Category: Real Estate

Overview

The transfer of property in Dubai is a systemized legal process overseen by the Dubai Land Department (DLD). It comprises a list of steps consisting of legal papers, financial clearance, and government registration. There are certain papers the buyer and the seller both have to give, pay for the government charges, and receive the approvals so as to facilitate the transaction with ease.

Below are the step-by-step and legal aspects associated with property transfer in Dubai:

1. Agreeing on Terms

The transfer of property begins with the signing of the sale terms by the buyer and seller, which are thereafter recorded in a Memorandum of Understanding (MOU).

Essential Terms to Incorporate in the MOU:

• Purchase price
• Payment terms (down payment and balance)
• Details of the property (size, parking, specifications)
• Withdrawal and penalty terms
• Dispute jurisdiction
• Timeline of transfer and penalty for delay

The MOU is a legally binding agreement, so both parties should have legal scrutiny before signing.

2. Document Preparation

To proceed with the transfer of the property, both the buyer and the seller need to provide a set of official documents. The correctness of these documents directly affects the transfer duration.

Documents Required from the Seller:

• Original title deed
• Passport copy, visa, and Emirates ID
• Utility clearance certificates (from DEWA, Empower, DU)
• Developer NOC (guaranteeing no pending service charges)
• Property Sales Agreement (Form F)
• Manager’s cheque (in case of mortgage)

Documents Required from the Buyer:

• Copy of passport, visa, and Emirates ID
• Proof of funds and deposit cheques
• POA (in case of transacting through a third party)
• DLD registration fees (4% of property value)
• Trustee’s Office administration fees

Documents Required from the Broker (if involved):

• Copy of passport, visa, and Emirates ID
• RERA registration card
• Broker’s commission charge (usually 2% of the property cost)

If the property is not owned by an individual but a company, corporate papers are required, including the trade license, company stamp, and letterhead.

3. Settle Outstanding Financial Obligations

Before transfer can occur, the seller must settle all outstanding payments:

Service Charges:

• Settle all outstanding service charges with the developer (e.g., Emaar, Damac).
• Obtain a clearance certificate from the developer.

Utility Bills:

• Clear all outstanding bills from DEWA, Empower, DU, and other services.
• Take utility disconnection letters and clearance certificates.

Mortgage (if applicable):

• If the property is under mortgage, the seller will have to settle the due loan amount.
• A manager’s cheque for the remaining amount of the mortgage has to be lodged with the bank.

Failure to clear service charges or bills can delay the transfer.

4. No Objection Certificate (NOC)

The seller must get an NOC from the developer.

Key Steps:

• The seller asks for an NOC from the developer.
• The developer verifies the status of the property (outstanding charges).
• If approved, the developer issues an NOC, confirming that the property is free for sale.
• In some cases, multiple NOCs can be issued by other developers.

Whereas some builders will only accept a personal visit for the NOC, others allow a POA-holder to visit in the seller’s place.

5. Registration at the Trustee Office

Once all is settled and approvals are obtained, the transaction occurs at a licensed Trustee Office.

Documents to be Brought to the Trustee Office:

• Original title deed
• Original NOC from the builder
• Signed MOU
• Service charges and utility clearance certificates
• Manager’s cheque for the outstanding balance
• Proof of payment for DLD registration fees
• Original IDs and passports of the buyer and seller

All documents will be vetted by The Trustee Office and payment verified. Satisfied, the office will then submit the transaction for the approval of the DLD.

6. Transfer and Issuance of Title Deed

Approved by the DLD, The Trustee Office will transfer a new title deed to the buyer’s name.

Fees and Costs:

• 4% of property value – DLD registration fee (payable by the buyer)
• 2% broker’s commission – Payable by the buyer (unless otherwise agreed)
• Trustee’s Office administrative fees – Typically AED 2,000–5,000
• Mortgage settlement fees (where applicable)

The entire transfer process, from registration to issuance of the new title deed, typically takes 1 business day once documents are in position.

7. Transferability of Eviction Notices

A recent Dubai Rental Dispute Center (RDC) ruling has sustained that eviction notices are transferable from seller to buyer.

