The process of purchasing a property in Dubai

Since 2002, anyone, including a resident abroad, has been able to purchase freehold properties on the open market. Resident status is not a requirement; however, there are a few areas that impose restrictions on buyers who are not residents of the emirate.

The contract for purchasing an apartment in Dubai, known as the SPA (Sales Purchase Agreement), is standardized and pre-formulated by RERA, the Real Estate Regulatory Agency in Dubai. It cannot be altered, ensuring that the entire apartment purchase process is closely monitored, and contractors cannot include additional comments beyond the official state contract. On average, a real estate purchase transaction in Dubai takes about 30 days from the moment of signing, following a straightforward and organized process.

Here are the steps in buying an apartment in Dubai:

Executing a “Memorandum of Terms” document (MOU) and making a payment of 5%-10% of the property’s total cost. If the transaction involves an off-plan apartment that is yet to be completed, the developer will establish a trust account to receive and secure the funds.

Executing a Sales Purchase Agreement (SPA) contract. The contract is standardized for all apartment buyers in Dubai and is non-negotiable. If you choose to engage the services of a local lawyer, the cost will be approximately 8,000 dirhams.

3. A meeting of both parties at a trusted office of the Dubai Lands Department to complete the transaction, as of 2018 there is a possibility to carry out a transaction without arriving in the country through a trusted representative of the seller after the documents and passport are approved.

Payment Completion: At this stage, the buyer will provide checks to the seller. Payment can be made in cash, checks, or through a bank transfer. Additionally, it is feasible to secure a loan/mortgage from local banks, covering up to 50% of the property’s value, subject to the bank’s assessment of various borrower parameters.

5. After completing the purchase process, the buyer will receive a government contract and an Oqood deed issued through the Dubai Land Department (DLD) – which allows the apartment owner to rent or sell the property.

Additional payments:

A. A check in the amount of 4% of the transaction price payable to the Dubai Land Department (DLD) and 2% of the transaction

B. price in Abu Dhabi. A check for the trustee’s office in the amount of 2000 dirhams if the value of the property < or = 500,000 dirhams. , payment of 4,000 dirhams if the value of the property > 500,000 dirhams.

C. A 4000 dirham check for the Dubai Electricity and Water Authority (DEWA) in the name of the homebuyer.

D. There may be additional taxes according to the laws of the emirate where you will purchase the property.

Dubai Land Department – D.L.D

The Dubai Lands Department – DLD is a government agency that provides legislation, organization, and necessary services for all real estate transactions in Dubai. At this stage, the Department of Trust will send a request to the Dubai Lands Department to transfer the title to the name of the buyer. The Lands Department will issue a draft that the trustee will sign and deliver to the buyer. The buyer will be able to check that the property is indeed registered in his name at the following address: dubailand.gov.ae. When it comes to the purchase of a property that has not yet been completed, the buyer can directly check the details of the escrow account as well as the progress status of the property’s construction on the DLD website or through the ‘Mashroi’ application launched by DLD.