Dubai Land Department (DLD) falls under the Executive Council of Dubai, headed by HH Sheikh Hamdan Bin Mohamed Bin Rashid Al Maktoum, Crown Prince of Dubai. DLD provides a range of real estate related services of which the most prominent is documenting property sales and purchases, issuing real estate ownership, organizing and promoting investments. The department strives to provide the best services to its clients and to facilitate customer transactions, a culture inspired by the vision set by the Emirates’ 2021 plan.
For more info on the Dubai Land Department visit www.dubailand.gov.ae
Real Estate Regulatory Authority (RERA) forms part of the Dubai Land Department and is a government authority which licenses agents, brokers and developers plus it regulates all real estate activities in Dubai.
As per Law no. 85 of 2006 regarding the regulation of real estate brokers, these are some of the requirements for brokerages in the emirate:
Dubai Electricity and Water Authority.
For more information on this government authority please visit www.dewa.gov.ae
A municipality fee in the amount of 5% of the rental price divided across the year and included as part of the DEWA bill.
District cooling means the centralized production and distribution of cooling energy. Chilled water is delivered via an underground insulated pipeline to residential buildings to cool the indoor air of the buildings within a district. Chiller fees are being charged with your water and electricity bills and will reflect on your DEWA bill.
The purchase of a property on a freehold ownership basis means that the property is registered in the owner’s name by way of a Title Deed registered in the Dubai Land Department. The owner has the right to sell or lease his/her property at his/her discretion.
In order to purchase property in the UAE, you must be over 21 years of age. If you satisfy this requirement, the first step is to make an offer. A formal Sales and Purchase Agreement is drafted and agreed upon between two parties; a deposit is made; the buyer obtains financing – if needed; the seller ensures that the property is not encumbered by anything that goes against what has been stipulated; final payment is made by way of a bank draft or cash in the Land Department and the Title Deed is transferred to the new owner. There are several charges that may apply, such as: clearance of a mortgage, a new mortgage, administration fees etc. Always be sure to have extra cash in these unforeseen circumstances.
There are different sets of protocols depending on whether you purchase a completed property from a developer where you are the first time buyer, or buying a property that is not constructed yet, referred to as ‘off-plan’. If the purchase is from a developer, there is a payment plan, and at times mortgage and/or finance options in place.
If the buyer is obtaining financing, the seller will often require that an expat be pre-approved for home financing before signing of the Sales and Purchase Agreement.
List price – is the asking price of the property, this is negotiable;
Sales price – is what the owner will settle at to sell the property;
Appraised value – is a comparative market analysis to give the buyer an idea of what is sold and at what rate plus what is available in the market for a comparable property.
The registration fees of the Title Deed is paid by the buyer. Standard fees are 4%.
It is recommended to get the property inspected; however in the case of freehold property, if the property is newly built it falls under the guarantee of the contractor for structural defects. Maintenance is guaranteed for up to 1 year of the development. It is then up to the owner to ensure that he/she has a preventative maintenance contract in place for the property.
This is advisable when taking a mortgage on a property. There are a number of insurance companies in the market that can provide customized packages.
In addition to the lawyers’ fees and fees to be paid to the developer or broker, there may be land registration fees and maintenance fees. For new-built developments, expats can expect to pay approximately 4% on land registration fees. The maintenance fee is set by the Owner’s Association.
a) Seller’s Fees:
b) Buyer’s Fees:
Many institutions that offer mortgages also offer the option of ‘pre-approved financing’ which allows you to have your loan approved prior to choosing which property in Dubai you would like to purchase. This expedites the overall process and satisfies the sellers that require financing before agreeing to sign the Sales and Purchase Agreement. Validity of the pre-approval is usually 30 days with most banks.
Properties without Title Deeds may not obtain mortgage. Such properties can only be bought by cash buyers on Oqood (Pre-registration Title).
Yes, you can resell your property if you have a mortgage on it. The mortgage must be paid off to the bank to obtain clearance. Terms and conditions vary from bank to bank.
Yes, but your contract should state that you are entitled to one. Residency visas are subject to normal immigration regulations.
A valid passport.
The most important initial step is to make sure that the project has been registered with RERA and that the developer has obtained the registration documents and escrow account registration from the relevant authorities. When purchasing off-plan property directly from a developer expats will need to submit a completed Reservation Agreement with a copy of their passport. The Reservation Agreement typically summarizes the basic terms and conditions of the Sales and Purchase Agreement, the details of the payment plan and the buyer and seller’s personal details.
When purchasing off-plan property, ensure that the Sales and Purchase Agreement includes the completion date and compensation awarded if the property is not completed within the mentioned period. Furthermore, if the property is to be furnished, ensure the details of the furniture pack is attached to the Sales and Purchase Agreement. To complete the buying of property in Dubai, you must transfer the Title Deed. This is done by the developer’s office at the Dubai Land Department offices.
The Title Deed is issued in two originals, one is held with the bank until the mortgage has been settled, and the second original is held in the Land Department. A copy is retained by the buyer. When the mortgage is paid in full, a letter of release and No Objection Certificate (NOC) is given by the bank and the original is given to the buyer. An NOC must be given by the developer in order to process the Title Deed at DLD. The NOC states that the developer has no objection that the property be transferred, and if there are any liabilities against the property, the developer will advise.