What This Means:

• If a tenant has already been served an eviction notice, the new owner can enforce it.
• This differs from the past rulings where eviction notices had been attached to the landlord, not to the property.
• The new regulation stipulates that eviction notices are posted on the property and are still valid even after a change of ownership.

This regulation was issued by the RDC’s First Instance, so it could be overturned on appeal. Also, RDC decisions are not necessarily binding precedents.

8. Property Ownership by Companies

• The company must be registered with the DLD.
• The sale can be done only after the company issues:
  • Trade license
  • Company stamp
  • Board resolution approving the sale
  • POA from signatories authorized

Property transfers owned by the company are likely to have longer processing times and higher administrative fees.

Key Takeaways

• Negotiate all terms in writing in the MOU
• Clear pending service charges and utility bills before making an application for an NOC
• Use a trusted legal advisor to verify all documents and terms
• Ensure eviction notices and tenants’ rights are stated clearly in the contract
• Transfer via a registered Trustee Office

Helpful Tips

• Ensure the sale conditions reflect the market value at the time and any resale restrictions.
• Ensure the seller has a clear title, free from encumbrances or disputes.
• If the property is being rented, clarify the tenant’s rights and notice period.
• Make sure that the transaction broker is registered with RERA and authorized to act on behalf of the seller or buyer.

Conclusion

Dubai property transfer is quite straightforward when well managed. The delay causes are incomplete documents and unpaid charges. A legally compliant, smooth process is guaranteed when carried out with a seasoned legal professional.

The real estate industry in the UAE—and Dubai, in particular—is one of the most regulated business in the UAE. Real estate regulation for developers in the last 15 years has evolved significantly, with Dubai leading the charge in this evolution due to its historical reputation for having an active and vibrant real estate market.

Entry into the UAE real estate market as a developer is not straightforward. It is not as simple as registering a company and then starting to sell or raise money from investors. The developers are required to go through a set of stringent licensing, approval, and funding procedures before they can even begin to sell their developments. This regime of regulation came into existence following the financial crisis, whereby developers were relying entirely on upfront payments from buyers with no possession of land or enough funding to proceed with work—resulting in stalled developments and financial uncertainty.

Applicable Regulations and Key Laws

The legal framework governing property development in Dubai is based on a comprehensive set of laws and resolutions that are designed to ensure financial stability and protect investors. The most important regulations to developers are:

• Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Development – Governs the use of escrow accounts to protect investor funds and prevent misuse of off-plan sale proceeds.
• Executive Council Resolution No. (6) of 2010 – Requires developers to be the owners or in control of the land and to secure approvals before starting construction or selling off-plan units.
• Law No. (13) of 2008 Regulating the Interim Real Property Register – Prohibits registration of real estate developments and off-plan sales.
• Law No. (19) of 2017 – Dictates the process for addressing non-compliance by purchasers and the rights of developers in the event of violation of contracts.
• Executive Council Resolution No. (30) of 2013 – Sets the fees of property registration, ownership transfer, and other real estate transactions.
• Decree No. (31) of 2016 on the Mortgage of Granted Land – Allows developers to mortgage or dispose of granted land on a freehold basis without limitation.
• UAE Federal Tax Law (VAT and Corporate Tax) – Imposes corporate tax and VAT obligations on real estate developers, including registration with the Federal Tax Authority (FTA) and filing of tax returns.
• UAE Anti-Money Laundering (AML) Laws – Supplies the compliance framework for developers, including customer due diligence (CDD), reporting of suspicious transactions, and record-keeping obligations.

1. Licensing and Approval Requirements

Prior to any developer’s ability to market or sell a real estate development in Dubai, they must secure various levels of authorization from both commercial and real estate regulatory authorities.

A. Commercial License

First of all, the developers have to obtain a commercial license from the Department of Economic Development (DED), which comprises:

• Application under Activity Code: 6499004
• Providing a legally registered company name and business form
• Documentary proof of a valid tenancy agreement for office space
• Title deed for the land upon which the project will be built (or partial ownership confirmation)

B. RERA and DLD Approval

Following the issuance of a commercial license, the developer will acquire the approvals of the Real Estate Regulatory Authority (RERA) and Dubai Land Department (DLD). This entails:

• Registration of the project with the DLD
• Acquisition of an NOC (No Objection Certificate) from the master developer
• The filing of architecture and engineering plans approved by the relevant authorities
• Registration of the underlying purchase and sale agreement for the specific project with RERA
• Opening a RERA-approved escrow account before any advertising or marketing

Developers are not allowed to advertise off-plan sales or participate in real estate exhibitions without RERA and DLD approval.

