Why is it important for buyers to know the real estate laws of Dubai?
Due to the growth and infrastructure of the city, investors from all over the world are showing great interest in buying real estate in Dubai. Thus, the government of the Emirate has announced property laws in Dubai to make real estate transactions safer. Investors should beware of these laws in order to complete the legitimate purchase process. Dubai is a well–known emirate of the UAE, whose main source of income is tourism and real estate.
For this reason, Dubai has the fastest growing real estate market in the world, where you can make a successful purchase of real estate by being well versed in Dubai's real estate laws. The UAE Real Estate Law regulates the sale, purchase and ownership of real estate in Dubai. If you want to buy a property in Dubai, here are a few points that you should always keep in mind.
Always remember that when buying a property in Dubai, the buyer must pay from 10% to 20% of the total value of the property.
If you are making a real estate transaction in a new building, then you need to make payment in installments.
According to the laws on real estate in Dubai, you can transfer the amount to the seller or a third party in the contract of sale of real estate in Dubai.
If you pay for real estate through the seller, you need to pay the seller 2% of the value of the property as a commission.
In addition to the basic provisions listed above, below we have written down three basic Dubai real estate laws that every investor, seller and buyer should beware of before entering the Dubai real estate market.
Real Estate Law number seven
Real Estate Law No. 7 is one of the main real estate laws in Dubai. The Government of Dubai passed this law in 2006, which aims to reduce restrictions for expats to own real estate in Dubai. According to UAE real estate laws, expats were not allowed to own property or land in Dubai. After the adoption of this law, non-residents and foreigners have the right to obtain ownership of property for rent or lease. UAE property laws also provide for a government-approved lease or lease period for real estate, that is, about 99 years.
Real estate rental laws in Dubai. Apart from buying and selling, Dubai also has a higher rental yield. Thus, the government has announced a law on renting real estate in the UAE for the convenience of both landlords and tenants.
Before renting out a property, it is important to sign an annual lease agreement in Dubai.
The landlord could not increase the rent during the term of the contract and could increase the amount of rent only after the expiration of the contract or when it was time to renew it.
In addition, according to the Dubai Real Estate Rental Law, landlords are not allowed to raise rents by more than 15% at a time.
In case of disagreement, the owner and the tenant are obliged to file a claim with the municipal rent control committee. According to the decision of the commission, both the owner and the tenant must comply with this decision.
