Purchasing an office in Dubai involves steering a range of legal requirements and regulations. Understanding these legal requirements is important to ensure a smooth transaction and compliance with local laws. If you want to buy office Dubai, here’s an inclusive guide for you.
Eligibility criteria:
Foreign investors are allowed to purchase commercial property in Dubai, but there are specific eligibility criteria. Foreign investors can buy property in designated freehold areas, which offer 100% ownership. Ensure you are investing in one of these approved zones if you are a non-UAE national. Businesses and local investors can purchase property in a broader range of areas, including those designated for mixed-use or commercial purposes.
Property ownership laws:
Dubai’s property ownership laws distinguish between freehold and leasehold properties. Freehold properties grant full ownership rights, including the land and building, whereas leasehold properties offer ownership of the building for a specific period, typically 99 years, with the land remaining under the ownership of a third party. Understand the type of property you are purchasing to ensure it meets your investment goals.
Due diligence and verification:
Conduct thorough due diligence before finalizing the purchase. Verify the property’s title deed and ensure it is free from any legal encumbrances, disputes, or mortgages. The Dubai Land Department (DLD) issues title deeds, and you should ensure that the property you intend to buy has a valid and clear title deed. Engage legal and real estate professionals to assist with this verification process.
Sales and purchase agreement:
Once you have identified the property, a Sales and purchase agreement (SPA) must be drafted and signed. The SPA outlines the terms and conditions of the sale, including the purchase price, payment terms, and completion date. It is important to have a legal expert review the SPA to ensure that your interests are protected and that all terms are clearly defined.
Deposit and payment:
Typically, a deposit of around 10% of the purchase price is required to secure the property. The deposit is paid to the seller or their representative, often through a real estate agency. The remaining amount is paid upon transfer of ownership.
Transfer of ownership:
The transfer of ownership is completed at the Dubai Land Department (DLD). Both parties must be present, and the transfer is recorded in the DLD’s system. You will need to provide necessary documents, including the signed SPA, proof of payment and identification documents. The DLD charges a registration fee, typically a percentage of the property value, which must be paid at the time of transfer.