DUBAI REAL ESTATE LAWS

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DUBAI REAL ESTATE LAWS

Dubai is a city that is known for its rapid development and economical growth. The expat community thrives here with its booming economy and the real estate market has become a major attraction for investors all over the globe. If you’re considering buying a property in Dubai, it’s important to first understand the laws and regulations that govern real estate.

The real estate laws in Dubai are designed to protect the rights of both buyers and sellers.

Dubai Land Department commonly known as DLD

The DLD is the government department responsible for managing and regulating the real estate market in Dubai. The DLD is responsible for recording/registering all transactions regarding real estate.

Real Estate Regulatory Authority also known as RERA

This is a division of the DLD responsible for setting laws and regulations of the real estate market in Dubai. There role includes the following:

1.      Collecting all details of landlords and tenants.

2.      Resolving disputes between landlords and tenants.

3.      Regulating foreign investment in Dubai.

4.      Monitoring real estate advertisements.

5.      Licensing real estate developers and real estate brokers.

6.      Monitoring and managing market development.

7.      Monitoring banks, insurance, and law companies strictly within the real estate industry.

Regulations for Developers

Real estate developers must obtain a license from RERA before they can start any development project. The law requires them to provide complete and detailed information about the projects including location, size, and the type of units that they plan to develop.

RERA also requires developers to maintain a trust account for each project. All amounts paid by customers are paid into the trust account to ensure that all the funds are used towards the project.

Regulations for Brokers

There is the Real Estate Brokers Law. This law states that anyone wishing to act as a broker in Dubai must undergo Dubai Real Estate Institute certified training and pass a RERA exam to obtain a real estate license. This ensures that brokers follow rules and regulations when working with clients.

Dubai Strata Law

The Strata Law applies to multi-unit developments such as townhouses. The main principle is the division of the property into privately owned units and jointly owned common areas which are then managed by an owner’s association. The law sets the rules for the management and maintenance of common areas and facilities in such types of property.

Foreign Ownership Laws

UAE has a foreign ownership policy that allows buyers who are not UAE nationals to own property in designated areas in the city. This policy is designed to encourage foreign investment and has contributed to Dubai’s reputation as the ideal destination for property investment.