Buying real estate property in Dubai, United Arab Emirates

As Dubai became one of the most futuristic cities in the world, and the United Arab Emirates one of the most desired countries to live in, a lot of people would like to have their Arabic dream come true and have access to all what this country has to offer, from lifestyle, futuristic buildings, high end services, international cuisines and amazing infrastructure.

Considering the fact that the population of Dubai has grown significantly in the past few years, a lot of property projects have been launched lately; therefore there is a large palette to choose from: properties close to the beach, properties in quiet areas, surrounded by greenery, villas, bungalows or futuristic skyscrapers.

The biggest benefit of investing in the real estate market of Dubai is that you do not need to pay any taxes for the same. This includes the residential properties as well as their commercial counterparts. This means that once you buy a property, you would not need to pay any extra taxes for the same.

Moreover, if your property value is above 1 million Dirhams you can apply for the three -year residency visa.

In the Emirate of Dubai, foreigners can own real estate properties only in areas designated for freehold ownership. The sole legal authority to register and document all real estate transactions is the Dubai Land Department.

As mentioned above, as an expat, living in the UAE, you can buy only properties in areas designated for freehold ownership. Therefore, you have to approach a real estate broker to search for a property that suits your budget, in an area you like. Once you found the property of your dream, you need to start the registration process.

Below, I will guide you through the most important steps the buyer and the seller need to follow and I will highlight the documents each buyer and seller has to provide and submit to the Dubai Land Department in order to sell and buy a real estate property.

Acquiring a real estate property from the developer or from an existing owner (individual or corporate)

 What are the steps the buyer/seller needs to follow?
a) In case the seller and the buyer would like to register the real estate property, via the service centre, they have to follow the next steps:

1. The seller and the buyer have to approached any Real Estate Registration Trustees offices in the Emirate of Dubai (on this link you can find all authorized Registration Trustees offices in Dubai ) and submit all required documents together with the manager security cheque under the seller’s name - for the selling/buying price.
2. The file will be verified and once it is approved, the Real Estate Registration Trustees offices process all transaction data.
3. The seller and the buyer will pay the necessary fee for the transaction (including the Dubai Land Department fee and Real Estate Registered Trustee fee).
4. After receiving the funds and after processing the data, the new Title Deed will be issued under the new buyer

b) In  case the buyer and the seller would like to register the real estate property, remotely, they have to follow the next steps:

1. The seller and the buyer have to send all transaction’s documents by e-mail to the Real Estate Registration Trustee office together with the proof of transfer/receiving of the selling/buying price.
2. The Real Estate Registration Trustee office will review the request and ensure that the documents are completed.
3. Once the documents are completed, the transaction approved and the transaction data entered into their system, a recorded video call will be made to both parties (seller and buyer) to verify the parties and to confirm the transaction.
4. After the video call is made, a payment link will be sent to both parties, to process the payment for the transaction (including the Dubai Land Department fee and Registered Trustee fee).
5. After receiving the funds and after processing the data, the new Title Deed will be issued under the new buyer’s name.

 Which documents the buyer/ seller has to submit

a) In case the transaction is made between individuals, the following documents have to be submitted:

1. Original Title Deed,
2. Sale Agreement (Memorandum of Understanding) signed by the buyer and seller - in case of re-sell and Sale and Purchase Agreement from developer, signed by the developer and the Buyer - in case of initial sell,
3. No Objection Certificate issued by the developer (in case of re-sell),
4.  Emirates ID Card, United Arab Emirates residency Visa, passport copy of the seller and buyer,
5. Power of Attorney in case any of the parties are appointing someone on their behalf,
6. Original manager cheque issued under the seller’s name, for the selling price,
7. Proof of payment of all Dubai Land Department fee and Real Estate Registration Trustee office’s fee

b) In case a company is involved in the transaction as seller or buyer, the following documents have to be submitted:

1. From the company: valid trade license, Memorandum and Article of Association together with all its amendments, fresh Incumbency Certificate, fresh Good Standing Certificate, attested Shareholder Resolution, Power of attorney issued by the company to appoint a person as its representative, No Objection Certificate issued by the Authority where the company is registered. Please note that all the above-mentioned documents have to be legally translated into Arabic,
2. Passport copy, United Arab Emirates Visa, Emirates ID for the authorized person on behalf of the Company,
3. Original Title Deed,
4. Sale Agreement (Memorandum of Understanding) signed by the buyer and seller - in case of re-sell and Sale and Purchase Agreement from developer, signed by the developer and the Buyer - in case of Initial sell,
5. Passport copy, United Arab Emirates residency Visa and Emirates ID of the other party,
6. No Objection Certificate issued by the developer (in case of re-sell),
7. Original manager cheque issued under the seller’s name, for the selling price of the property,
8. Proof of payment of all Dubai Land Department fee and Real Estate Registration Trustee office’s fee

Acquiring a mortgaged real estate property from an existing owner (individual or corporate).
In case the real estate property, the seller would like to sell, is mortgaged, he will be able to transfer it only after the settlement of mortgage letter from the bank is presented to the Real Estate Registration Trustee office.

