Many investors and buyers rent and buy properties in Dubai but they are unaware of the strict laws and then suffer big losses like many people think that we will allow someone to rent in our property for 6 months then we will sell the property but they are unaware that they cannot sell the property before one year due to a contract. In this article you will find real estate laws in Dubai.
Real estate laws in Dubai
Following are some real estate Dubai laws that buyers need to know:
1. The Dubai land department (DLD)
The Dubai land department is basically a department that records all the transactions of properties in Dubai. It monitors everything and is a must to know before buying a property. The real estate regulatory authority (RERA)is basically a division of this department. The duty of this division is to make rules regarding properties. They have a lot of duties to fulfil, following are some of them:
- Record everything to solve property related problems later.
- Reviewing the rates of foreign investment in Dubai and noting the investors.
- Monitoring if their real estate advertisers are trustworthy to work with.
- They licence the developers and brokers to work officially.
- They monitor all the factors of real estate like bank, Insurance, law etc
- They completely review the market,
- sales and manage their development.
2. Real estate laws
● Dubai strata law
Dubai strata law applies to multi unit developments like townhouses and apartments. The principal of this law is to divide the property into privately owned units. It then manages the rules for the maintenance of common areas and amenities in these properties.
● Property ownership law
Law no 7 of 2006 is a very important law. The law mandates that all property ownership in Dubai must be registered with the Land Department. This registration is necessary for the legal recognition of ownership. Those who want to own a property anywhere in Dubai must be a GCC citizen or a UAE citizen. Another article suggests that other residents can also buy properties in Dubai but only with the specified areas that the Dubai government has chosen. Luxury property for sale in Palm Jumeirah is yet another property you can deal in.
3. Rental property laws in Dubai
As many people invest on rental properties in Dubai the government have set particular rules that will have to be followed when renting a property:
● The tenancy contract
Tenancy contract is a contract which is signed by the one who is renting a property. It is basically a contract that you cannot give up on the property before one whole year.
● Increased rent?
Another important thing to note is that when you are in the tendency contract you cannot increase the rent even by 1% until the contract renewal. This is why many investors don’t prefer renting in Dubai and instead buy properties.
● What if there’s a disagreement?
Sometimes there are disagreements between the renters and the customers but they cannot break the contract. In this case they must contract RERA via email. Highlight the main problem and what you want to do. When you receive the reply, do what they say because you cannot go against the orders.
Conclusion
Before buying or renting a property in Dubai you should know the laws that are mentioned above.