Purchasing a Property in the UAE: Ownership and explained
Real estate laws in the UAE encompass a dual legal system consisting of federal laws and emirate-specific legislation. The UAE Civil Transactions Code (CTC) serves as the primary source of law for real estate transactions, covering aspects such as buying, selling, and ownership rights. Each emirate has the authority to enact its legislation to supplement federal laws, with Dubai and Abu Dhabi being prominent examples.
Property ownership in the UAE is generally limited to UAE and Gulf Cooperation Council (GCC) nationals, as well as companies fully owned by them. Non-UAE/GCC nationals can acquire property on a freehold, leasehold, or usufruct basis in designated areas.
The Dubai Land Department (DLD) plays a crucial role in regulating the real estate market in Dubai. It oversees the registration and recording of all real estate transactions. It is supported by the Real Estate Regulatory Authority (RERA), which sets laws and regulations for the sector. RERA licenses real estate agencies regulates trust accounts, and supervises lease agreements and owner associations.
Freehold title grants perpetual ownership rights, allowing owners to use, enjoy, and occupy the property. However, a leasehold title provides property rights for a specified term, with a maximum duration of 99 years.
And to deal in real estate transactions in Dubai, real estate developers must obtain a license from RERA and provide detailed project information. They must also maintain a trust account for each project to ensure proper use of funds. Real estate brokers must undergo certified training and pass a RERA exam to obtain a license. To further real estate laws, the following highlight some of the features in the field of real estate:
- 1. RERA: It plays a vital role in regulating the real estate industry. It licenses real estate agencies, regulates trust accounts, registers lease agreements, supervises owner associations, and ensures transparency in property advertisements.
- 2. Oqood: It is provided by Emirates Real Estate Solutions (ERES), which is an online service that simplifies the registration process for contracts between developers and buyers. It ensures compliance with Dubai Land Department regulations and protects buyers from unlawful actions.
- 3. The Sale Purchase Agreement (SPA): It is a crucial document that outlines the terms and conditions of the purchase. It includes details such as unit size, price, payment schedule, completion date, specifications, penalties, and maintenance fees.
The UAE real estate laws encompass a dual legal system, with federal laws and emirate-specific legislation. With the innovations and supportive government, Dubai attracts a lot of Russian and Asian investors. Before investing in a property, consult a real estate lawyer to understand the legalities.