Buying real estate in Dubai is a process that includes an appointment with a notary. As is customary in Germany, a notary is also required in Dubai. However, there are differences in terms of jurisdiction and the transaction process. In general, the purchase process moves more quickly than in Germany. We’ll explain the roles of notaries in Dubai and discuss how much time elapses from the notary appointment to the payment of the purchase price.
Why do you need a notary in Dubai?
In Dubai, notarization is required to legalize certain documents and transfer real estate. To have documents notarized, you need to schedule an appointment with a notary. The Dubai Land Department (DLD) handles real estate transfers.
Certification of Documents
Documents used for official purposes in the United Arab Emirates must be certified.
The process involves several steps:
- Have documents certified in the country of origin.
- Have documents certified by the UAE Ministry of Foreign Affairs.
- Have documents certified by the UAE embassy or consulate.
So, you must first visit a notary in Germany and have the documents issued there notarized. The documents are then legalized by the Ministry of Foreign Affairs. The process is not complete until the documents have also been legalized by the Consulate General of the United Arab Emirates.
The Dubai Land Department (DLD) is responsible for certifying real estate purchases. This agency serves as a notary in Dubai. In the presence of the buyer and seller, the DLD issues a new title deed. Notary fees for a home purchase amount to four percent of the property price.
How long does it take to buy a house?
The process of buying real estate in Dubai depends on individual circumstances. Therefore, the question—”How long does it take from the notary appointment to the payment of the purchase price?”—can only be answered in general terms. All conditions for payment specified in the purchase agreement must be fully met; it depends on how quickly a notary appointment can be scheduled, and the procedures of the banks involved also affect the timeframe. So how long does it typically take from the notary appointment to the payment of the purchase price? You can generally expect it to take between two and six weeks.
Where can you buy real estate in Dubai?
Since a law to that effect was enacted in 2002, foreigners have been allowed to purchase real estate in Dubai. This is only possible in certain areas, known as “Designated Areas.” Foreign investors have a variety of options here and can purchase modern apartments of various sizes or luxury properties.
Some popular designated areas in Dubai:
- Dubai Marina
- Jumeirah Village Circle
- Emirates Living
- Downtown Dubai
Anyone looking to relocate to Dubai or seeking a promising investment in one of the world’s most dynamic real estate markets is sure to find what they’re looking for here.
A distinction is made between freehold and leasehold areas. In freehold areas, foreigners purchase real estate with full ownership rights. They thus have the same rights as local real estate buyers. They are free to use the purchased residential property and land as they wish, rent it out to third parties, sell it, or bequeath it. Real estate in leasehold areas generally grants a right of use for 99 years. However, the land remains the property of its original owner.
Popular Freehold Areas:
- Arabian Ranches
- Palm Jumeirah
- Dubai Marina
- Business Bay
- Emirates Hills
- Jumeirah Lakes Towers (JLT)
It is possible to own residential and commercial real estate on a permanent basis. Individuals may purchase real estate without needing a residence permit in the United Arab Emirates. Foreign companies may invest in real estate only if they establish a local company or meet specific requirements.
Requirements for Buying a Home in Dubai
To purchase real estate in Dubai, certain requirements must be met.
Passport
Anyone wishing to purchase real estate in Dubai must provide valid identification in the form of a passport. An ID card alone is not sufficient for this purpose.
Residence Status
Residence status plays a crucial role when purchasing real estate. Owning real estate does not automatically lead to obtaining a residence permit, but it can pave the way to a long-term visa.
If a property with a minimum value of two million AED is purchased, an application for a residence permit can be filed. This provides investors with legal certainty and the opportunity to live and work in Dubai on a long-term basis.
Finance
When it comes to real estate financing, there are a few special considerations to keep in mind. It is common to be required to contribute at least one-quarter of the purchase price as equity. The remaining amount can be financed through a mortgage. Banks have different terms and conditions.
Sales Contract
The purchase agreement should set forth all relevant terms and conditions of the real estate sale. Both parties must sign the document.
No Objection Certificate (NOC)
The developer issues the NOC. This document confirms that there are no outstanding claims against the property and that no legal claims exist regarding it. The NOC safeguards the legal aspects of the real estate purchase and ensures that the developer has fulfilled all of its obligations. It is typically issued after payment of the purchase price and before the property is registered by the notary—in this specific case, by the Dubai Land Department. To avoid unnecessary delays in the home purchase, care must be taken to obtain the NOC in a timely manner.
Power of Attorney
Anyone who does not wish to handle the home purchase in Dubai on their own and wants to be represented locally will need a power of attorney. Powers of attorney allow third parties to act on one’s behalf. To have the power of attorney notarized, you’ll need to schedule an appointment with a notary.
How long does it take from the notary appointment to the payment of the purchase price—buying real estate in Dubai
The process of buying real estate in Dubai is well-structured and can be completed relatively quickly. Once the preliminary contract is signed, you should allow about four weeks for the transaction to be finalized.
The following steps must be followed when purchasing real estate in Dubai:
Searching for a Property and Negotiating the Price
When selecting a suitable property, the prospective buyer is assisted by a real estate agent. The agent must hold the appropriate license (RERA-licensed). In Dubai, real estate agents assist both sellers and buyers in negotiating the terms of the sale and the purchase price. Once price negotiations are complete, a small deposit is often agreed upon. Reservation agreements may also be signed.
Sign a preliminary contract and make a down payment
If the preliminary negotiations are successful, the buyer and seller sign a Memorandum of Understanding (MoU). This document is also known as “Contract F” in Dubai. The document sets forth all the key terms and conditions for the upcoming sale. The signing of the MoU is often accompanied by the payment of ten percent of the purchase price. In Dubai, payments are typically made via security checks. The down payment provides both parties with a certain degree of security.
