FAQ's
Select one of the frequently asked questions below to learn more about buying, selling, and renting real estate. Also, begin to think about important things to consider when diving into your real estate search.
An escrow account is generally a third-party medium that holds the money transferred from the buyer until the merchant fulfills the escrow agreement. A failure to fulfill this agreement from the merchant results in the money being refunded to the buyer.
An escrow account in the UAE real estate market has a very specific function. According to escrow account laws, the developers of different projects have to open an escrow account for every project. Doing so allows for better regulation of the funding that project developers receive from their buyers for project construction.
Freehold property is a kind of property purchase that entitles a buyer to own the plot and the unit. That landowner is entitled to the title deed under their name. Freehold property is inheritable to an heir. Moreover, the owner holds the authority to occupy, lease, or sell the property.
The purpose of allowing freehold property purchases was to facilitate foreign investors and encourage them to invest in the UAE. This law allows expats to purchase freehold properties in Al Barsha, Emirates Hills, Palm Jumeirah, and Dubai Marina.
A proper power of attorney is a legal proxy that benefits property owners and buyers. According to the law, a person with the power of attorney can buy, sell, or transfer the possession of a property on the behalf of their client. The POA generally allows property sale, mortgage, and gifting. Typically, the validity of such type of POA is 2 years. On the other hand, the POA will be valid for five years in case it is attained for the property purchase. The date of notarization at the notary public is when this POA becomes valid.
Ejari stands for ‘my rent’. In Dubai, it is an electronic online registration system to register and regulate tenancy contracts. This system governs rental transactions and ensures that all contracts are law-abiding. Thanks to the Ejari system, Dubai is one of the most regulated rental markets in the world.
In case the property is being resold, the buyer and reseller have to sign an MOU. This MOU, or Memorandum of Understanding, defines the terms and conditions of the sale transaction between the buyer and reseller.
On the other hand, a SPA will be signed if the buyer purchases the property directly from the developer. SPA, or Sales Purchase Agreement, states all the terms and conditions about the sale transaction and is an essential document to be signed by the buyer and developer.
Here is an overview of the documents needed to list a property with Noya Luxury Properties Real Estate:
Documents required for leasing:
- Sales Purchase agreement (SPA) or Oqood or Title Deed
- Owner-signed leasing form
- Filled listing sheet
- Signed passport copy of the owner
- POA document and a signed passport copy of the POA
Documents required for sale:
- Sales Purchase agreement (SPA) or Oqood or Title Deed
- Owner-signed Form A
- Filled listing sheet
- Signed passport copy of the owner
- POA document and a signed passport copy of the POA
**You will need a Certificate of Completion to get it verified by the Propertyfinder for newly handed over properties.
In case the property is being resold, the buyer and reseller have to sign an MOU. This MOU, or Memorandum of Understanding, defines the terms and conditions of the sale transaction between the buyer and reseller.
On the other hand, a SPA will be signed if the buyer purchases the property directly from the developer. SPA, or Sales Purchase Agreement, states all the terms and conditions about the sale transaction and is an essential document to be signed by the buyer and developer.
Here is an overview of the documents needed to list a property with Noya Luxury Properties Real Estate:
Documents required for leasing:
- Sales Purchase agreement (SPA) or Oqood or Title Deed
- Owner-signed leasing form
- Filled listing sheet
- Signed passport copy of the owner
- POA document and a signed passport copy of the POA
Documents required for sale:
- Sales Purchase agreement (SPA) or Oqood or Title Deed
- Owner-signed Form A
- Filled listing sheet
- Signed passport copy of the owner
- POA document and a signed passport copy of the POA
**You will need a Certificate of Completion to get it verified by the Propertyfinder for newly handed over properties.
Oqood, the Arabic word for contracts, is an online service that Emirates Real Estate Solutions offers to developers. The purpose of this service is to help with property registration between buyers and developers.
A property whose construction has not yet begun or is in initial stages is known as an off-plan property.
DLD stands for Dubai Land Department, and it is a regulatory authority that oversees legislation and the organization of all properties and real estate. It also deals with all real estate transactions in Dubai.
DLD Waiver refers to the waiver of the DLD fee charged on the occasion of a property purchase. This fee constitutes 4% of the property value and should be paid by the buyer. In general, this fee is payable by the developer instead of the buyer.
Freehold refers to the complete property purchase, which results in the buyer’s name on the title deed. On the other hand, leasehold refers to getting a property on lease for a period ranging from 10 to 99 years. In other words, leasehold is not a complete property purchase.
RERA, or the Real Estate Regulatory Agency, is a DLD faction responsible to take care of the real estate industry regulations in Dubai. The primary job of this department is to regulate the relationship between all parties involved in a contract and organize the property exchange process.
DEWA stands for Dubai Electricity and Water Authority, the department providing electricity and water supply in Dubai
You can visit the DEWA website or visit DEWA offices physically to apply for their services.
Registering every tenancy contract with Ejari is a must. It is mainly the tenant’s responsibility to get the contract registered. The necessary credentials required for this registration are the signed title deed, SPA, title deed, passport, copy of landlord’s passport & fingerprints, SPA, and visa & EID.
Yes, it is necessary to get registered with Ejari before applying for utilities from DEWA.
A security deposit 5%/10% of the Annual Rent is paid to the landlord by the tenant in advance. This fee is held in reserve to protect the landlord if in case the depositor fails on any contractual obligation. It covers Loss of Rent, Damage to the Property, Lost of Security Keys and Repairs that are not wear and tear.
Generally, a security deposit of 5% is required for an unfurnished property, whereas 10% is needed when renting a furnished property. Moreover, you will have to pay a DEWA deposit of AED 2000 when renting an apartment and AED 4000 when renting a villa. An Ejari fee of AED 225 is also payable here. In addition to everything, there will also be an agency fee if there is a chiller requiring a deposit.
The tenant must present original copies of the passport and a valid residence visa to qualify for a tenancy agreement for a property. These documents must be presented to the property broker. A valid trade license, general managers’ passport copy, and a valid passport are required if the person renting the property is a corporate tenant.
Yes. The tenancy contract’s registration with Ejari is a must for contract validation. According to the law, the tenant will be disallowed to make any claim without fulfilling this requirement.
Yes, but you have to notify your landlord two months in advance when terminating your tenancy agreement. Moreover, you will have to pay two months’ rent in advance and settle all your utility bills when vacating the property.
No, Dubai real estate laws do not allow landlords to disconnect these services to vacate a tenant from their property.
A primary market is a marketplace where new properties are available for purchase directly from the developer.
The following documents are needed when purchasing freehold property in Dubai:
- Emirates ID
- A valid passport
- A credit card if you prefer paying with the card
- Reservation form
- A filled-in Customer Information Form
Registering a sale generally takes 30 minutes, given that all of the necessary documents are in order.
Yes, you are authorized to sell an off-plan property before its date of completion.
An investment of AED 1 million or above in at least one of three real estate properties makes you eligible for a UAE investor visa.
No, there is no tax payable on you if you are a resident abroad.
The advantage of contacting a mortgage broker is you get an unbiased opinion on available mortgages and plenty of other options.
Yes, the option of mortgaging a property is available in Dubai.
Yes, Dubai real estate laws authorize foreign nationals to own freehold properties in Dubai’s designated freehold areas. These properties are inheritable to the heirs of those foreign nationals.