Can foreign nationals register title to property in Dubai?
Yes. Provided the property is located in a designated area, foreign nationals may register freehold title to their property in Dubai at the Dubai Land Department.

What restrictions may be registered against freehold in Dubai?
The most common restriction noted on freehold title is the Master Community Declaration, which document governs the development and operation of property within master communities, and will include stipulations regarding use and maintenance of property, as well as payment of service and other related charges.

Is it necessary to register title to your property ? Are there any penalties for non-registration of title?
The property registration law states that no disposition of a real property right can be affected unless it is previously registered with the Dubai Land Department. Although there are no specific monetary penalties regarding non-registration, the Dubai Land Department has indicated these may be forthcoming in the future.

Do you need to sign any agreement with a real estate or a broker before you engage their services?
Yes. The Brokerage Bylaw states that any agreement to employ a broker must be made in writing. RERA has issued forms, which it encourages all sellers and purchases to sign prior to any dealings with real estate brokers.
As a developer, do you need to be licensed by the Dubai Economic Department or by the Dubai Real Estate Regulatory Agency?
Yes. For developments outside for the designed freehold areas, developers must be 100% UAE or GCC-owned entities and licensed by the Department of Economic Development (the “DED”). In the past year, RERA has been issuing developer certificates for offshore companies purchasing and developing plots within the designed freehold areas. This is seen as an interim measure until RERA acquires all real estate licensing capabilities from the DED.  To date, the DED has been honoring the RERA-issued certificates upon inspection of developments within the designated freehold areas.

What are the precautionary measures whilst purchasing a property off-plan?
The main issues are ensuring that the developer and the project are both registered with RERA – and that a respective escrow account is opened for such project. All payments must be made into this escrow account – and developers who refuse to incorporate such an account for an off-plan project– or attempts to force a purchaser to make payments away from the escrow account – faces sanctions under the escrow account law.

What is a premium?
Premium is the amount that you pay above the original price charged by the developer. This can be a percentage of the original price, or a fixed amount. The premium plus the original price is the net selling price to the owner, and does not include transfer fees or commission.

What is a transfer or commission fee?
This fee is paid to the developer in transferring from seller to buyer. It varies between 1% and 7% of the selling price or original price and so can be substantial amount, usually paid by the buyer. Commission is normally 2% of the selling price in which the buyer normally pays, although on some occasions, the seller may pay 1% of the commission.

What is initial deposit?
This applies when buying direct from a developer and is paid to the developer in order to secure the property in your name. It is usually 10% or 15% of the selling price.

What is holding deposit?
This secures the property for a period up to one month usually, allowing the buyer time to organize funds through either financing or transferring of cash funds. This deposit is non-refundable and can range from AED 20,000 – 1,000,000 depending on the property price.

What is a Memorandum of Understanding (MOU)?
This is a contract made between the buyer and seller to secure the sale. A holding deposit is paid to the agent or seller to make the contract binding.

Can one lawfully sell freehold properties to foreigners in Dubai?
There is no provision in the law that forbids immovable property (except in an auction) from being sold to foreigners in the UAE.

Are there any restrictions imposed on freehold apartments?
Yes, there are some restrictions being imposed in most sale and purchase agreements issued by developments in Dubai; these conditions are to make sure that owners of properties pay their service charge on time, especially if they intend to sell their property.

How often will the service charges increase?
It is expected that the service charges levied will be reviewed yearly and if necessary, increased annually. Unless all the owners of the building/dwellings have to pay for an emergency expense, it is not expected that there will be dramatic fluctuations or increases in the service charges during the year.

What type of residency visa is received upon the purchase of freehold in Dubai?
Presently the government provides only short-term visas which may be renewed. Purchase of freehold property in Dubai does not guarantee residency, so it is wise to enquire thoroughly before a purchase.

Which properties are eligible for registration with the land department?
Both off plan and completed properties. The project has to be registered with the Dubai Land Department before a property transfer can be done.

Can any owner from any project register with the land department?
The Dubai Land Department has started to register titles in a number of projects. Check with your developer whether or not the project has been registered with the land department.

If I don’t register my property now, can I do it at a later stage or is there a deadline?
Yes

Do I need to turn up in person for the registration process?
Yes, or else you can authorize someone to come to register your property with a notarized Power of Attorney.

Can mortgaged properties be registered?
Yes, it is possible. The Dubai Land Department will require the presence of the customer and the bank representative.