2. Financial and Operational Requirements

Developers must demonstrate financial stability and operational capability before they can launch a project. This includes:

A. Escrow Account and Construction Guarantees

Under Law No. (8) of 2007 (the Escrow Law), developers are required to establish an escrow account with a local bank and deposit at least 20% of the cost of construction of the project before proceeding with sales. In cases where the developer lacks the ability to raise the amount, the deficiency should be financed through direct payment to the Dubai Land Department. The escrow account ensures that:

• Funds obtained from off-plan sales are only used for the construction of the project.
• 5% of the total value of the escrow account is withheld by the escrow agent until one year after the project is completed to cover potential liabilities (Escrow Law, Article 14).

If, for whatever reason, the project is not completed, the escrow agent will have a reasonable obligation to safeguard the rights of the depositors and to cause either the project to be completed or the depositors to be reimbursed (as per Escrow Law, Article 15).

3. Freehold Ownership by Foreign Developers

One of the largest benefits of property development in Dubai is the ability for developers, both foreign companies, to own property on a freehold basis within designated areas. Foreign developers and investors can purchase and hold property as freehold in designated areas for foreign ownership, some of which are key locations such as:

• Palm Jumeirah
• Downtown Dubai
• Dubai Marina
• Jumeirah Lakes Towers (JLT)
• Business Bay

This is a big attraction for foreign developers, as they can invest in long-term developments and secure finance against the land. Having the ability to own land as freehold places Dubai among the biggest real estate markets in the world to be accessible to foreign investors.

4. UAE Golden Visa for Real Estate Developers

A further big attraction for real estate developers is the possibility of being eligible for the UAE Golden Visa.

• Developers who invest in real estate developments—off-plan or completed—can qualify for a renewable 10-year visa under the UAE Golden Visa program.
• Individual and corporate investors can access the Golden Visa.
• Developers are also able to sponsor the Golden Visa for senior employees and relatives.

This represents a key strategic benefit to developers because the Golden Visa includes long-term residence, capacity to run a business, and better access to the UAE market.

5. Other Forms of Payment (Such as Cryptocurrency)

Accepting payments using other payment options like cryptocurrency is another trending feature of the real estate sector in Dubai.

• Some of the developers in Dubai are beginning to accept Bitcoin, Ethereum, and other types of cryptocurrencies for payments.
• Although the regulatory framework for crypto payments is still developing, the government of Dubai has published guidelines via the Dubai Virtual Asset Regulatory Authority (VARA) to oversee and enable crypto transactions.
• Crypto payments offer more flexibility for international investors and buyers, especially those looking to sidestep currency exchange volatility and global transfer charges.

Developers considering crypto payment options should seek the advice of legal specialists to guide them through VARA compliance and addressing potential issues around volatility, security of payments, and taxation.

6. UAE Anti-Money Laundering (AML) Compliance

The UAE real estate developers are categorized as Designated Non-Financial Businesses and Professions (DNFBPs) within the UAE AML framework. The developers therefore are subject to rigorous anti-money laundering compliance guidelines, including:

• Customer Due Diligence (CDD): Obtaining the identity of customers and ultimate beneficial owners (UBOs).
• Suspicious Transaction Reporting (STR): Reporting suspicious transactions to the UAE Financial Intelligence Unit (FIU).
• Record-Keeping: Maintaining records of transactions and identification of customers for five (5) years.

7. Tax Regulations (VAT and Corporate Tax)

A. VAT (Value-Added Tax)

• The VAT is levied at a standard rate of 5% on sales and leases of real estate.
• Initial sales of residential units within three years of completion are VAT zero-rated.

B. Corporate Tax

• From 1 June 2023, corporate tax is imposed at 9% on profits over AED 375,000.
• Developers are required to:
  • Register with the Federal Tax Authority (FTA)
  • File tax returns annually
  • Maintain proper books of accounts

8. Why Legal Guidance is Crucial

At HPL Yamalova & Plewka, we possess experience in advising real estate developers in licensing, registration, compliance, and strategic market entry. If you are keen on starting a real estate development venture in Dubai, contact us for expert legal consultation that aligns with your business needs.

