This Khairallah Law Firm guide will help you invest in Dubai real estate. Much of that information addresses questions investors ask regarding their real estate transactions and investments (i.e., what to do about the Dubai Land Department – DLD or Real Estate Regulatory Agency – RERA, developers in general, and other parties).

Is the Real Estate Project Registered with RERA? How to Invest in Dubai Real Estate

RERA is the regulator for every real estate project in Dubai. To ensure they deliver what is promised, each developer must first register their projects with RERA paying a fee of AED 150,020. This fee is paid when you send in the project registration application.

Should you neglect to register the real estate project with RERA or be involved in development activity without a license, that may result in an AED 100,00.00 fine and /or criminal sanctions including imprisonment based on provisions of Escrow Law (Law No. 8 of 2007 concerning Escrow Accounts for Real Estate Developments in Dubai -the ‘Escrow Law’). Following them is important because invest in Dubai real estate without abiding by those laws and regulations might put your investment into serious legal trouble.

Does the Project Have an Escrow Account? What Are the Account Number and Agent’s Name?

Any developer planning to sell off-plan units in a development project must open a separate escrow account with an escrow agent (such as a bank or financial institution) accredited by the DLD, as the Escrow Law requires. The developer must deposit all amounts received from third-party purchasers of off-plan units and loan payments from financiers into this escrow account. These funds must be used exclusively for the construction of the development project and for settling project financing payments. Additionally, every developer must register in the RERA TAS system and record all financial transactions there, in compliance with the ownership law.

The SPA (sale and purchase agreement) with the developer must specify the project escrow account number. Furthermore, all the money that comes from the investor has to be wired into this same original escrow account. Investors can view the escrow account details online on DLD website by entering their agent code and particulars of other information listed above, or through ‘Mashrooi’ (project in progress) mobile application which is launched by Dubai Land Department. It compiles into a single place the full list of Dubai Developers, their projects and key details including construction status per project/file number & escrow account info; These steps keep the opponents in check and provide clarity and confidence for those that make invest in Dubai real estate.

What Is the Project’s Completion Percentage and Expected Completion Date?

There is a service on the DLD website which allows investors to follow up and track the real estate projects in Dubai. Developers are key in uploading the pictures of the first and second phases to connect images with land numbers or project numbers which makes it easier for investors to look at the current status of completion by just entering this data. Moreover, this project status tracking service also has been added to the smart Mashrooi application enhancing further convenience. This will allow compliance with the property law Dubai for investors to remain informed about tram investments.

The expected date of completion must be agreed upon in the sale and purchase agreement between developer and investor. The agreement must also lay down the conditions if there is default on part of the developer in this timeline. Developers usually build in an allowance to extend the closing for quite a few months beyond what they project is the end of their construction, as there can be delays in completing work. Knowing these terms will help to invest in dubai real estate.

Is the Developer Registered with RERA? Does the Developer Own the Development Land, or Is There a Development Agreement? Insights for Those Who Invest in Dubai Real Estate

RERA allows companies registered with the Dubai Department of Economic Development (DED) under the activity of ‘real estate development’ or those holding a DED Professional Licence to register as developers for new projects. This registration process also ensures compliance with tenancy law Dubai and other relevant regulations.

1. i) A copy of the title deed for development land must be in the name of the developer Anyway, a project development agreement between the developer and landowner can be made. It could be done with RERA but the registration fee for this agreement is 4% of the current market value of land. RERA should sanction any changes to the pact and can exempt from registration fee if developer and landowner prove that they have common or co-beneficiaries in their corporate structure. Compliance with property rights law is an absolute necessity, which helps all to invest in Dubai real estate.

Conclusion 

This guide is from Khairallah Law Firm to learn everything you need to invest in Dubai real estate. This includes registering with RERA, supervising escrow accounts, monitoring project status, and adhering to other local laws. This tool is also not limited to these as the investors can get support from the DLD website and Mashrooi app which focus on keeping them updated with property rights law Dubai and tenancy law in Dubai. By adhering to these guidelines, investors would be able to tread the treacherous Dubai real estate waters with more confidence.

You can benefit from the free consultation for 30-min, and get the help you need from the best lawyers in Dubai, whether you’re in the region or not!