A Comprehensive Guide to Purchase Off-Plan Property in Dubai

Planning to invest in off-plan properties in Dubai? As a forward-thinking investor, you would like to secure your investment. Successful investors habitually seek due diligence services in Dubai to ensure they remain on track with legalities. At the same time, it’s imperative to assess your ROI and secure your property at the lowest cost, besides benefiting from a favourable payment plan.

However, capitalizing on such lucrative opportunities calls for a deep understanding of the country’s regulatory framework regarding these dealings.

In this edition, we are going to explore the key guidelines mentioned in Dubai Law No. 13/2008 regarding Real Estate Registers. This will present you with a comprehensive roadmap for acquiring off-plan properties successfully in Dubai.

Key Aspects to Focus on While Purchasing Off-Plan Property

In the first place, you must be aware of the norms governing foreign ownership in freehold areas. The process starts with exploring the designated areas for foreign ownership. Under the existing laws in the UAE, these are referred to as freehold properties. As a foreign investor, you need to select a property located in a freehold area to legally secure your investment.

1. Registration and Compliance

In Dubai, it’s essential to register all off-plan property transactions in the Interim Real Estate Register. Failure to comply within the 60-day timeframe may jeopardize the validity of the sale or property transfer.

2. Acquiring the Land

Both primary and subordinate developers need to obtain the necessary land and approvals from competent authorities in Dubai before initiating or selling off-plan units. The property register must record the development.

3. Legal Due Diligence

Legal due diligence buying property in Dubai involves a verification process with the government authorities like the Real Estate Regulatory Agency or the Dubai Land Department. During this step, the property is registered in the presence of an escrow account while the necessary permits are obtained.

4. Transparent Application Processes

Property buyers need to follow the legal procedures meticulously as they apply to register an interim real estate unit. They should furnish the necessary documents and information as requested by the Land Department of Dubai.

5. Protecting the Rights of Buyers

Legal actions on registered off-plan units are facilitated, allowing for legal transfers, mortgages, or other actions under the law. Developers are strictly prohibited from imposing additional fees for selling or reselling completed or off-plan units. Any administrative expenses must obtain prior approval from the Land Department.

6. Completion and Registration Protocols

Developers are mandated to get the finished project registered in the property register. This ensures the seamless transfer of off-plan units into the name of the buyer as per the contractual requirements.

7. Stringent Contract Formalities

Brokers and developers should refrain from engaging in informal contracts without obtaining prior approval from competent authorities to uphold the integrity of off-plan property transactions. Under the regulatory framework, such contracts will be considered invalid.

8. In Cases of Violation

Article 11 of Dubai Law No. 13/2008 explains that developers should inform the Department of violations, if any. If the issue remains unresolved in the next 30 days, the Department will issue an official document verifying the completion percentage and agreement of the developer. Developers can request public auctions, maintain the contract, or cancel them based on the rates of completion. Full refunds will be necessary in case the project isn’t initiated or cancelled.

Seeking professional support for legal due diligence

For prospective investors, it’s imperative to understand the norms under Dubai Law No. 13/2008. The IMC Group continues to be one of the leading partners for developers offering legal due diligence services. With professional support on the side, developers can proceed with their ambitious investments with confidence.