The only organization that is authorized by law to register and record all real estate transactions is the Dubai Land Department. This is accomplished via an electronic system (e-register) created specifically for this function, in accordance with the DLD's unique procedures, and based on certain papers and documents. Real estate developers keep track of their transactions using a system of self-registration. The remaining transactions must be carried out by the owner(s) or their authorized agents at the Real Estate Registration Trustee centers, which are dispersed around Dubai.
Real estate residencies fall into two categories: three-year residencies on properties worth at least AED 750,000 and five-year residencies on properties worth more than AED 5 million.
In order to protect investors' rights, Dubai's real estate laws emphasize the importance of recording all real estate transactions, including ownership, transfer, and change with or without compensation. Any real estate transaction that is not recorded in the registers maintained by DLD is deemed invalid.
Initial registration means registering real estate sales contracts and other legal actions off-plan before transferring them to the real estate registry, and it includes properties purchased off-plan or ready-made properties for which an initial sale certificate is issued indicating the registration of a property. This aims to preserve the rights of owners and investors.
In case the area of the property exceeds the area agreed upon in the sale contract, the increase of the unit net area shall not be considered, and the developer shall not claim the value of such increase, unless otherwise expressly agreed in the sale contract. In case the area of the property is less than the area agreed upon in the sale contract, the developer is obliged to compensate the purchaser for the change in the area of the real estate unit due to the decrease that exceeds (5%) of the net area of the unit.
In accordance with the laws and regulations enforced in Dubai, any property or real estate unit can be mortgaged as debt security, according to the following conditions: • The property is registered in Dubai Land Department. • The mortgaged property or real estate unit must be established and has an existing insurance mortgage or verdict on the map at the time of the mortgage. • The insurance mortgage may be made only on a property or real estate unit that is valid to transact.
