Real Estate Regularity (RERA), a division of the Dubai Land Department (DLD), is responsible for setting laws and regulations for the real estate sector in Dubai. DLD itself is a government agency that serves the purpose of regulating Dubai real estate.
RERA’s duties include:
- Resolving tenant-landlord disputes.
- Regulating foreign investment.
- Monitoring and ensuring authentication of advertisements in the real estate sector.
- Providing licenses to real estate developers and brokers.
- Monitoring market development.
- Monitoring financial institutes and law companies serving the real estate industry.
Regulation for Real Estate Developers
Property developers have to adhere to the following real estate laws in 2023:
- It is mandatory for developers to obtain a license before they can start a real estate developer.
- They must provide detailed information pertaining to their projects. It should include the property type, location, size, etc.
- Developers are required to maintain a trust account for every development. It is the same as the escrow account. The amount deposited by buyers is deposited in the trust account.
Regulation For Real Estate Brokers
The latest real estate laws in 2023 for brokers are:
- Brokers are required to undergo training from Dubai Real Estate Institute before working in Dubai.
- They must have a valid license, which can be obtained by passing a RERA exam.
- They have to follow a set of guidelines when working with different clients.
Dubai Strata Law
Dubai Strata Law is applicable to multi-unit developments. For example, if a building or development contains multiple units, it’s called a multi-unit development. The main principle of The Strata Law relates to the division of development into different units that can be owned privately. Furthermore, it also concerns jointly owned common areas of the development, such as parks, lobby, swimming pools, etc. An owners association is set up to manage these jointly-owned areas.
The association is responsible for maintaining and managing these facilities and common areas.
Ownership Laws for Expats in Dubai
One of the main advantages of investing in real estate in Dubai is the ease of ownership for foreign investors. According to Dubai real estate laws in Dubai, non-UAE nationals can own properties in Dubai. However, they can do so in certain areas only, which are called freehold areas in Dubai. The UAE has a foreign ownership policy that allows non-UAE nationals to own property in designated areas of the country. However, it is important to note that there are certain restrictions on foreign ownership in Dubai, they must obtain approval from the DLD before purchasing a property.
3 Broker Rule
As per this rule, a seller can only list their properties with maximum 3 brokers. The initiative was taken to tackle the problem of duplicate listings since earlier a seller could contact multiple brokers who would then list properties on multiple platforms, resulting in a high number of duplicate listings.
Using a Conveyancer
The property market in Dubai is considered safe for both buyers and sellers. However, using a conveyancer is highly important to navigate through the process. The responsibility of the conveyancer is to supervise the legal transfer of the property. It also includes drafting and reviewing the agreement’s terms and completing different financial, legal, and administrative duties, which are often deemed complex for a layman.