What Are The Rules To Buy Property in Dubai?

What Are The Rules To Buy Property in Dubai?
What Are The Rules To Buy Property in Dubai

If you ask somebody to give a reason to invest in real estate property in Dubai, they will give you a dozen. Dubai has seen rapid development over the last several years. With time, it has become one of the most preferred destinations for real estate investment across the world.

Apart from its stable economy, the favourable policies framed by the government and vibrant infrastructure have played a key role in attracting investors. While the local residents continue to invest in real estate, this sector has greatly attracted the attention of international investors as well.

Even if somebody is not a seasoned investor, they benefit tremendously by investing in the real estate market in Dubai. However, to ensure that investing in real estate in the city does not get you into any kind of trouble and proves to be a pleasant experience for you, you should get in touch with a real estate company and brush up your knowledge on the various rules and regulations governing this sector in Dubai.

Here are some of the rules you must remember while buying property in Dubai:


Before buying a property in Dubai, you have to ensure that it is free from any kind of legal burden and issues. If there is some dispute or other problem surrounding the property, you will get into trouble after acquiring it. To stay away from trouble of any kind, it is important to take certain steps to ensure that the property you are planning to buy is clean and does not come with any liability.

A buyer, before acquiring the property, should request the developer or the seller to come with them to the Dubai Land Department or DLD or hand them over a power of attorney to get some important details about the property and confirm that the seller has ownership over the property. Through this process, they will also check if the property is free of liens, mortgages, and other types of charges.


While buying regular or off plan properties in Dubai, a buyer would be required to sign the sale and purchase contract. Before putting their signatures on the contract, the buyer should make it a point to inspect the property thoroughly. The contracting parties are required to use the regular form of a sale contract, also referred to as Form F.

In the contract, both parties can mention their own terms and conditions which have to be agreed upon. If the parties are represented by a broker during the transaction process, the standard form by DLC that is designed for the appointment of real estate broker is also required to be formally signed.

No Objection Certificate

The buyer must work towards acquiring a No Objection Certificate or NOC from the project’s developer to make sure that the seller has made all the requisite payments for the service charges governing the property. If the services have not been paid, you will have to pay them after acquiring the property. For the NOC, the developer could charge AED 500 as an administrative fee.

Registrar Office

The property registration process is carried out by the DLD with the help of a bunch of licensed trustee offices. The trustee office would have a registrar whose job is to verify all the documents the seller and buyer require and feed all this information into a computer system that is directly connected to the Land and Property Department.

After the Land Department receives an online approval, the buyer will be issued with a new title deed. If the parties involved submit the documents on time or in advance and the papers are found to be authentic, transfers will be carried out on the same day.

Process of Buying a Property

When you consult a real estate company or agent, they will take you through the process of purchasing a property in Dubai. Having prior information about the buying process makes everything much easier.

After you find a property you like and are sure about investing in it, you have to put across an offer. Once the offer is accepted, the buyer and the seller will have to sign an MOU or Memorandum of Understanding, which can be best described as an agreement that enables one to step into a Sale and Purchase Agreement or SPA.

After signing the MOU, the buyer and the seller would have to give a deposit. The deposit amount is mostly 10% of the total buying price. The MOU should contain accurate information about the status of the deposits. If the buyer decides to get out of the deal after signing the MOU, they will end up losing their deposit. Before signing the MOU, the buyer has to be sure about the fact that they will be able to commit to the final payment and transfer date.

If the buyer opts for a loan, the bank will try to determine the value of the property. If the bank finds that the value of the property is equal to or more than the property they are planning to acquire, the bank might sanction the loan. Banks usually take around 30 days to process a property loan and transfer the amount to the lender’s account.

Once the money or finances have been arranged, the seller receives an NOC or No Objection Certificate from the developer which confirms that the required fees have been paid by the seller and the developer does not object to the transfer taking place. The signing process regulated by the SPA has to be attended by the parties. If no finance is involved, money is handed over directly. If finance is involved, the bank provides a ‘comfort letter’ which states that the payment will be released once the SPA has been signed.

Usually, the developer takes a couple of days to sign the SPA. Once this process goes through, the buyer is declared as the new owner. The developer or the seller takes charge of their copy of the SPA along with the comfort letter which directs the bank to release the remaining funds.

Company Bio – Falcon Premier Real Estate

When you look for the best real estate agency in Dubai, you will find most people pointing you toward Falcon Premier Real Estate. For years, the company has helped people secure the right properties for themselves at fair prices. Apart from helping them crack the right deal, the company has guided both individuals and businesses towards making the right investment decisions for themselves in the real estate market in Dubai.

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