Legal Process to Buy Property in DAMAC Riverside

The DAMAC Riverside community stands majestically at Dubai Investment Park (DIP). DIP is a freehold zone so purchasing a property here gives you the right to own it for a lifetime regardless of your nationality. You can also stay outside Dubai post the property purchase and still retain your ownership.

A valid Passport is essential to start the purchasing process in any designated freehold area in Dubai. Dubai Investment Park is no exception! It confirms your identity during the purchasing process. Plus, a valid Emirate Id might be required besides other vital financial papers. It is not necessary though to show an UAE residence VISA.  

For buying an Off-plan property always ensure that the real estate developer is registered with the Dubai Land Department. RERA real estate agents ensure your rights as a buyer are safe as they are professionally bound to follow ethical practices under the watchful eye of Dubai Land Department. All through the buying and selling process you can relax knowing they are honest with you and maintain total transparency.

Also, as a matter of interest, RERA real estate agents are aware of the local real estate legal regulations to protect you from falling into legal pitfalls. So, hiring their service can also easily open your access to consult best legal experts that they usually include in their team. If you want you can also appoint a separate legal expert for better counselling and guidance. No restriction on it. 

Find them on Dubai Land Department Website- https://dubailand.gov.ae/en/

Now, let us tell you about a few fees and the reason you pay these fees for- 

• Property buyers (DAMAC Riverside or on any Side in Dubai!) always need to pay a Transfer Fee of 4% of the total Sales Price to the DLD (Dubai Land Department Fee). This 4% DLD Fee is the same as the ‘stamp duty’ in other countries. This is also called Property Registration Fees. It registers the property under your (property buyers) ownership.

• Then comes paying the Trustee Office Fess and it is a fixed amount. In Dubai, it is AED 4,000 plus 5% VAT (AED 4,200) for properties that are priced for AED 500,000 or above. It is AED 2,000 plus 5% VAT (AED 2,100) for properties priced below AED 500,000. Remember, the Trustee Office in Dubai is where the actual transaction between the buyer and the seller is carried out legally, under the supervision of the authorized real estate registration trustees.

• Now, let’s talk about Mortgage Registration Fees. This registration fee is applicable to you in case you borrow funds (mortgage) for property purchase. You pay it to the Dubai Land Department. The fee is 0.25% of the mortgage value (the amount you borrowed from the bank). PS: For mortgages, you need to submit a bank statement and Proof of Income. Non-residents (expatriates and also not residing anywhere in Dubai) are entitled to borrow 50% LTV of the property.

• Service Charges are the fees you pay to the real estate developer (at the time of purchase and recurrently after regular periods) as community maintenance fees. These are the small amounts you pay for your entitlement to the common amenities and areas within the community gate. It is an integral part of property ownership in Dubai legalities and budget. These are calculated based on the property's square footage and the property type and where it is in Dubai. Your agent or legal expert can guide you along with the real estate developer sales team better in this matter.

• Insurance is not mandatory, but necessary. Your legal consultant or RERA real estate agent would also recommend you. But, your decision should be the final. Never yield to suggestions if you do not agree to it. A little twist though– if you have chosen to mortgage for the purchase, Mortgage Protection Insurance is Mandatory! Your appointed experts can help you with the exact rate to pay. 

• Property buyers also pay the Title Deeds Fees for legally owning the property, which is around AED 500-600. It adds their names to the Ownership papers of the property. So, the Buyer Becomes the Owner of the property officially.

• Other few good-to-know fees involved are - Conveyance Fees, DEWA fees, Valuation fees, and Arrangement fees. 

We highly recommend getting a Sales and Purchase Agreement ready by a professional lawyer (with specialization in real estate) to read and review the terms. Neglecting to seek expert legal guidance at this stage can drag you to legal dangers most probably. Such vital documents are not to be dealt with on your own. If you are a lawyer yourself, then only avoid the service. 

This is an overall view of the entire legal mandates and phases to legally own a property anywhere in Dubai. Legal structure and the formalities specified for property transactions keep evolving in Dubai like anywhere worldwide. 

While we write a blog, we can let you know of what development has taken place in the past but not always of the recent ones. The reason being unless it is confirmed and implemented, one cannot write on it based on hearsay. It is essential for any property buyer (even sellers) to seek expert guidance for best decisions and plan of action for smooth property transactions in Dubai.  

You can seek our in-house legal expert help or opt for a private appointment of a real estate lawyer/attorney in Dubai.