Dubai Property Transfer Process: Contract and Transactions

Dubai has expanded its real estate market attracting investors from across the globe. With the rapidly evolving real estate market, the real estate market has become highly competitive. Generating high revenues has become incredibly difficult. Due to economic growth, strategic developments and high demand for luxurious properties, this market will expand in the upcoming years. 

Importance of Understanding Property Transfer Process in Dubai

Dubai’s legal proceedings are among the strictest in the world, making it essential for property investors to understand them thoroughly to succeed and capture opportunities in the market. With its strong legislative framework governing property transfer rights, Dubai remains an ideal location for real estate investment. Navigating this landscape, however, requires the right expertise — and that’s where Jaxtox Real Estate can help you. Our experienced team ensures that your property transactions are seamless, compliant, and strategically positioned for long-term success.

Types of Property Ownerships in Dubai

In Dubai, there are mainly two types of property ownership: freehold and leasehold. Each one of them comes with its own rules and benefits. Understanding the difference is important before you buy or transfer a property.

Freehold Ownership

Freehold ownership means you fully own the property and the land it’s built on. You can sell it, lease it out, or pass it on to your heirs. This type of ownership is available to both UAE nationals and foreign investors. However, it is only available in the designated freehold zones. These include:

• Downtown Dubai
• Dubai Marina
• Palm Jumeirah

To learn more about freehold areas, check this official list by Dubai Land Department (DLD).

Leasehold Ownership

Leasehold means you’re leasing the property from the landowner for a long period. Usually, this period ranges from 10 to 99 years. While you can use the property and rent it out, the land still belongs to the freeholder. At the end of the lease term, the ownership returns to the freeholder. Leasehold properties are usually found in areas like:

• Dubai Silicon Oasis
• Jumeirah

For an official explanation of leasehold terms and tenant rights, refer to the Dubai Tenancy Law Guide.

Different Types of Property Transfers in Dubai

There are several types of property transfers in Dubai. All of these types depend on the nature of the transaction that is carried out during the process:

Sale Transfer

Sale transfer is the most common type of property transfer in Dubai. The property ownership is transferred from the seller to the buyer after the payment.

Inheritance Transfer

Inheritance transfer occurs when a property is transferred to a legal heir in the event of the owner’s death. This process requires a court order and relevant documentation.

Gift Transfer

A gift transfer allows property owners to transfer ownership to family members as a gift. During the gift transfer, generally, payment of a 2% gift fee to the DLD is required.

Corporate Transfer

Corporate transfer involves transferring property ownership to a company or legal entity. It requires additional documentation and approvals.

Legal Documents Required for Property Transfer in Dubai

Before initiating the transfer process, the buyer and seller must gather specific documents. Here’s a breakdown of the documents required:

For the Seller

• Original Title Deed
• Valid Emirates ID
• Passport Copy
• NOC (No Objection Certificate) from the property developer

For the Buyer

• Valid Emirates ID
• Passport Copy
• Mortgage Pre-Approval (if applicable)

Step-by-Step Process for Property Transfer

1. Initial Agreement Between Buyer and Seller

The process begins with the buyer and seller agreeing on the terms of the sale. A Memorandum of Understanding (MOU) is drafted to outline these terms. After that, both parties sign the MOU. Generally, the amount of the 10% iof the property value is deposited in this step.

2. No Objection Certificate (NOC)

The next step is obtaining the NOC for the property being transferred. The seller must obtain an NOC from the developer. This confirms that the property is free from liabilities and can be transferred.

3. Property Valuation

During this step, the current market value of the discussed property is determined. All the parties get to know the fair market prices so that they are on the same table.

4. Transfer at the Dubai Land Department

Both parties visit the Dubai Land Department (or relevant authority) to complete the transfer. They submit the required documents by the DLD which include, the original title deed, Emirates IDs and passports of both parties, and the Signed NOC. The buyer pays the purchase price, transfer fees and other applicable charges.

