5 legal tips every home buyer should know

Buying a property in Dubai is one of the best and probably the most significant investment decisions you will ever make in your life. Over the past few years, the Dubai property market has gone through a lot of changes that make it easy to acquire property even for non-nationals.

If you are looking to buy a property in Dubai, you should consider Meraas Bluewaters Residences. This is because they are currently being sold off-plan at a lower cost than the completed ones. Also, the payment terms are very friendly.  Dubai Creek Harbour projects, Emaar Beachfront apartments, Port de la mer are few most prominent new real estate projects in Dubai.

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Below are some legal tips for home buyers in Dubai:

i.             Ownership

The law no. (7) of 2006 was one of the first laws that facilitated foreign investment in Dubai. This law provides the right to freehold ownership of property without time restrictions. It also provides the right to lease a property for a period not exceeding 99 years.

ii.            Non-GCC nationals

There are two main ways in which you can acquire a property in Dubai if you are a non-GCC national.

·         Individual- it is the most popular method of property ownership in Dubai. This way, you can purchase the property as an individual and register in your name.

·         Joint ownership- This method allows ownership of a property for up to four people. The title deed and the register will recognise all the individuals involved as joint owners of the property.

iii.           Brokers and agencies

Law No. (85) of 2006 regulates real estate brokers and agents in Dubai. According to the law, an agent or agency cannot conduct any activity without being registered by the Real Estate Regulatory Authority (RERA). Therefore, when buying a property, you have to ensure that the agent you are dealing with is registered. Also, agents are not permitted to accept cheques in their own names. All cheques must be addressed to the seller or landlord.

iv.          Mortgage

According to law No. (9) of 2009, a mortgage is not valid unless it is registered by the Dubai Lands Department (DLD). Any agreement that is not registered is null and void. The mortgagor (owner of the property) bears the cost of the contract unless otherwise agreed. The fee of registering a mortgage is 0.25% of the loan amount plus AED 4100. On the other hand, buyers are not allowed to seek personal loans or use their credit cards to pay for a down payment of the mortgage.

v.            Jointly-owned property

Law No. (27) of 2007, also known as STRATA law, allows property owners of a master community to form an association for the purpose of managing expenses and managing the community. The owners association is a non-profit organization and has a separate legal entity from its members. This means the association has the right to sue or own movable assets.