5 Things To Know About Real Estate Laws In Dubai

It is complicated!!

The following is a statement of fact and not an insult. Dubai is a Muslim country; thus, any of their real estate laws will be influenced by their Islamic faith. What this tells you is that their laws are not going to be the same as those real estate laws found in western countries.

However, this does not mean it is impossible for expats to invest in Dubai real estate. It is a great real estate market where anyone with the money can invest and walk away with a profit.

All you have to do is watch yourself as Dubai operates under a very strict moral and ethical code. The people of Dubai can be very tolerant and open-minded, but there are limits to the type of behaviour they will accept.

Make sure to respect the people of Dubai’s culture, heritage, and laws, and you should be fine.

About Real Estate Laws In Dubai

  1. One of the first things you need to know about Dubai real estate laws is that they are made in conjunction with their Islamic faith. They are not separate from that faith, and the two go hand in hand, as do all laws of the country.
  2. The second thing you need to know is that expats can only own property in Dubai for up to 99 years. This was a change to the law that barred expats from owning any type of property in the city. This change came in 2006, and this new law is known as law number 7.
  3. The third aspect of Dubai real estate law you need to be aware of is their inheritance law. If anything should happen to you and you want to pass the property on to your children, this law will take into account the inheritance laws of your home nation.

Make sure you have a legal will protecting your property rights so your benefactors can inherit without hassle.

  1. Fourth, when you pay for your property, it is okay to use a post-dated check.

This is because it is hard for expats to get loans, etc., and the country understands this difficulty. However, if the check bounces, you are in serious trouble, and you will be jailed, and you can’t leave the country till your debt is paid.

  1. Finally, it is possible to get a residency visa when you buy Dubai property. This purchase, though, has to be for at least 1,000,000 AED. Once you get this visa, you are legally able to sponsor dependents to come and live with you in the city.

There are many other things you should know about the real estate laws in Dubai. It would pay to talk to someone who has experience in these matters before you take the steps to invest.

Real Estate Laws In Dubai

It turns out there are quite a few real estate laws, over 30 of them, in fact. So it will take some time to become aware of and understand them all. Most are common sense laws, but there will be some that may have you scratching your head.

For example, unmarried couples cannot live together nor be in a sexual relationship with each other. If you do not like these laws, you cannot be an activist and try to change them. If you try, you may find it is the fastest way to exit the city and country.

Not to mention see what it is like inside a Muslim jail and pay a huge fine. Everything is done differently in Dubai and other Arab countries, so you best be ready to abide by all the laws if you want to stay clear of any legal issues.

It is best to do some research into the real estate and other laws of Dubai before you make any decision to invest and live in the city. Not all areas of the city are open to expat ownership.

RERA

Those letters stand for the Real Estate Regulatory Agency, and it was introduced by H.H. Sheikh Mohammed Bin Rashid Al Maktoum, the Ruler of Dubai and Vice President and Prime Minister of the UAE.

What this agency does is provide a transparent and effective legal framework to everyone who is connected to Dubai real estate. It is the regulatory arm of the Dubai Land Department, and it also helps get more cooperation from insurance, banks, and law offices.

Here are its main duties:

  • Licencing real estate agencies in Dubai
  • Regulating trust accounts of real estate developers
  • Registering and regulating lease agreements
  • Supervising the associations of owners managing various buildings in the emirate
  • Publishing studies for the property sector
  • Supervising property advertisements in the mass media
  • Licencing real estate exhibitions to foster national participation in the emirate’s realty sector.
  • Informing people of regulatory acts pertaining to buying or renting real estate.

And it has developed three forms to be used in almost all real estate transactions:

  • FORM A: Agreement between the listing agent and seller
  • FORM B: Agreement between a property buyer and agent
  • RERA FORM F: Agreement between a property buyer and seller

Another basic duty for this branch of the DLD is to make it easier to deal with real estate laws through different smart applications. Those applications are Dubai REST, Dubai Brokers, Smart Investment Map, EJARI, and Smart Judge Service.

The latter informs everyone of their legal rights and if they have grounds to take legal action. You can contact the Smart Judge Service through your computer.

Some Final Words

The laws in Dubai can make real estate investment in the city very complicated. If you are not prepared for those laws, you could run into some trouble. When you decide to invest, give our office a call.

We have over 10 years of experience working with Dubai real estate laws, and we can help you navigate through their system safely. One phone call is all it takes to get our experience working for you, so you are on the right track for sound investment in Dubai.

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