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Buying a Home in Dubai - Some Tips and Laws That You Should Know
The Dubai Studio City, located to the north of the Persian Gulf on the Arabian Peninsula is now one of the fastest growing real estate developments in the world. Located close to Dubai on the UAE’s northern coast, the city has been designed around a green belt of land that is separated into nine zones. Each zone is completely pristine of all kinds of natural and man-made influences. This design feature is what sets this unique property from other real estate developments in Dubai. Located on dry land, property developers are free to incorporate any form of development into the plan for their developments, which can often include luxurious villas, resorts, sky scrapers, hotels, shopping malls, and all other forms of real estate development.
As Dubai is an entirely self-contained area, there are no legal requirements for local residents to obtain a license to reside or work in the city. This, in itself, creates an influx of skilled workers from across the globe who have the legal right to reside and work in this pristine environment. Residents have full access to all public services including education, healthcare, employment, health, and social welfare services without any problems. There are no restrictions on travel within the city limits and foreigners are also free to visit any part of the city they choose. This, in itself, makes Dubai a sought-out location for individuals looking for permanent residences and businesses looking for potential franchisees.
Despite its popularity, it is still necessary for foreigners to adhere to some laws when they purchase property in the city. The law is almost identical to that governing normal, real estate transactions in the United States. Property developers are required by law to apply the law consistently to each new project they develop and present to buyers. Developers are also required to perform title searches on all new properties they present to the public. All property should be registered in the name of the person who owns it and not in the name of an entity. If you are considering purchasing Dubai real estate, it is important that you familiarize yourself with these laws.
Despite its popularity, it is still necessary for foreigners to adhere to some laws when they purchase property in the city. The law is almost identical to that governing normal, real estate transactions in the United States. Property developers are required by law to apply the law consistently to each new project they develop and present to buyers. Developers are also required to perform title searches on all new properties they present to the public. All property should be registered in the name of the person who owns it and not in the name of an entity. If you are considering purchasing Dubai real estate, it is important that you familiarize yourself with these laws.
Another concern that most buyers have is the existence of the “Door Money”, which is a term used to describe a payment made directly from the property developer to the seller. The door money is used for the payment of a service tax and other fees and penalties related to the development of the property. Unfortunately, a lot of the time, door money is used for the payment of the Dubai airway tax. It is a widely practiced practice that can lead to huge legal fees for the developer, which results in a loss for the buyer and a lower price on the property.
- There is one specific law that is applied in Dubai Studio City that has the potential to affect your purchase of a home. This law, known as the “Abu Dhabi Property Law”, prohibits the transfer of an apartment or a hotel to a person or an entity located outside of the emirate. This law was implemented in response to the construction of many residential buildings in the United Arab Emirates with foreign investors. This can be risky if you are planning to buy property in Dubai with investment purposes, but it is important to note that this law only affects new construction and not existing properties.