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How is the real estate market regulated in Dubai

Feb 15, 2022

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It is well-known that the UAE is famous not only for ready-built real estate, but also for the best off-plan projects in Dubai for investment. Every foreigner who wants to buy real estate in Dubai should know the basics of regulating the local market. This will help to avoid problems and speed up the process of real estate registration. The source - https://www.axcapital.ae/ - will give you the information about the legal and practical aspects of property ownership in the country.

Who can become the owner of real estate in the Emirates


The UAE Civil Code does not explicitly prohibit the ownership of land plots by foreigners. However, each of the seven Emirates has the right to make its own decisions and regulate this issue at its discretion. In accordance with Article 4 of Law No. 7 of 2006, people, who live on the territory of the UAE and GCC countries can buy and own any properties in Dubai.

As for people who are not citizens of the UAE and Persian Gulf countries, their rights are regulated in accordance with Rules No. 2 of 2006 and Regulation No. 1 of 2010. So, they can buy and own real estate on the territory of freehold zones, or rent it for up to 99 years.

Dubai's laws on the real estate market


Forms from RERA


The conclusion of transactions between the buyer and the seller takes place through special forms (RERA) established by the Dubai Land Department (DLD) and the legislation of the United Arab Emirates.

RERA is a special agency, one of the divisions (DLD) that regulates the real estate market. It deals with the following issues:

  • Laws on buying and renting real estate;

  • Legalization of construction;

  • Registration of various real estate contracts.


Form A from RERA

It is one of the most important. When the seller finds an agent to continue the sale, they will both need to sign a resale form.

The most important points of the transaction concluded between the seller and the agent are placed in this form. It covers all aspects of property and its characteristics. You also need to specify financial details in the form: the price, the size of the mortgage (if it is used), as well as payment terms. This document guarantees that the property will not be placed on other services, other than the specified one. After signing Form A, Trakheesi DLD confirms it and assigns a real estate ad number.

Form В

If you are a buyer and want to purchase a property in the UAE, you need to sign Form B. This form confirms agreement with the terms of the transaction between the buyer and the agent. To ensure a high-quality and safe search for real estate, we advise you to look for agents with a RERA certificate.

Agreements preceding the contract of purchase and sale of real estate in the UAE


An important aspect of the purchase and sale transaction between the seller and the buyer is the signing of a memorandum of understanding (MoU). All the details of the transaction are written here, which are signed by both parties.

Purchase and Sale agreement in the UAE (Form F from RERA)

The Form A details the property, financial data and fees that both sides paid to the agents.

In May 2014, DLD launched unified contracts, which in their form represent templates of written contracts for real estate. It can be used in any real estate transactions and, if necessary, enter additional conditions.

This is one of the obligatory forms of RERA for any real estate activity in Dubai. A notary is not required to conclude a contract of sale.

The sales contract can be drawn up by an agent and sent in electronic form to an e-mail. The completed contract must be sent to the DLD for registration.

What guarantees does the seller give


The seller of the property guarantees:

  • The rights to the property are not encumbered by a mortgage;

  • There is the right to sell;

  • The property has no debts;

  • Utilities and maintenance costs are fully paid;

  • Ownership and development obligations have been fulfilled.


Buyer's responsibilities



  • The buyer undertakes to pay half of the value of the property;

  • The buyer must submit the package of documents necessary for the purchase and registration of the property to the DLD (visa or Emirates ID).


Our assistance in buying real estate in Dubai


Are you thinking about buying a property in Dubai? AX Capital managers will find a property for your needs and preferences. They will select an apartment for investment, accommodation and recreation, as well as provide information support and comprehensive support in the process of concluding a purchase and sale transaction. Contact a real estate agent for a detailed consultation and an answer to your questions regarding real estate transactions in Dubai.

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