What is a freehold property?
The freehold property ownership model in Dubai permits the purchase of a plot of land and the unit that sits on it. In this way, the buyer becomes the landowner, with the title deed in their name, and any heirs can be included in the inheritance. This type of property purchase allows the owner to lease, occupy or sell their property, with the freedom to choose how they would like to use it, as long as it is in line with local regulations. To encourage foreign investment, Dubai has made the most popular areas for expats like Dubai Marina, Emirates Hills, Al Barsha, and Palm Jumeirah available for freehold ownership.
What is Oqood?
Emirates Real Estate Solutions offers an online service called Oqood, which is an Arabic term for contracts. This service aids developers and buyers in the property registration process.
What is Offplan Property?
A property that is yet to start construction or is in the early stages of construction is known as an off-plan property.
What is DLD?
The Dubai Land Department (DLD) is the government body responsible for managing all real estate related legislation, organisation, and services in the Emirate of Dubai. DLD oversees all transactions related to Dubai’s property market, providing regulatory and administrative support for buyers and sellers alike.
What is DLD waiver?
A DLD Waiver is the waiver of the DLD fee that is levied on property purchase. The DLD Fee is 4% of the property value and is payable by the buyer. Ergo a DLD Waiver means the buyer does not pay this fee and it is instead paid by the developer.
What is the difference between freehold & leasehold?
With freehold, the buyer has full ownership of the property and their name will be on the title deed. On the other hand, leasehold grants the buyer the right to occupy the property for a period of time, usually between 10 and 99 years. The property cannot be bought outright in a leasehold agreement.
What is RERA Dubai?
RERA, which stands for Real Estate Regulatory Agency, is part of the Dubai Land Department (DLD). It is responsible for regulating the real estate industry in Dubai and managing the relationships between all parties involved in a real estate transaction. RERA also oversees the exchange of property ownership.
What is DEWA Dubai?
Dubai Electricity and Water Authority (DEWA) is responsible for providing electricity and water to the city of Dubai. DEWA is the acronym for this authority.
How do I apply for DEWA?
You can apply for DEWA services online through their website, or you can go to a DEWA office to submit your application.
What is Ejari Dubai?
The word “Ejari” is derived from Arabic and translates to “my rent”. This online registration system, used in Dubai, is designed to monitor and regulate all rental contracts for the Dubai rental market, making it one of the most secure and regulated markets in the world. The Ejari system documents all rental transactions to ensure they are legally binding.
How can I register to Ejari?
Tenants are responsible for registering their tenancy contract with Ejari. This process requires a signed tenancy contract, title deed, SPA, copies of the tenant and landlord’s passports, visas and Emirates IDs, as well as the landlord’s fingerprint.
Do I need Ejari for Dewa?
Yes, you will have to get the Ejari done before applying for DEWA.
What is a security deposit, how much is it and what does it cover?
The tenant pays a security deposit of either 5% or 10% of the annual rent to the landlord upfront. This fee is kept in reserve to provide the landlord with protection in the event that the tenant fails to meet any of their contractual obligations. It covers missed rent payments, damage done to the property, lost security keys, and repairs that are not due to normal wear and tear.
What are the deposits required to rent a property?
A security deposit of 5% is required for unfurnished properties and 10% for furnished properties. Furthermore, you must pay a DEWA deposit of AED 2000 for an apartment and AED 4000 for a villa. Additionally, an Ejari fee of AED 225 will be charged. If there is a chiller, a deposit will be required, as well as an agency fee.
What documents are required to qualify for a tenancy agreement for a property?
A valid passport and a valid Residence Visa copy must be supplied by the tenant to the Property Broker. The tenant must present the originals of these documents. In the case of a Corporate Tenant, a valid Trade License, a copy of the General Manager’s passport (if they are signing the Agreement) and a valid passport of the Occupant must be provided.
Is tenant required to register his tenancy contract with Ejari?
The tenancy contract must be registered with Ejari in order for it to be considered a valid agreement. As per the Law, no claims will be accepted without this.
Can a tenant terminate his contract before the tenancy period ends?
You can end your tenancy contract as a tenant, provided you give your landlord two months notice and pay two months rent as a cancellation fee from the date you leave the property. Additionally, you should make sure all utility bills are settled.
What is the process to purchase the property in UAE?
When purchasing a property, if it is from a reseller, a Memorandum of Understanding (MOU) must be signed by both parties. This document outlines the terms and conditions of the sale transaction.
If the property is being bought directly from a developer, a Sales Purchase Agreement (SPA) must be signed. This document contains all the details of the agreed terms and conditions of the sale.
Can power of attorney be used for the purpose of buying and selling real estate in Dubai?
Property buyers/owners can obtain a legally binding proxy through a properly authorized and legally validated power of attorney. This individual, who holds a POA, can have the right to dispose of the property on behalf of the client, as stated in the POA. The POA is valid for activities such as selling, mortgaging, and gifting, and is valid for a two-year period. If purchasing with a POA, the POA is valid for five years from the date of notarization at the notary public.
Do I have to pay tax on Dubai property if I am a resident abroad?
No, if you are a resident abroad, you do not have to pay any tax.
What is an escrow account?
An escrow account is a third-party funding source that allows merchants to access money transferred by buyers once an escrow agreement has been fulfilled. If the agreement is not fulfilled, the funds are returned to the buyer. In the real estate market of the United Arab Emirates, escrow accounts are used to protect buyers’ funds and regulate the funding that developers receive from buyers to construct projects. The Escrow Account Law in UAE requires developers to open separate escrow accounts for each project.
