land clearance situation. Again, you can do this on your own, but you won’t be as effective as having a property attorney on your side.

So, how can a lawyer help you verify land clearance? There are plenty of ways and here are some examples:

• Checking for clear title papers – a title deed shows the ownership of the property. It gives the rights to the owner to use the property in any legal ways they desire. Defective titles can delay the process of purchasing a property and even cancel it. 

• Checking of property tax receipts – you do not want to buy a property with tax issues. A lawyer can check this one for you.

• Checking the authorised land use – In Dubai, lands are systematically divided. There are areas where you can use a land for a certain purpose only. For example, if you are a non-UAE national, you cannot simply buy a property anywhere. You would need to find properties in free zone or those areas assigned by the government for foreign investors.

• Checking for any encumbrance – there are different factors that may prevent a property from getting sold. For instance, if you are buying a resale property, you need to check if it has a mortgage on it or not. If the property is being contested, the court may issue a lien on it as well. There are also instances where a property does not meet local development approvals. Now, these are just some of the examples that could complicate things. Seeking the help of a legal advocate in Dubai is always a wise decision.

Ensuring that you are buying the right property is crucial in your investment. You do not want to regret your choice in the future. While you may need to pay legal fees for hiring a property lawyer, having the peace of mind is priceless.

A property lawyer can do more than just check the land clearance of a property. If you want to know more, it is highly advisable that you get in touch with Motei & Associates. They have the right experience, expertise, and market knowledge to provide professional real estate legal advice. Give them a call today!