Dubai has grown exponentially in its real estate, with many investors getting attracted to the luxurious properties and prime locations around the world. However, legal formalities in buying and selling real estate in Dubai could be complexing and overwhelming. To help you get a feel for the process, here is a step-by-step guide to navigating the legal formalities of Dubai real estate.
Legal Framework:
The first thing to do is to understand the legal framework with which transactions in real estate are effected, especially in the city of Dubai. The Dubai Land Department controls the sale, purchase, and leasing of properties in the emirate. Ensure that you get well-versed with laws and regulations that lay down guidelines on how real-estate transactions are conducted in Dubai.
Due Diligence:
In this regard, the due diligence process becomes invaluable when entering a sale or purchase transaction of property in Dubai. This includes thorough research on title, possible existing or of record liabilities or encumbrances on the property, and proof of permissions and approvals from competent authorities. How one does this will be highly dependent on professional advice sought from a reputable real estate agent or a legal advisor.
Secure financing:
It is at this stage that one should secure the funding required in the purchase. Dubai offers a wide range of financing facilities available to the investors. They include local and international bank mortgages. Compare the rates with various lenders in order to secure the best option suitable to your needs.
Drafting and negotiation of the contract:
Assuming a property has been identified and financing obtained, this would follow with the drafting and negotiation of the sales contract. Clearly state all the terms and conditions regarding the sale, including but not limited to the purchase price and payment schedule; all other details need to be noted. It is, therefore, advisable to have an attorney review the contract to ensure it complies with Dubai’s real estate laws and regulations.
Completion:
The step and process of completing the transaction involved in the legal formalities in Dubai real estate. This is the step where there shall be an arrangement for the transfer of ownership, execution payment of fees or other levies which may be charged, and registration of the property with the DLD. All of this makes for a smooth, efficient closing process, provided the real estate agent or legal advisor is good.
Of course, taking the above steps and seeking professional advice as and when needed will enable any one person to take in their stride the legal hurdles that characterize Dubai real estate with panache and confidence. Happy investing!