5. Issuance of New Title Deed

Upon completing the transfer, the land department issues a new title deed in the buyer’s name. The buyer now officially becomes the new owner of the property and registers their name with the Dubai Land Department.

Key Legal Considerations

1. Transfer Fees

The buyer typically pays the transfer fees, a percentage of the property value (commonly 4% in Dubai).

2. Mortgaged Properties

If the property is mortgaged, additional steps are required to settle the outstanding loan before transfer.

3. Foreign Ownership Restrictions

Non-UAE nationals can only purchase property in designated freehold areas.

Costs Involved in Transferring Property Ownership in Dubai

When transferring property ownership, several costs need to be considered:

• Dubai Land Department (DLD) Transfer Fee: 4% of the property value
• Admin Fees: AED 2,000 to AED 4,000 (depending on the property value)
• NOC Fee: Ranges from AED 500 to AED 5,000 (depending on the property developer)
• Real Estate Agent Commission: Generally 2% of the sale price
• Mortgage Registration Fee (if applicable): 0.25% of the loan amount

Role of Real Estate and Construction Lawyers

Dubai’s Real Estate and Construction Lawyers are important in facilitating smooth property transactions. Their expertise encompasses:

• Drafting and reviewing MOUs and sales agreements.
• Verifying property ownership and legal status.
• Handling disputes or irregularities during the transfer process.
• Ensuring compliance with UAE real estate laws.

Whether you’re buying, selling, or transferring ownership, Jaxtox simplifies the process by connecting you with experienced legal professionals and handling the paperwork, approvals, and compliance from start to finish. With Jaxtox, any kind of property transfer becomes smooth, secure, and stress-free.

Property Transfer to and From Foreigners in Dubai

Who Qualifies as a Foreign Buyer or Seller?

Foreigners, including expatriates living in the UAE and international investors, are allowed to buy, sell, and transfer properties in designated freehold areas only. These areas include popular communities like Dubai Marina, Palm Jumeirah, Downtown Dubai, and Jumeirah Village Circle (JVC). A full list of eligible zones is provided by the Dubai Land Department.

Step-by-Step Procedure for Foreign Property Transfers

1. Confirm Freehold Eligibility

Before initiating the transfer, it’s essential to confirm that the property is located within a freehold area, as foreigners are restricted from owning property in non-designated zones.

2. Prepare Required Documentation

Foreign buyers and sellers must prepare:

• Passport copy (with visa page if residing in the UAE)
  
• Valid Emirates ID (for UAE residents)
  
• Proof of funds or mortgage pre-approval
  
• Power of Attorney (if appointing a representative)
  

These documents will be used throughout the transfer process with the Dubai Land Department (DLD).

3. Complete the Transfer at DLD

Foreigners must complete the ownership transfer by visiting a DLD service center or using a legal representative. The transfer includes submitting required documents, obtaining the No Objection Certificate (NOC) from the developer, and paying applicable fees:

• 4% DLD Transfer Fee
  
• Admin and processing fees
  
• Real estate agent commission, if involved

For digital convenience, the process can also be carried out using Dubai REST App or DLD Smart Services, especially useful for remote buyers.

Taxation and Fund Repatriation for Foreigners

Dubai offers a favorable investment climate for foreigners. There is no property tax or capital gains tax on property transactions. However, funds involved in property deals must comply with the UAE’s Anti-Money Laundering (AML) regulations. High-value transactions may require verification of the source of funds.

For legal compliance and updates, refer to the UAE Anti-Money Laundering Law provided by the Ministry of Economy.

Legal Representation and Remote Transfers

If a foreign party cannot be physically present, a registered representative can be assigned using a notarized Power of Attorney. This is particularly useful for overseas investors or sellers managing properties remotely.

Remote transactions are also facilitated via the Dubai REST mobile app and DLD Smart Portal, allowing digital document uploads and online payments.