Real estate investment is not a dream but a reality of Dubai-like cities. Today, it is one of the wisest moves for financial investment after technology. However, understanding a certain location’s laws is also necessary when investing. Dubai holds the foundations of many businesses; hence, it is a business hub and an attractive market for many investors.
The most significant attraction of Dubai is the option of freehold property. Non-UAE residents can acquire the property outright in Dubai through freehold ownership.
It guarantees that the buyer will always own the property and the land on which it sits.
In this article, we will talk about the legal aspects of buying freehold commercial property in Dubai. Let’s go!
What Does Freehold Property Mean?
Freehold property refers to real estate assets in which the owner owns and controls the property entirely. This means that, unlike leasehold properties, where ownership is limited to a lease term or length, property owners can enjoy perpetual ownership with no time limits.
In Dubai, the government established freehold property ownership for foreigners in some locations, allowing expats to own homes outright and possess titles with full rights to the land and structures.
What is the Major Law for Freehold Properties in Dubai?
This is the Dubai Law No. 7 of 2006 (Freehold Ownership Law). This legislation grants the right to own property in the Emirate to citizens of the state, citizens of the Gulf Cooperation Council for the state of the Arab States of the Gulf, their completely owned companies, and public joint stock companies.
The law also allows non-UAE nationals to gain freehold ownership of real estate in specific selected regions of Dubai, as well as the ability to use or lease property for a maximum of 99 years. It describes freehold property owners’ rights and obligations, including the registration process, transfer procedures, and dispute resolution systems.
Top Legal Aspects Of Buying Commercial Freehold Property In Dubai
Commercial spaces in Dubai are established for business benefits. They offer a variety of plots for sale in UAE, along with malls and hotels. With the right location, you get busy business hubs, shopping centers, and retail outlets too.
Other business districts offer a variety of office spaces, ranging from modest offices to entire floors. These freehold commercial spaces cater to a wide range of business kinds, including both startups and major international organizations.
However, regardless of your interest, whether it is malls for sale in the UAE or any other commercial freehold property, you must know its legal aspects. Here are a few initial matters you need to take into account.
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Prepare the Buyer/Seller Contract
Whenever you spot the best freehold commercial property for sale in Dubai, you need to learn the terms from the seller. Discuss whether you should pay in cash or get a mortgage.
Besides, never forget to craft a draft with clear contract terms, including price, payment methods, and any other terms to avoid future issues. If needed, you can always consult an agent or a real estate lawyer to make better decisions.
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Sign the Real Estate Sale Agreement
The selling contract (Form F), also known as a Memorandum of Understanding (MOU), is available for download on the Dubai Land Department’s official website. You can specify your terms in the contract.
Both you and the seller should sign it in front of a witness, ideally at the Registration Trustee’s office. You must pay the Registration Trustee a 10% security deposit on the property, which is returned upon completion of the transaction.
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Transferring Ownership at the Registrar’s Office
Always keep the major significant documents ready for the smooth process of buying commercial properties for sale in the UAE. you will need to submit all the documents along with the payable cheque for the property price. Additionally, keep the original ID, passport, signed Form F contract, and NOC ready.
After verifying the data and paying the fees, you can get the transfer on the same day. Remember to keep the lawyer with you for verification. Following approval, a new title deed will be issued in your name as the new owner.
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Contractual Agreements
A detailed contractual agreement is the foundation of any transaction to buy properties in Dubai. A thorough contract describing all terms and conditions should be established before concluding the land purchase.
This contains payment plans, delivery deadlines, and any contingencies. Having a legal practitioner analyze the contract ensures that the buyer’s interests are properly protected.
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Don’t forget to Apply for a No Objection Certificate (NOC)
One thing to remember about the Freehold Commercial Property in Dubai is an NOC. Schedule a meeting with the developer to get a No Objection Certificate (NOC) and complete the ownership transfer. The developer will provide the certificate if the property is free of outstanding service bills or charges.
Bottom Line
Navigating the legal aspects of buying freehold commercial property in Dubai is crucial for a successful investment. Understanding the laws and following the correct procedures can secure a valuable asset in one of the world’s most dynamic business hubs.
At Las Colinas, we offer expert real estate services to guide you through every step of the process, ensuring a smooth and seamless transaction. Contact us today to explore prime commercial properties in Dubai.
