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	What is the difference between freehold and leasehold?

		Until now there is no legislation regarding the Real Estate, We are waiting a legislation that shall hopefully provide us with the basis of Real Estate legislation for Dubai Emirate. In a major boost to Dubai's property market, the concept of freehold properties was introduced in the city of Dubai for the first time in any Gulf country. "Freehold" became the buzz word in May 2002 when H.H. General Sheikh Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and U.A.E. Defense Minister, announced that 100% freehold ownership of certain properties in Dubai was available to all nationalities.

	What is a Freehold Property?

		A freeholder is considered to be the absolute owner of the land or building comprised in his title. He has the right to occupy, use, transfer his property and his heirs have a right to inherit his title upon his or her death. However, the owner must abide by governmental rules and regulations that apply to the area where his/her property is situated. The freeholder has the right to occupy, use and enjoy his property forever "in perpetuity". But the freeholder must comply with all applicable laws which combine to control the use of and activities upon his property, for example the use of the land, the erection of new building on land is subject to governmental approval procedures and also environmental and non-nuisance laws.

	What is a Leasehold Property?

		A lease hold Title is created from a freehold Title. The main difference between the freehold and leasehold is that the former is perpetual, whereas the latter is restricted to a term lease or a 99 years lease. The rent may be payable in installments at regular intervals throughout the lease term, or may be payable by way of a single lump sum payment at the commencement of the lease.

	Can the foreigners buy lands in Dubai?

		Yes, According to Dubai Land Department's regulations the foreigners can buy lands in Dubai through certain Developers like EMAAR, Nakheel and Jumeirah Projects.

	Are there any taxation issues a foreign buyer of property in Dubai needs to be aware of when buying a freehold property in Dubai?

		The only tax payable on the transfer of property into the name of the new buyer is a fee payable to land department. The land department usually collects 0.5 % of the purchase price from the seller and 1.5 % from the buyer.

	What sort of visa will a property investor receive?

		Some developer give The freeholder a residency visa to reside in Dubai but not to work, this visa subject to all laws and regulations set out by the Ministry of Interior, Department of Residency and Naturalization. This visa benefit is only for husband, wife and immediate children below 18 years of age.

	What are the procedures of title transfer?

		On payment of the 2% fee, the Disposal Section of the Land Department will transfer ownership and issue the new Title Deed on submission of the following documents: 1. Application letter signed by the parties specifying their particulars, property details, sale date and purchase price. 2. Existing Title Dead. 3. Location Plan. 4. Seller's passport or nationality certificate. 5. Full details of the buyer.

	If I buy property, will be able to reside permanently in Dubai?

		Nothing in the laws of the United Arab Emirates provides that an owner of a property in Dubai will be entitled to permanent residency.

	Can I get financing for the purchase of my property?

		Yes, there are various banks offering financing for properties. See more in this section.

	Will I have to pay tax if I sell my property in Dubai for a profit?

		UAE government doesn't levy any capital gains or personal income tax in UAE and there are no restrictions/exchange controls on repatriating funds from UAE. At the present, a transfer fee equivalent to 2% of the purchase price to the developer.

	What does it mean mortgage?

		A mortgage is a loan to buy or build a house. You get the loan and take the possession of the property, and the house itself acts as collateral until the mortgage loan is fully paid. You have to pay an interest on the money you borrow. The amount you can borrow will depend on your income and the price of the property you want to buy. When you take out a mortgage you will be required to make a down payment and this too affects the size of your monthly repayments. You will choose the best kind of mortgage for your investment, you can choose a home builder loan, home builder, flexible rent to own and fixed lease to own.

	What are the general financing documents?

		1. Completed application form. 2. Copy of valid passport and valid residence visa. 3. Original salary certificate 4. Bank statement for the last 6 months. 5. Details of the property. 6. Post-dated cheques. 7. Original sale agreement. 8. Proof of down payment made to the developer. If you are self employed, these additional documents are required. 1. Copy of trade license. 2. Audited financial statement for the last 2 years. 3. Copy of chamber of commerce registration 4. Memorandum/ articles of association.