Dubai’s real estate sector has introduced the Smart Rental Index 2025, featuring a star rating system for buildings to enhance transparency in rental valuations. Importantly, this initiative does not involve changes to existing rental laws or the legislative framework governing landlord-tenant relationships. The foundational laws, such as Law No. (26) of 2007 and its amendment, Law No. (33) of 2008, remain unchanged.

Unchanged Rental Legislation and Rent Caps

Dubai’s rental laws continue to be governed by:

• Law No. (26) of 2007: Regulates the relationship between landlords and tenants in the Emirate of Dubai.
• Law No. (33) of 2008: Amends certain articles of the previous law to further define and regulate landlord-tenant interactions.

Additionally, Decree No. (43) of 2013 establishes the rent increase framework, detailing permissible rent hikes based on how current rents compare to the average market rate:

Market Value Increase vs Contract Value Permitted Rent Increase: Example Scenario

Maximum Rent Increase Limited to 20%

Importantly, Dubai’s rental cap limits the maximum rent increase to 20% of the existing contract value — regardless of how much higher the landlord believes the market value has become. This is regulated under Decree No. 43 of 2013, specifically under Article 1 – Percentages of Increase.

For example:

• If your current rent is AED 100,000 and the property value has increased to AED 300,000 (a 300% increase), the landlord can only increase the rent by a maximum of 20% — or AED 20,000 — making the new rent AED 120,000 per year.

This ensures that even when the market value increases significantly, tenants are protected from excessive rent increases.

Introduction of the Star Rating System

The Smart Rental Index 2025, launched by the Dubai Land Department (DLD) in January 2025, introduces a star rating system for residential buildings, ranging from one to five stars. This system assesses properties based on over 60 criteria, including:

• Structural quality
• Maintenance standards
• Available amenities
• Facility management
• Energy efficiency

The objective is to align rental values more closely with the actual quality and condition of individual buildings, moving beyond the previous area-based assessments.

According to the authorities, the star rating applies to the building as a whole — not individual units. This means that a poorly maintained building in a high-demand area will not automatically command high rents. Conversely, a highly rated building in a less prestigious area may achieve higher rental values.

Determining and Updating Star Ratings

The star rating of a building is determined through a comprehensive evaluation by the DLD, considering both technical and service-related aspects. The system leverages artificial intelligence to ensure consistent and accurate assessments across all residential areas, including free zones and special development zones.

How the Star Rating System Works:

• Ratings are conducted based on specific criteria established by the DLD.
• A building owner with a low rating can bring on upgrades to his/her asset.
• Once improvements are verified and approved by the DLD, the star rating can be immediately adjusted.
• The system is updated frequently — not just once a year — allowing rental values to reflect building improvements in real time.

How the Star Rating System Differs from the RERA Index

1. Previous Model:

• The RERA Rental Index was based on broad geographical zones or districts.
• Rental caps were determined according to market averages within those zones, regardless of the specific condition or quality of the building.

2. New Model:

• The star rating system focuses on individual buildings rather than zones.
• Rental rates are determined by the building’s specific quality and amenities, not just the broader area.
• A high-end building in a less prestigious area may now command higher rents based on its star rating, while an older or poorly maintained building in a prime location may face rental limits due to its lower rating.

Accessing the Rental Index via the Dubai REST App

Tenants and landlords can utilize the Dubai REST App to access the updated rental index and determine permissible rent increases.

How to Use the Dubai REST App:

1. Download and Open the App: Access the Dubai REST App on your smartphone or tablet.
2. Navigate to Rental Index: Select the ‘Rental Index’ option within the app.
3. Enter Property Details: Input the necessary information, such as the property type, contract end date, and specific location details.
4. View Rental Index Result: The app will display the current rental value for the property, considering its star rating and other relevant factors.
5. Download Report: Users have the option to download the rental index result as a PDF for their records.

