UAE Real Estate — freehold, JOPOA, off-plan, RDC, foreign ownership

UAE and GCC nationals may own freehold anywhere in Dubai. Non-GCC foreign nationals (and foreign-owned companies) may own freehold, leasehold up to 99 years, or usufruct only inside areas designated by the Ruler. The Ruler's designated-area list (Regulation 3 of 2006, issued under Article 4 of Law 7 of 2006) is the operative instrument; outside it, foreign freehold is not registrable.

Cross-reference: Dubai uses a designated-area list under Regulation 3/2006 issued under Law 7/2006. Most prominent freehold areas are Downtown, Marina, Palm Jumeirah, JBR, Business Bay, Dubai Hills, Arabian Ranches, JVC and Damac Hills. Outside the list, foreign freehold cannot be registered.

Four registrable rights under Law 7/2006: freehold (full ownership in perpetuity); usufruct (right to use and enjoy another's property, up to 99 years); musataha (right to build on another's land and own the building, up to 50 years renewable); and long leasehold (typically 30-99 years). Mortgages and pre-emption rights are also registrable real rights.

Off-plan units are sold under a Sale and Purchase Agreement (SPA), pre-registered on the Interim Real Estate Register (Oqood) under Law 13 of 2008, with all purchaser instalments paid into a project escrow account regulated by Law 8 of 2007. The developer must be registered with RERA, the project must be registered with the DLD, and the developer must own the land (or hold a registered musataha) before any sales begin.

The developer opens a project-specific escrow account at a RERA-accredited bank (Article 5). All purchaser instalments and project receivables flow only into that account. Withdrawals are only permitted to fund construction expenses for that project, against (i) a withdrawal request signed by the developer; (ii) certification from a RERA-appointed engineering consultant of construction stage reached; and (iii) RERA approval. 5% of the total construction cost is retained until one year after handover (the "retention").

The Interim Real Estate Register (commonly called "Oqood") was created by Law 13 of 2008 as a pre-completion register at the DLD. Every off-plan SPA must be registered on it. An SPA not registered on Oqood is, under Article 3, void as against any third party. On handover, the entry transfers automatically to the main Real Property Register and a freehold title deed (or usufruct/musataha certificate) issues.

Decree 6 of 2010 governs cancellation. RERA may cancel a project on stated grounds (developer insolvency, persistent missed milestones, fraud, force-majeure abandonment). On cancellation, the Real Estate Cancellation Tribunal (a special judicial committee within Dubai Courts under Decree 33/2020) takes jurisdiction over purchaser claims, supervises return of escrow balances, and issues binding orders against the developer. Refunds are paid pro rata from escrow.

Law 6 of 2019 on Joint Ownership of Real Property in the Emirate of Dubai replaced Law 27 of 2007. Headline changes: (i) developer must register a Jointly Owned Property Declaration (JOPD) with DLD before unit sales; (ii) common areas pass to unit owners on first sale; (iii) the building is administered by a court-licensed Owners Association management company under DLD oversight (no longer by an autonomous owners association as under Law 27/2007); (iv) the Joint Owners Committee replaces the prior owners-association — it is advisory; (v) service charges are approved by RERA against an audited budget; (vi) developer is responsible for structural defects for 10 years and equipment defects for 1 year from handover.

Cross-reference: see Q8. Dubai moved away from the autonomous Owners Association under Law 27/2007 to a DLD-licensed management-company model under Law 6/2019. The Joint Owners Committee retained from Law 27 is now advisory only.

Title transfer is registered at the DLD. The standard process: (i) Form F (memorandum of understanding) signed; (ii) NOC issued by the developer; (iii) Trustee Office appointment; (iv) transfer fee (4% of purchase price, traditionally split 2/2 between buyer and seller) paid; (v) title deed issues in the new owner's name on the same day. The DLD's Real Property Register is the conclusive evidence of title (Law 7/2006 Articles 9-13).

Standardised RERA broker forms govern every Dubai real-estate transaction: Form A — broker-seller listing agreement; Form B — broker-buyer engagement; Form F — the Memorandum of Understanding between buyer and seller; Form I — seller-broker listing for tenancy; Form U — cancellation/termination of broker engagement. Use of the standard forms is mandatory; deviation is a regulatory breach.

Every broker must hold a RERA broker card (issued through the Trakheesi system, valid 12 months). Pre-requisites: broker training (Dubai Real Estate Institute certification), clean criminal record, valid Dubai trade licence for the brokerage firm, professional indemnity insurance. Practising without a card is an offence punishable by fine and ban; the brokerage firm is jointly liable.

Tenancy contracts are governed by Law 26 of 2007 (as amended by Law 33 of 2008). Every tenancy must be registered on Ejari (the DLD's tenancy registration system) — registration is procedurally mandatory and a pre-condition to filing in the RDC. Ejari issues a unique number that ties the tenancy to DEWA, telecoms, trade-licence applications and visa filings. Standard term: one year, renewable.