	What are the mortgage registration procedures?

		The Land Department will register mortgages in favor of accredited banks or UAE nationals. The Land Department will not register a mortgage over the property in the following cases: 1. If the mortgagor is a minor, unless the permission of the public prosecutor has been obtained. 2. If the mortgagee bank is not licensed to operate in UAE. 3. If the land is attached by court order. The mortgage can be redeemed at any time by letter from the mortgagee indicating that the mortgage loan is satisfied, the mortgage can also be transferred from one party to another.

	What are the Islamic Financing Techniques? 123

		Murabaha A 'Murabaha' is essentially a re-sale contract, where the 'buyer' identifies the property he/she wishes to purchase and agrees upon a price with the vendor. Once the purchase of the property has been approved by the 'financier', the 'financier' will purchase the property in its name and resell it to the 'buyer' against either immediate or deferred payment. The 'financier' is entitled to profit, which is the difference between the price it pays to the vendor, and the price at which it re-sells to the 'buyer'. Financiers product uses the Murabaha mode of Islamic financing for sale on deferred payment / installment payment terms. Ijarah The term 'Ijarah' means 'to give something on rent' or to transfer the 'right to use' of a property to another individual in exchange for rent claimed from him/her. 'Ijarah' is like a conventional operating lease, where the 'buyer' identifies the property he/she wishes to purchase and agrees upon a price with the vendor. Once the purchase of the property has been approved by the 'financier', the 'financier' will purchase the property in its name and lease it to the 'buyer' for a specified monthly (or otherwise) rental payment and lease term. At the end of the leasing term, the financier promises to transfer the title of the property to the customer, once all repayments have been made as per the agreement. 'Flexi Rent to Own' and 'Fixed Lease to Own' are types of Ijarah contracts. Istisna'a 'Istisna'a' mortgages are financial products widely used by Islamic banks to finance the construction of buildings and/or industrial assets. Under Istisna'a, the price is fixed with the consent of the parties and the specification of the house or building to be constructed, is fully agreed upon. If the customer has his/her own land and he/she seeks financing for the construction of a house, the financier may undertake to construct the house on that open land, on the basis of 'Istisna'a'. If, however, the customer has no land and wants to purchase the land, the financier may undertake to provide him/her a constructed house on a specified piece of land.

	What is the financing process?

		1. Choose the financing option that is best suited to your needs 2. Fill in and submit the application form (with the required documents) to financier 3. We will contact you if your documents are incomplete At this stage, your application will be reviewed by financier After all your documents are complete, financier promises to provide you with a decision within 5 working days. Once your application for financing is accepted (subject to approval by financier), a facility offer letter is sent to you outlining terms such as the finance amount, tenure, profit rates and charges - Sign and return your facility offer letter to financier to confirm your acceptance - Complete your disbursal documents - Provide financier with the installment cheques - You and a financier signatory will be required to jointly sign the financing agreement

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	Are joint owners of Dubai properties legible for residency visas?

		In case of joint owners it is accepted that only the first named owner will be eligible for sponsorship. However the first named owner would normally be able to sponsor his/her dependants. Unmarried daughters would normally be considered dependants of their father regardless of their age. However sons are usually required to be below the age of 18 years in order to be classified as dependant. A husband may also sponsor his wife.

	Can the tenant raise bank finance to purchase a long term lease?

		- A bank can conclude a conditional assignment of the lease with the tenant and if defaults in his obligations the bank is able to call for an assignment of the lease into its own name. - A bank can enter the lease as tenant and grant a sub lease of the property to the tenant.

	What happens to the lease if the landlord sells the property?

		The sale of the property by a landlord doesn't affect the rights of a tenant pursuant to a lease and purchase of the property must recognize the tenant's right "according to UAE Civil Code".

	What the tenant obligations?

		1. Service charges. 2. Permitted use of the property. 3. Observance of development rules and regulations.