Implications for Tenants and Landlords

1. For Tenants:

• The star rating system provides greater clarity on what tenants are paying for.
• Rental costs will now reflect the quality and amenities of the building, not just the area.
• If a tenant lives in an older or lower-rated building, they are less likely to experience substantial rent increases compared to higher-rated properties.

2. For Landlords:

• Property owners are incentivized to maintain and upgrade their buildings to achieve higher star ratings.
• A higher star rating allows landlords to command higher rents and improve tenant retention.

Conclusion

The implementation of the star rating system within the existing legal framework signifies Dubai’s commitment to a more transparent and equitable rental market. By focusing on individual building assessments, the DLD ensures that rental values accurately reflect property quality, benefiting both tenants and landlords without necessitating changes to established rental laws.

This article is going to show how tenants in Dubai can claim a refund of their rental deposit, especially in disputed cases with the landlord. We are going to break it down into simple questions and answers.

Q1: What to do if your landlord refuses to refund your rental deposit?
An RDC, therefore, needs such a request for refund of the deposit amount in case the landlord refused to return such deposit at all, partially, or in due form and in due time.

Q2: Why is this an important issue for tenants?
This is an important issue because the deposits are a big amount for most tenants. These funds create financial stress and disturb a tenant’s life when these funds are disputed, interfering with their ability to seek new housing. A specified process of claiming refunds exists to protect the rights of tenants and ensure fair treatment for them.

Q3: What are some common reasons why landlords refuse to refund rental deposits?
Landlords do not always refund deposits for various reasons. Common examples include:

• Claiming the tenant caused damage to the property.
• Alleging the tenant left the property in an unclean condition.
• Disputing unpaid rent or utility bills.
• Citing breach of lease terms.

These can also aid a tenant in building up a case for refund arguments.

Q4: On what basis, and under what circumstances, is a landlord permitted to dispute the refund of a deposit?
Landlords can also contest a refund if, to them, there is a legitimate reason for doing so. These may include:

• Recorded evidence regarding property damage that is in excess of normal wear and tear.
• Photographic or written evidence that the property was not left in the state agreed upon.
• Unpaid rent or utility bills on record.
• Proof of the violation of lease terms by the tenant.

These claims have to be supported with clear evidence to stand in dispute resolution.

Q5: When is the request of landlords to keep the deposit valid?
The request of the landlords to keep the deposit is valid only when landlords can provide solid evidence for their claims. This includes damage, uncleanliness of the premises, bills, and violation of the lease. Without clear evidence, the request to keep deposits is not justified and can be objected to by the tenant.

Q6: How often does it happen that the landlords are able to prove that the keeping deposit is valid?
While landlords may be sometimes able to prove their reason for retention, that is not always the case. Usually, disputes arise due to subjectivity or lack of adequate evidence. For such a case, it is incumbent upon the tenants to show that the evidence does not support the reason being forwarded by the landlord for retaining the deposit.

Q7: What are the steps to make a request with the RDC?
In cases between tenants and landlords, it is supposed that the tenants will request from the RDC a “Payment Writ.” Under the New Case tab in the RDC online portal this can be accessed.

Q8: Is it complicated?
No, the process is normally easily accessible, simple, and efficient. The tenants are allowed to file their cases without any legal representation. The RDC online portal is user-friendly and negates the need for physical visits or in-person court hearings.

Q9: Can tenants use the RDC website in English?
Yes, the RDC website can be navigated in English, but all petitions and submissions have to be in Arabic. Furthermore, any supporting documents that are not originally in Arabic should be legally translated.

Q10: What is the filing fee for a case involving a Payment Writ?
The payment for filing a case in the Payment Writ is 3.5% of the claimed amount, with a minimum payment of AED 500 and a maximum of AED 15,000.

Q11: How long will it take to get a decision on a Payment Writ case?
A decision in the case of Payment Writ usually takes one day if all required documents are provided.

Q12: What is the sequence of procedures to be followed to have a smooth process in filing a Payment Writ?

• Login to the RDC online portal.
• Click the New Case tab, then select “Payment Writ.”
• Ensure all pleadings and supporting documents are in Arabic or legally translated.
• Submit your case online and pay the required fee.
• Wait for the decision, which is usually within one day.

Conclusion
Filing a request for the refunding of your rental deposit with the RDC is relatively easy and smooth. Your smooth processing depends on just following these steps and having all your documents ready. Good luck!

