When it comes to purchasing property, a person familiar with the terms used by real estate agents may feel overwhelmed. Buying apartments in Dubai can be a long process, but specialists from AX Capital will help you find the best. To understand tricky terms that are used by real estate agents here is our guide.
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Leasehold
Leasehold is limited in the time transfer of a property to ownership. This type of ownership of a property is kind of a lease for the long term because the contract usually lasts decades or even centuries. In the UAE the buyer-lessee get an almost unlimited set of rights. He is allowed to lease the property to third parties, redevelop and reconstruct it and even resell it.
Ejari
If you are going to rent an apartment in Dubai, you will have to use the Ejari system. It means “My rent” in Arabic. All the real estate agreements must be registered in the Ejari online system. This requirement is enshrined in article 4 of Dubai Law No. 33 of 2008. The system was launched in 2007. The lease agreements are considered invalid without the Ejari and in case of disputes, you will not even be able to go to court.
Usually, the duty to register the property in the system falls on the owner, but sometimes a tenant can do that too. There are several ways to complete the procedure:
- Using the mobile application of the Dubai Land Department
- Entering the website ejari.dubailand.gov.ae
- Coming to one of the certified print centres (you can find them in the malls)
The fees, though, must be paid by the tenant. The service fee using the application will cost you USD 47, in the printing centre USD 60.
You will need the following documents, to register:
- Original signed lease agreement
- Receipt of a security deposit by the tenant
- Passport, visa to the UAE and Emirates Tenant ID (for citizens of countries outside the Cooperation Council of the Arab States of the Persian Gulf)
- Copy of the passport of the lessor
- A copy of the valid power of attorney (if the contract was signed by a proxy)
- A copy of the document confirming the ownership of the leased premises
- 9-digit DEWA number
- DEWA account and the previous Ejari number if you extend the previously registered contract
- Trade license (when renting commercial real estate)
When entering the information in Ejari, make sure that you have entered all the information correctly, so that there will not be any possible problems for you in the future. The registration usually takes about one or two days to complete. After that, you will receive an Ejari certificate with a unique identification number. You will need to specify this number to register an account with the Dubai Electricity and Water Supply Authority DEWA (this can also be done online).
Makani
Makani is the official address system of Dubai. It means “My location” in Arabic. The Makani number is a ten-digit code assigned to each building in the emirate. It is attached to the facades of the malls, villas, towers and hospitals. These codes are used to indicate the location of any building using satellite navigation.
There is the official Makani app, which at first was developed exclusively for Dubai, but now is spreading to the other emirates. You can use this app in several different ways. First of all, you enter the address of the chosen place to learn the id code. Then, as if it is Google Maps, there are such functions are a guide to routes, voice control and location sharing with other users. There is also an emergency location notification system in the app. If you find yourself in a critical situation in an unknown place, the application will help determine your location and send a signal to the authorities, for example, the police.
Musataha
Musataha is a type of contract in the UAE, under the terms of which individuals can rent land for the construction of any real estate, even industrial enterprises. Such contracts are introduced to encourage people to invest and build buildings without buying the land itself.
The constructed objects are leased, and their term should not last longer than 50 years. These rights are regulated by articles 1353-1360 of the UAE Civil Code. Each emirate has its laws and regulations regarding the registration of Musataha. Although this type of contract is not common in free economic zones, the authorities of some FEZs, such as Tecom and Dubai World Central, have allowed the use of Musataha in the construction of the real estate.
Buying property in Dubai
Although purchasing real estate in Dubai may seem to be tricky, there are specialists who can always be by your side to assist. AX Capital will help you understand all the special terms and arrange the deal for you. Have a look at the website.
