Frequently Asked Question in Real Estate
Here is a list of some common asked questions and their respective replies from Real Estate experts in Dubai.
Q: Who can own land and property in Dubai?
A: The Dubai Land Development regulations stipulated that UAE nationals and GCC
nationals can own land and buildings in Dubai. Non GCC nationals can own
land and properties in Designated Areas.
Q: Can expatriate women also own property In Dubai?
A: Yes. There is no gender – related Restrictions to the ownership of freehold property in
Dubai.
Q: Is the transfer of Leasehold affected at the Original cost of the Lease?
A: The value of a lease is calculated on the basis of the number of years remaining on the
leasehold at the prevailing Market situation.
Q: What are the requirements for registering a Land / property with the Land Department?
A: The documents required for registering a Property are:
*Original title from the Developer
*Original Site Plan
*Passport copy of Buyer
*A Cheque towards payment of charges and fees. (Payment in cash is also
accepted)
Note: The Seller has to pay 0.5 per cent and the buyer 1.5 per cent of the value of the property as fee.
Q: Does the Land Department also register apartments?
A: Yes. Apartments are registered. The department first registers the land, then the building
with all the apartments, site plan, all the details of the building, floor areas including
the designated parking spaces and details of each Owner.
Q: Does the land department decide the service charges levied by developers
from property owners for amenities and common facilities provided in
their residential projects?
A: These service charges is stipulated in the original sale contract between the
developer and the buyer ,or decided between the developer and the representative
of the residential communities in the designated freehold areas in consultations with
each other from time to time .The land department has no role in either deciding
or collecting these charges.
Q; Does the Dubai Land department provide a residence visa to the owner of a
property registered with the department?
A: The Land Department does not provide visas to anyone buying properties in Dubai.
The major developers have, however, marketed their projects with the offer of
"Automatic Residence Visa" for buyers of their properties. Clearly, the sponsorship
arrangement is between the Developer and the Buyer and the Land Department does not
get involved in the issual of Visas.
Q: What are the advantages and disadvantages Of Leasehold versus Freehold?
A: The Buyer’s Choice of Free hold or Leasehold depends on the particular needs of the
person. If a person, for instance, wants the property for a limited number of years,
Leasehold is the preferable option as the cost would be significantly less compared
to freehold. Similarly, the cost of leasehold for 30 years will be less than that for 99
years.
Q: How are mortgage properties registered?
A: Land or properties are registered with all the caveats on them, including the mortgage
contract between the property buyer and the bank / finance company. Once the mortgage
is fully paid out, the property is released from mortgage obligation.
Q: Is the ownership of a mortgaged property transferable?
A: A mortgage property is transferable provided the mortgage obligation on it is released.
It is between the financier and the owner to decide how the mortgage is settled. The
subsequent buyer can either take over the mortgage or pay up the full amount.
As far as the Land Department is concern, the release is issued once the financing
bank / company advises accordingly.
Q: What is the procedure for transferring ownership to the buyer after the
entire mortgage obligations are paid off?
A: Even where there is a mortgage on the property, the ownership is registered in
the name of the buyer. The only difference is that there would be a caveat on
the property. Once the mortgage is fully paid out, that is removed.
Q: What Are the fees for mortgage registration?
A: 0.25 per cent of the value of the loan.
Q: What are the fees for mortgage redemption?
A: Dh. 1,000 irrespective of the value of the loan.
Q: What are the fees for mortgage redemption?
A: 0.25 per cent of the value of the debt so transferred plus the transfer charge of Dh. 1,000.
Q: What are the fees for extending the period of the payment of mortgage contract?
A: Dh. 1,000, irrespective of the value of the debt.
Q: Does the Land Department register inheritance of land and other property?
A: Yes, the ownership is transferred on inheritance on payment of the prescribed fees.
Q: Can a party decide to abide by inheritance as per their own personal law?
A: If the property is owned by a Muslim, the inheritance will be according to the
principals of Shariah, as is the case with other assets. But in the case of non
Muslims, it will be based on their respective personal law or as per the
will bequeathed by the owner of the property.
Q: What are the charges for registration of the passage by inheritance?
A: Dh. 1,000.
Q: What are the fees for Registering a Will?
A: 0.125 per cent of the property that is the Subject of the Will.
Q: What are the fees for registration of Donation of land and property?
A: 0.125 per cent of the property so donated.
Q: What are the charges for effecting division among partners?
A: 0.25 per cent of the value of the property transferred.
Q: What are the fees for the family endowment?
A: 1 per cent of the value estimated for the family endowment, provided the fee does not
exceed Dh. 1,000.
Q: What are the fees for the issuance of the replacement deed of title?
A: Dh. 800.
Q: What are the charges for the issue of the maps?
A: Dh. 100.
Q: What are the fees for the estimation of the value of a property?
A: Dh. 2,000.
Q: Is it mandatory to engage the services of an attorney / broker to register
property with the Land Department?
A: The procedures of registration at the Land Department are very simple and do
not require the services of attorney or broker. The Department provides all
necessary information in this regard. But the Department has no objection
if any party to the transaction desires to engage a representative.
Q: Are Leaseholds also registered?
A: The Land Department registers Leaseholds in designated areas.
Q: Are there different procedures for the Registration of freehold & Leasehold?
A: No. The procedures for registering Freehold and Leasehold are the same but
the charges are different. Freehold properties are obviously valued at higher
levels while leasehold rates are lower and depend on the tenure of the leasehold.
Q: Is Power of Attorney acceptable for transactions relating to land and property?
A: Yes. The limits of the Power of Attorney give the attorney the scope of dealing with
the sale or donation or any other disposal of land or property. The Power of Attorney
should mention that the principal gives to the attorney the power of sales or donation
to the third parties. The attorney may not sell or mortgage for himself unless the power
of attorney does expressly mention that.
Q: How much are the brokerage fees?
A: It is recognized that the broker receives 1 per cent of the sale value, unless the
two parties agree on some other terms.
Q: Where can one get reliable information about a property before one buys it?
A: The Land Department encourages buyers and sellers of properties to access
all relevant information before they enter into any deal. Such information can be got
from across the counter at the Land Department or through the department
website: www.dubailand.gov.ae.The website has news and information
relating to land transactions, market indicators, statistics, most active communities etc.,
Q: Does the land department provide property valuation services?
A: Yes. The department provides property valuation services to the payment of the
necessary charges. Once an application is approval, specialist committee of the
department, whose members are experts on matters relating to land and real estate,
inspects the land location, property etc. and study the market trends to arrive at
an estimate value.
Q: Does the land Department decide the service charges levied by developers
from property owners for amenities and common facilities provided in
their residential projects?
A: These service charges are stipulated in the original sale contract between the developer
and the buyer, or decided between the developer and the representatives of the
residential communities in the designated free hold areas in consultations with
each other from time to time. The Land department has no role in either deciding
or collecting these charges
Q: Who regulated bodies such as the residential association or other residential
community groupings?
A: Theses bodies are regulated by the land department.
Q: Does the Dubai Land department provide a residence visa to the owner of a
property registered with the Department?
A: The Land Department does not provide visas to anyone buying properties in Dubai.
The major Developers have, however, marketed their projects with the offer
of “automatic residence visa” for buyers of their properties. Clearly, the sponsorship
arrangement is between the developer and the buyer and the Department is not in the
picture.
Source: Dubai Freehold Property Guide (First Edition 2006)
Government of Dubai, Land Department