This information is important for a landlord and a tenant; let’s dive into the Q&A format.

Q1: What’s new in the rule about the Rental Valuation Certificates in Dubai?
Rental valuation certificates can only be issued from April 1st, 2024, in case there is a legal order or judgment that calls for such valuation of the property.

Q2: How was it previously?
The process was earlier administrative and easy, requiring very few documents like photos of the property and its details to issue a rental valuation certificate.

Q3: Why was this change necessary?
Ease in the availability of rent valuation certificates gave a discrepancy between the latter and the RERA index. Being critical for the determination of average rent and rental per cent increases, discrepancies do cause confusion and inconsistency.

Q4: Of course, can you give an example of such discrepancies?
The examples include a rental valuation certificate that lists the rent for a property way higher or lower than what the RERA index stipulates. It would imply unfair increases or decreases in rent and hence disputes between landlords and tenants.

Q5: What is the new requirement for issuing a rental valuation certificate?
This means you will have to apply for a judgment copy or an order regarding the assessment of rent for the property to issue a Rental Valuation Certificate, effective from today’s date, and this has been confirmed from the official website of Dubai Land Department.

Q6: Why is it so?
It coincides with the very recent update, which happened in March 2024, regarding the RERA index. The objective here is to have valuations that are consistent and credible.

Q7: How does this affect the average rent calculation?
The only tool to determine the average rent before any court proceedings is the RERA index. This is in line with Decree 43 of 2013, particularly Article 3, which states: “With regards to the percentage increase, the average similar rent shall be determined in accordance with the ‘Rental Index in the Emirate of Dubai’ approved by the Real Estate Regulatory Agency.”

Q8: When can one get a rental valuation certificate now?
You can get a rental valuation certificate only after a court dispute on the valuation given by the RERA index and its subsequent increase.

Q9: What is the procedure to get a rental valuation certificate now?

• You have to file a substantive court case objecting to the valuation given by the RERA index.
• An expert is assigned who will inspect the property and determine the average similar rent.
• You can then get a rental valuation certificate based on such judgment in case the court gives judgment in favor of property re-evaluation.

Conclusion

This update is meant to bring uniformity and reliability to Dubai’s rental market. Both landlords and tenants should be informed of these new requirements as a way of ensuring that fair rental valuations are performed in observance of the rule of law.

At LY Lawyers, we are conscious of how thrilling yet intellectually complicated a Dubai real estate transaction may be. Whether you are purchasing, selling, or investing, you will have to consider several legalities. Below, we highlight some common legal mistakes, key differences in Dubai’s property law, and some important considerations for any party involved in a real estate transaction.

1. Common Legal Mistakes in Real Estate Transactions
For Buyers:
Most buyers enter into real estate transactions without exercising due diligence on the transaction. This is in the form of checking on the reputation of the developer, applying for liens or disputes on the property, and verifying project approvals. The other common problem occurs when one signs incomplete documents or issues deposit cheques prematurely.
Thirdly, there is also an undue reliance by buyers on representations made by real estate agents or developers. For instance, handover and completion dates are taken on the surface without prompting critical questions such as whether the property is mortgaged or if there are multiple owners.
Buyers often attempt to handle legal matters themselves, from document preparation through property inspection, as if they knew better than the professionals. These frequent “do-it-yourself” lawyering often leaves open many of the legal details and possible legal perils. The simple rule is to seek appropriate professional advice in all legal matters and make sure one knows what financial commitment is being made.

For Sellers:
The common mistake of the seller is to rely entirely upon agents without working directly with the buyer to understand what exactly he needs. Delays in delivering within the agreed timeline or completing some documents could lead to disputes, particularly over deposits, which, at times, are retained by brokers. Secondly, many sellers do not understand the related legal obligations, such as the penalties applied to early mortgage settlements or the transferring requirements.

