Legal Framework & Purchase Process
Navigate the Dubai property market with confidence. Understand regulations, legal requirements, and the step-by-step purchase process.
Key Legal Concepts
RERA & Regulations
- Real Estate Regulatory Agency (RERA) oversees all transactions
- RERA Law enforces fair practices and fraud prevention
- All agents and developers must be RERA licensed
- Dispute resolution handled by RERA
Taxes & Costs
- No property tax on rental income for residents
- Tenancy contracts registered with RERA
- Transfer fee: 4% of property value
- Agency commission: typically 2-2.5%
Ownership Rights
- Freehold: 100% ownership in designated areas
- Leasehold: 99-year usufruct ownership
- Foreign investors allowed in freehold zones
- Right to rent out property freely
Key Legal Risks
- Verify developer credibility before off-plan purchase
- Ensure title deed is clear and unencumbered
- Understand rental law and tenant protection
- Check for building defects during inspection
Step-by-Step Purchase Process
1
Property Research & Offer
- →Identify property on RERA portal or through agent
- →Conduct due diligence on property title and history
- →Submit written offer (Letter of Intent)
- →Negotiate terms with seller
2
Purchase Agreement
- →Sign Sales & Purchase Agreement
- →Pay initial deposit (usually 10%)
- →Arrange inspection and valuations
- →Secure financing if needed
3
Legal & Financial Setup
- →Get mortage approval (if applicable)
- →Complete property valuation
- →Verify VAT status and tax implications
- →Hire legal advisor or conveyancer
4
Property Transfer
- →Register at Land Department (DLD)
- →Pay remaining balance (90%)
- →Register in your name at RERA
- →Receive title deed (Tapu)
5
Post-Purchase
- →Register for DEWA utilities
- →Set up property insurance
- →Arrange property management (if renting)
- →Complete mortgage registration if applicable
Important Reminders
- Always work with a licensed real estate agent registered with RERA
- Have a qualified lawyer review all contracts before signing
- Conduct thorough property inspections (not just digital review)
- Verify property is registered in RERA and not subject to disputes
- Understand all associated costs: transfer fees, agency commission, registration, etc.
- Keep all original documents in a safe place for your records
Have specific legal questions?
Our team can connect you with qualified legal advisors and help navigate the entire purchase process.
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