What are the steps the buyer and seller need to follow?
Before approaching the Real Estate Registration Trustee offices, the seller has to take the necessary steps to obtain the Discharge/ Release of mortgage letter issued by the bank.

In order to obtain the Discharge/ Release of mortgage letter issued by the bank, the seller has to approach the bank and check with them the necessary steps and requested documents.

Usually, the first step any seller needs to take is to provide the bank with few forms signed by him. After the forms are signed and processed by the bank, the bank will issue the Liability letter, mentioning the outstanding mortgage fee.

Once the Liability letter is issued, the seller will have to submit it to the Real Estate Registration Trustee offices together with the other requested documents and the buyer will have to submit the manager cheque for the selling price under the seller’s name (or under the bank name for the amount mentioned in the Liability letter and for the difference amount, another manager cheque under the seller’s name), in order to obtain the Restrain Property Certificate and the original Title Deed kept by the bank.

Once the Restrain Property Certificate is issued by the Dubai Land Department, the seller will submit it to the bank together with the cheque to cover the outstanding mortgage amount, in order to obtain the Discharge/ Release of mortgage letter addressed to the Dubai Land Department and to the developer and the original Title Deed kept by the Bank.

a) After the Discharge/ Release of mortgage letter is issued and the original Title Deed is released, in case the buyer and seller would like to register the real estate property, via the service centre, the next steps have to be followed:

1. The seller and the buyer have to approach Real Estate Registration Trustee offices and submit the Discharge/ Release of mortgage letter and any other documents requested by Real Estate Registration Trustee offices.
2. The file will be verified by the employee of the Real Estate Registered Trustees offices and once approved; they will process all transaction data.
3. The seller and the buyer will pay the relevant fees necessary fee for the transaction (including the Dubai Land Department fee and Registered Trustee fee).
4. After receiving the funds and after processing the data, the new title deed will be issued under the new buyer’s name and the cheque issued under the seller’s name will be release to him.

b) In case the buyer and the seller would like to register the real estate property, remotely, they have to follow the next steps:

1. The seller and the buyer have to send all documents by e-mail to the Real Estate Registration Trustee Office.
2. The Real Estate Registration Trustee office will review the request and ensure that the documents are completed.
3. Once the documents are completed, the transaction approved and the transaction data entered into their system, a recorded video call will be made to both parties (seller and buyer) to verify the parties and to confirm the transaction.
4. After the video call is made, a payment link will be sent to both parties, to process the payment for the transaction (including the Dubai Land Department fee and Registered Trustee fee).
5. After receiving the funds and after processing the data, the new Title Deed will be issued under the new buyer’s name and the cheque issued under the seller’s name will be release to him.

Which documents the buyer/ seller has to submit?

a) In case the transaction is made between individuals, the following documents have to be submitted:

1. Discharge/ Release of mortgage letter issued by the bank and addressed to the Dubai Land Department,
2. Original Title Deed, released by the bank,
3. Sale Agreement (Memorandum of Understanding) signed by the buyer and seller,
4. No Objection Certificate issued by the developer (in case of re-sell),
5. Emirates ID Card, United Arab Emirates residency Visa and passport copy of the seller and buyer,
6. Power of Attorney - in case any of the parties are appointing someone on their behalf,
7.  Original manager cheque issued under the seller’s name and /or bank’s name,
8. Proof of payment of all Dubai Land Department fee and Real Estate Registration Trustee office’s fee.

b) In case a company is involved in the transaction, as seller or buyer, the following documents have to be submitted:

1. From the company: valid trade license, Memorandum and Article of Association together with all its amendments, fresh Incumbency Certificate, fresh Good Standing Certificate, attested Shareholder Resolution, Power of attorney issued by the company to appoint a person as its representative, NOC issued by the Authority where the company is registered. Please note that all these documents have to be translated into Arabic,
2. Passport copy, United Arab Emirates residency Visa and Emirates ID for the authorized person on behalf of the Company,
3. Discharge/ Release of mortgage letter issued by the bank and addressed to the Dubai Land Department,
4. Original title deed, released by the Bank,
5. Sale Agreement (Memorandum of Understanding) signed by the buyer and seller,
6. Passport copy, United Arab Emirates residency Visa and Emirates ID of the other party,
7. No Objection Certificate issued by the developer (in case of re-sell),
8. Original manager cheque issued under the seller’s name and/or Bank’s name,
9. Proof of payment of all Dubai Land Department fee and Real Estate Registration Trustee office’s fee.

In conclusion, we can say that it’s definitely worth it to buy a property in Dubai, and even though in the beginning it may seem like a difficult process, once you understand the steps and find the right people to help you throughout the journey, the satisfaction of owning a property in a city like Dubai will be incomparable.