2. Key Differences in Dubai’s Property Law in Regards to Foreign Ownership
In fact, Dubai is generally one of the most foreign-investor-friendly cities in the UAE, with freehold areas around, specially designed to be sold to foreigners. Nevertheless, not all Dubai areas are classified as freehold. The older districts in Dubai, such as Jumeirah and pieces of “Old Dubai,” may not be available for foreign ownership. In turn, other emirates offer fewer freehold areas, thus less number of possibilities foreign investment could have.
Another privilege entitled to the foreign property investors under the Golden Visa program in Dubai is being accorded a long-term visa when buying property valued at more than AED 2 million. Visa options exist for properties worth from AED 700,000 to AED 2 million, but for a shorter term. Other specific laws an investor should be aware of are those providing for property ownership in special jurisdictions like the DIFC and ADGM.

3. Legal Considerations for Off-Plan Purchases
Off-plan is popular in Dubai, but it comes with its separate legalities. The buyer should ensure the developer is fully registered with the RERA and that the project is registered. Payments to be made into a dedicated escrow account for the project protect your investment.
The payment scheme, the time schedule of the construction and all other terms and conditions in the sales agreement must be clearly known. The buyers should maintain all records, receipts and invoices, as well as correspondence with the developer. Some special care of property specifications, such as hotel apartments or exclusive management agreements, is especial object of attention for off-plan buyers.

4. Protections for Developers – Recourse for Buyers
Developers in Dubai have to meet very strict requirements in terms of licensure by proving experience, financial stability, and ownership or control of the project land. Developers must also maintain escrow accounts in order to ensure that funds allocated for any given project are used for construction purposes only.
On the other side, buyers enjoy considerable legal protection. From the regulatory perspective, Dubai’s property laws are channelled through RERA and the Dubai Land Department, DLD, which provide several remedies for buyers in case the developer either delays completion or, worse, fails to deliver. Buyers can refer to established legal precedents and even block properties during disputes.
In case a developer defaults or breaches the contract, buyers also have the right to complain to RERA and take legal action against developers. In this way, buyers’ investments are protected by knowing options may be availed of.

5. New Legal Regulations in 2024
The year 2024 brought some new regulations to Dubai aimed at bringing further transparency and compliance into the real estate sector. Among these are:
• Tighter AML laws, which shine more scrutiny on brokers and agents.
• Stricter regulations on cold calling and advertising real estate to ensure better quality marketing.
• Greater utilization of blockchain technology to ease transactions and reduce the possibility of fraud.
These changes in legislation head toward a more secure and transparent real estate market for buyers, sellers, and investors.

6. Legal Action if Something Goes Wrong
Real estate dealings may not always go the way one would wish. If there is a dispute, much will depend on the exact conditions of the contract and the nature of the parties. Often, such disputes can be resolved with mutual agreement, but when that avenue does not work, buyers and sellers have to resort to taking legal action. The Dubai courts have been very efficient in dealing with cases related to real estate, which in turn are well-supported by established legal precedents.
The DLD can also be approached for mediation by the buyers and sellers, although the success rate is not that sure and depends on the seriousness of the agreement between both parties.

7. Protection Against Fraudulent Transactions
It is one of the most regulated real estate markets, where frauds are minimal, especially for buyers dealing with registered developers and where the transaction of the sale is conducted through escrow accounts. There may also be other payment plans, like crypto wallets through unregulated intermediaries; those are pretty much fraught with increased risk of fraud. The purchase of a property should be made through secure and transparent channels in order to avoid being targeted by scams.

8. Influence of Digitalization and Blockchain on Real Estate Law
In the digitalization of the Dubai real estate market, from its basic concept to the latest, blockchain technology is one of the new features that revolutionize the way in which transactions are conducted. Using blockchain provides increased visibility and hence much faster transaction times with the permanent non-editable records of property transactions involved. A few Dubai developers have also started to accept cryptocurrency for buying property, although the use of this medium of exchange remains evolving and its future regulation yet to be decided on.

Conclusion: How to Make a Safe and Legally Sound Transaction
Real estate transaction is one of the major financial commitments a person can make. Either in buying or selling, it is best to be well-informed, cautioned, and advised by legal experts to avoid common pitfalls and protect the investment.

LY Lawyers provides full legal support on all issues related to real estate transactions in Dubai, starting from due diligence and ending with dispute resolution. If you have any questions or need legal advice, please don’t hesitate to contact us. Be assured that our professional team will confidently lead you through even the most complicated issues that may arise in Dubai’s real estate market.