“Dubai has gained international attention for its rapid development and growth. With a thriving expat community and booming economy, the real estate market has become a major attraction for investors and homeowners alike. But, for anyone considering buying a property in Dubai, it’s important to first understand the laws and regulations that govern the real estate market. Last year, Dubai’s government announced several new laws, impacting economy and business environment in a positive way.
The Dubai Land Department (DLD)
The Dubai Land Department (DLD) is the government agency responsible for regulating the real estate market in Dubai. The DLD is responsible for registering and recording all real estate transactions in Dubai. The Real Estate Regulatory Authority (RERA) is a division of the DLD who are responsible for setting the laws and regulations of the real estate section. Their duties include:
Collecting all details of tenants and landlords and resolving any tenancy disputes.
Regulating foreign investment in Dubai.
Monitoring the trustworthiness of real estate advertisements
Licensing real estate brokers and developers
Monitoring banks, insurance and law companies within the real estate industry.
Monitoring and managing market development.
Regulations for real estate developers
Under the regulations set by RERA, real estate developers must obtain a license from the authority before they can start any real estate development project. The law also requires developers to provide detailed information about their projects, including the location, size, and the type of units that are being developed. In addition, RERA states that developers must maintain a trust account for each one of their projects. All amounts paid by buyers are paid into the trust account to ensure that all funds are used towards the completion of the project.
Regulations for real estate brokers
Another important law related to real estate in Dubai is the Real Estate Brokers Law. This law regulates the activities of real estate brokers in Dubai. The law states that anyone wishing to act as a real estate broker in Dubai must first undergo Dubai Real Estate Institute certified training, and pass a RERA exam to obtain a real estate license. The law also sets out the rules and regulations that real estate brokers must follow when working with clients.
Dubai Strata Law
Another important real estate law in Dubai is the Strata Law, which applies to multi-unit developments such as apartments and townhouses. The Strata Law’s main principle is the division of a property into privately owned units and jointly owned common areas which are then managed by an owners association. This law sets out the rules for the management and maintenance of common areas and facilities in these types of properties.
Foreign ownership laws in Dubai
One of the main advantages of investing in real estate in Dubai is the ease of ownership for foreign investors. The UAE has a foreign ownership policy that allows non-UAE nationals to own property in designated areas of the country. This policy is designed to encourage foreign investment in the real estate market and has contributed to the city’s reputation as a desirable destination for property investment. However, it is important to note that there are certain restrictions on foreign ownership in Dubai. For example, foreign investors are not allowed to own property in certain parts of the city, and they must obtain approval from the DLD before purchasing property.
3 broker rule
In October 2022 the Dubai Land Department (DLD) limited sellers to list their properties with a maximum of three brokers. The move will significantly reduce duplicate listings (multiple agents advertising a single property), enabling more professional brokers and agencies provide their service efficiently, while securing better customer experience for clients looking for properties. This overall streamlining of the process of buying and selling properties will benefit both buyers and sellers.
Using a conveyancer
Whilst there are laws and regulations in place in Dubai to protect buyers of real estate in Dubai, the complex nature of property transactions means it is still very important to use a conveyancer to navigate the process. A conveyancer will oversee the legal transfer of a property from the seller to the buyer. This includes drafting and reviewing the terms of the contract and carrying out the various complex legal, financial and administrative duties required. Find out more about Conveyancing Services here.
Overall, the real estate laws in Dubai are designed to protect the rights of both buyers and sellers and to ensure a fair and transparent real estate market. If you are planning to invest in real estate in Dubai, it is important to familiarize yourself with these laws and regulations to ensure that your transaction goes smoothly.”
