Here are some key things to know about real estate law in the UAE:
♠ Property ownership:
Only UAE nationals, GCC nationals, and companies fully owned by them can own property in the freehold areas of the UAE. Freehold property gives the owner full ownership of the land and the building on it.
Foreigners can only own property in leasehold areas, which are typically granted for a period of 99 years. Leasehold property gives the owner the right to use the property for a specified period of time, but they do not own the land.
There are some exceptions to these rules. For example, foreigners can own property in designated zones, which are special economic zones that offer certain tax and regulatory benefits.
Foreigners can also own property in the UAE through a freezone company. A freezone company is a company that is registered in a designated zone.
♠ Registration:
All real estate transactions must be registered with the Real Estate Regulatory Agency (RERA). RERA is the government agency that regulates the real estate market in the UAE. Note that there is need for registration with the relevant government agency responsible for electricity and water in the applicable emirate such as Dubai Electricity and Water Authority in the Emirate of Dubai and Abu Dhabi Distribution Company (ADDC) in the Emirate of Abu Dhabi.
The registration process is relatively simple and can be completed in a few days.
♠ Rental laws:
The landlord and tenant are governed by the UAE Rental Law, which sets out the rights and responsibilities of both parties as well as the requirements of registration of tenancy arrangements (Ejari Contracts) and registration of occupants.
The Rental Law is designed to protect both landlords and tenants. It sets out the terms of the lease agreement, including the rent amount, the duration of the lease, and the landlord’s and tenant’s rights and responsibilities. There are strict laws against illegal subletting.
♠ Disputes:
There are effective mechanisms set by law to help deal with real estate disputes in each Emirate of the UAE. For example, any rental disputes in the Emirate of Dubai or Abu Dhabi are dealt with by their Rental Dispute Committees.
♠ Other considerations:
There are a number of other factors to consider when investing in real estate in the UAE, such as the location of the property, the type of property, and the current market conditions.
♠ Call to action:
Are you interested in learning more about real estate law in the UAE? Ubuntu Legal can answer your questions and help you make an informed decision.