The buyer thereby expresses serious interest in purchasing the property. Should the buyer nevertheless decide not to proceed with the purchase, the seller will receive compensation. The MoU is not to be considered a purchase agreement. It is merely a preliminary agreement. It can be revised at any time. A deadline is agreed upon for this purpose. A timeframe of approximately 30 days is customary.
Applying for a No Objection Certificate (NOC)
If an existing property that was originally transferred from the developer to the seller is sold, a No Objection Certificate (NOC) must be obtained. The No Objection Certificate is issued by the developer and serves as proof that there are no objections to the sale of the property.
Project developers charge a fee for issuing the certificate. The costs vary by project and range from 500 to 5,000 AED. The NOC application process is usually completed within a few days. Once the NOC has been issued, the final transfer date can be agreed upon.
Anyone who decides to purchase off-plan real estate in Dubai does not need a NOC. The property is purchased directly from the developer, and there are no intermediaries. In this case, the Dubai Land Department handles the registration using the Oqood system.
Property Registration
A real estate purchase in Dubai is only legally valid if it has been registered with the Dubai Land Department. Buyers are issued the official title deed as legal proof of ownership.
Transfer of Ownership
Instead of visiting a notary, the transfer is finalized by the DLD upon transfer of ownership. Alternatively, you can visit an authorized transfer trustee office. The buyer and seller, or their authorized representatives, must be present. A DLD employee is always present during the transfer of ownership.
The buyer pays the outstanding purchase price using a manager’s check—a check certified by the bank. Additional fees are also due. This also answers the question: Notary fees—when are they due? The fees, amounting to four percent of the purchase price, are to be paid to the DLD by cashier’s check or in cash. The new title deed is then issued and handed over to the buyer. The deposited down payment check is either destroyed or returned to the buyer. The seller receives the check for the full purchase price. The transfer is now complete, and the buyer immediately assumes the benefits and risks associated with the property. This means that the buyer must arrange for property insurance and set up the necessary utility contracts so that the property is promptly supplied with electricity and water.
For off-plan purchases, payment to the developer is made in installments according to a set payment schedule. Depositing the funds into a government-regulated escrow account protects the money in the event that the developer becomes insolvent.
Buying a House—What Does the Notary Need?
In order to complete the transaction at the DLD, the notary must have all real estate documents and proof of identity on file. If this is not the case, the transaction will be delayed, or the real estate purchase may not be able to be completed at all.
The DLD must receive the following documents:
- Proof of identity: valid passport
- Emirates ID: Proof of residence permit (not always required)
- Real Estate Documents: Purchase Agreement, Title Deed, or Extract from the Land Register
- Proof of Payment: Receipts for the DLD Fee
- Mortgage Registration: When a mortgage is involved, proof of payment and registration of the mortgage must be provided.
- Additional Documents: In some cases, additional documents may be required. These may include, for example, declarations of division for condominiums or certificates of inheritance.
The Role of the Dubai Land Department (DLD)
As previously discussed, the notarial function in Dubai is largely handled by the DLD. As a government agency, the DLD is responsible for all matters related to real estate transactions in Dubai. The department ensures that all such transactions are adequately documented and legally sound.
The responsibilities of the Dubai Land Department in connection with real estate purchases:
- Legalization of Real Estate Purchases: The DLD documents and legalizes all real estate sales.
- Documentation and Approval: DLD handles all aspects of the organization, approval, and documentation of real estate transactions in the emirate.
- Mortgage Registration: For mortgages, the required fee—which is necessary to legally secure the mortgage—is registered.
- Regulation of the Process: The Dubai Land Department ensures that all laws and regulations governing the purchase of real estate are followed.
Selling a House – When Will You Receive the Money After the Notary Appointment?
The DLD acts as a notary in Dubai, performing both administrative and legal tasks. The timeframe between the DLD’s processing of the transaction and the payment of the purchase price depends on the relevant purchase agreement and the completion of the land registry entry. Overall, this process is expected to take several weeks. As soon as the purchase agreement is submitted to the DLD and the transfer of ownership has been completed, both the seller and the buyer will receive confirmation from the DLD.
Overview and Duration: Key Points
- Submitting Documents: Once the purchase agreement has been signed, the transaction must be submitted to the DLD within a maximum of 60 days.
- Registration and Processing: Once the Dubai Land Department has processed the documents, the property is entered into the land registry. The efficiency with which this process is handled has a significant impact on the duration of the transaction.
- Payment of the purchase price: The purchase price is not due until the DLD has completed the registration and issued the provisional certificate of title.
- Completion of the Purchase Process: The buyer is notified by the DLD that the transaction is complete, and ownership of the property is thus registered.
An Overview of Notary Fees When Selling a House
The following costs are incurred as part of the real estate transfer process handled by the DLD:
- Dubai Land Department fee: 4 percent of the purchase price and 580 AED as an administrative fee for issuing the title deed
- Real estate registration fees: Property value under 500,000 AED = 2,000 AED + 5 percent VAT. Property value over 500,000 AED = 4,000 AED + 5 percent VAT
- Mortgage costs: 0.25 percent of the amount is due, plus a fee of 290 AED.
Is there a DLD exemption?
Not all buyers are eligible for an exemption from DLD costs. Whether an exemption is possible depends on the project and the developer.
You may be eligible for the DLD exemption if:
- Off-plan properties can be purchased directly from the developer.
- Developers have launched official DLD exemption campaigns.
- The purchase is completed within the specified campaign period.
- The minimum down payment or the terms of the payment plan have been met.
Photo credit: Depositphotos.com – [email protected] (Hany Musallam)
