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Key Legal Considerations for Foreign Property Buyers in the UAE
  • cldJan 03, 2025

 

Who never wants to invest in foreign property in luxury places? Planning to purchase a property comes with many legal procedures that a foreign property buyer must have knowledge about. If you are an expatriate or non-resident looking to invest in UAE real estate, then it is the right time to invest because it is currently on boom. Being a foreign investor, if you are new to investing in real estate and have chosen to buy property in UAE, you can start your journey by understanding some legal considerations through this guide that are key to becoming a great estate investor. 

 

Why choose the UAE to Invest in properties?

UAE has become an open free market economy at the global level and forges economic connections with the world, which is one of the major advantages foreign investors seek. People also consider living in UAE for:

  • Prosperity
  • Developed Infrastructure
  • Favorable Taxation
  • Luxury Lifestyle
  • Global Exposure

 

Required Legal Documentation. 

Suppose you are legally eligible to buy a property in the UAE, then you must need: 

  • Original Passport and Emirates ID
  • Title Deed
  • Property Registration Documents
  • Signed Form F
  • Bank Statement for proof of funds.
  • Payable cheque.
  • NOC from the developer
  • Other additional documents may required as needed.

 

Types of Property Ownership 

Normally, real estate ownership is for foreign investors in the UAE. Still, in 2002, the UAE allowed non-citizens to purchase, sell, and lease some units of property commonly referred to as Freehold and Leasehold. There are several ways to hold ownership, and these are:

  • Freehold Ownership: Non-residents have full ownership rights to own, sell, and transfer to heirs. 
  • Common-hold Ownership: Non-residents can own an individual property unit while the entity owns the land.
  • Usufruct: Non-residents can have ownership that gives rights up to 99 years for a leasehold property. 

 

Must consider before purchasing property in UAE.

Investing is not only about putting money at risk without knowledge of legal terms and processes before making a decision. There are a few more legal processes and rules one must be aware of before making the final purchase.

  • Verification for ownership: Non-residents must ensure whether the property is in a freehold or leasehold zone because non-UAE nationals are allowed to own property legally in freehold zones. 
  • Registration at Real Estate Register: Developers must register the sale of the property within 60 days of purchase to the Interim Real Estate Register at DLD; any violation may cause potential legal disputes.
  • Verify the developer's credentials with RERA: This includes due diligence and the property registration process for foreign buyers. Title Deed and registration with Dubai Land Department (DLD). 
    • Make sure the developer has all the required land ownership and approvals.
    • The developer possesses the permits required for the development.
  • Fess and Associated Charges: The UAE doesn't have property taxes, but there are other fees and costs associated with developments and facilities. 
  • Review sales or rental contracts: Leasehold or rental property contracts must be registered through Ejari. Review the terms and rules under which the agreements have been settled for both parties. Hiring a legal real estate consultant is a needed help.