Cross-reference: Dubai uses Ejari + RDC. RDC was established under Decree 26 of 2013 with exclusive jurisdiction over rental disputes. First-instance hearings within 30-45 days; appeal to the RDC Appeal Tribunal (claims above AED 100,000 or eviction).

Two regimes under Law 26/2007 as amended. For-cause eviction (Article 25(1)) — non-payment, breach, illegal use, sub-let without consent: typically 30 days written notice, then RDC application. No-cause eviction (Article 25(2)) — only on four exhaustive grounds (owner self-occupation, sale of unit, demolition/major refurbishment, owner's first-degree relative occupation), and only on 12 months' notarised written notice served via notary or registered mail. The 12-month rule cannot be contracted out.

Decree 43 of 2013 sets the cap on annual rent increases. The increase a landlord can demand at renewal depends on how far below market the current rent sits, per the RERA Rental Index (a free public calculator on the DLD website): up to 10% below index = no increase; 11-20% below = 5%; 21-30% below = 10%; 31-40% below = 15%; more than 40% below = 20%. Notice of any increase must be served at least 90 days before renewal.

Mortgages are registered at the DLD against the property's title under Law 7/2006. Registration fee: 0.25% of the loan amount (capped). Enforcement on default: lender serves a 30-day notice; if unpaid, files an enforcement application before the Dubai Courts Execution Department; the property is sold by court-supervised public auction; surplus over outstanding debt + costs returns to the borrower. Self-help repossession is not lawful.

Service charges are set by the management company against an annual budget audited by an independent auditor and approved by RERA (Mollak system). Owners receive an invoice through Mollak; non-payment triggers a procedure before the RDC. The OA management company can register a charge against a unit and ultimately petition for sale to recover unpaid service charges. Service-charge rates are published by RERA on the Mollak public portal.

Three-track structure. Tenancy disputes → RDC (Decree 26/2013), exclusive jurisdiction. Off-plan / cancellation → Real Estate Cancellation Tribunal (Decree 33/2020) for cancelled-project claims; otherwise Dubai Courts commercial circuit. Title, mortgage, broker, JOPOA, all other → Dubai Courts of First Instance (specialised Real Estate Circuit). Choice of forum is jurisdictional and not at the parties' election.

Non-resident foreign nationals can obtain UAE bank mortgages on Dubai freehold subject to CBUAE Mortgage Regulations 2013 (loan-to-value cap: 50% for non-residents on first property; 40% on subsequent properties; 50-80% for residents depending on price band). Maximum tenure: 25 years. Borrower must be under 70 (salaried) or 75 (self-employed) at maturity. UAE banks lend against verified offshore income, but income-multiple caps apply.

VAT (Federal Decree-Law 8/2017): residential first-supply zero-rated; subsequent residential supplies exempt; commercial real-estate supplies 5% VAT. Land sales VAT-exempt. DLD registration fee on transfer: 4% of price (typically 2% buyer / 2% seller). Trustee Office service fee: AED 2,000-4,000. Mortgage registration fee: 0.25% of loan amount.

Federal Decree-Law 47/2022 imposes 9% corporate tax on taxable income above AED 375,000 from 2024 (15% Domestic Minimum Top-up Tax for in-scope MNEs from 2025). Real-estate-relevant carve-outs: natural-person investors holding property for personal investment generally fall outside CT (Cabinet Decision 49/2023); investment funds may qualify as Qualifying Investment Funds; REITs may qualify under specific conditions; rental income earned by individuals is generally not subject to CT, but real-estate development carried on as a business activity is.

Federal Decree-Law 41 of 2022 (Personal Status Law for Non-Muslims) gives non-Muslims a default civil-law succession framework: spouse + children take in default shares, with full freedom to write a will. A non-Muslim may register a will at the DIFC Wills Service Centre — covering Dubai and Ras Al Khaimah real estate — and the will takes priority over Sharia default rules. Wills must be registered before death; post-death registration is not possible.

RERA (an arm of the DLD) holds: (i) investigative powers — inspections, document production from licensees; (ii) administrative penalties — fines up to AED 1m+ depending on breach; (iii) licence revocation — broker card suspension, developer registration cancellation; (iv) project cancellation under Decree 6/2010; (v) referral to public prosecution for fraud or breach of trust. RERA decisions can be appealed to the Cancellation Tribunal or ordinary Dubai Courts depending on the decision type.

Public verification channels: Dubai REST (DLD app) — title-deed verification, broker licence check, project status, Mollak service-charge balance. Trakheesi portal — broker card validity, brokerage licence. Mollak — service-charge accounts. RERA Project Status Inquiry — escrow status, completion percentage. Title deeds are forgery-resistant (digital with QR code) and verifiable on the Dubai REST app.