Official cautions expats on risks of property deals

The move to allow expatriates to provisionally own land in designated areas was received with exuberance, but buyers must proceed with caution, warned a Land Department official.

If expatriate buyers are not fully aware of their limitations in purchasing property in Dubai, they are likely to lose vast amounts of money, said Sultan Butti Mejren, Assistant Director, Land Department.

The law gives UAE and other GCC nationals the liberty to buy and sell land in Dubai. It also permits nationals of other countries to provisionally possess property in projects of Emaar, Jumeirah Beach Residence and Palm Island.

The sale cannot take place if the land is a restricted donation, if the seller or buyer is unable to make the sale or purchase, or if there are legal hindrances. For example, if the land is attached, or the disposal of the land is prohibited.

Moreover, expatriates are not permitted to own any land that suits their fancy.

"Some people think they can buy any land they wish, if they strike an agreement with the owner, and pay the money. But when they come to register the land at the Land Department, they discover they made a mistake, and it is too late because they have already parted with the money," said Mejren.

All real estate and land sales are registered through the Land Department for a nominal fee. The Department collects 0.5 per cent from the seller and 1.5 per cent from the buyer.

The transaction is easily conducted after submitting the application and ensuring there are no obstacles to the sale.

"Recently, an Arab expatriate reached an agreement with a UAE national for a 99-year lease of a property. Later the UAE national came to the department to sell his land to another UAE national," said Mejren.

"The expatriate found out and called to alert us that he had reached an agreement and that property belonged to him for 99 years. We told him there was no such law allowing lease of property for 99 years and there was nothing we could do for him."

Mejren advised expatriate buyers to contact the department before entering into any agreement and dispensing cash in order to learn the parametres of the law.

He cited another case in which a Pakistani purchased land from a UAE national and built a house on it.

"He bought the land in Umm Suqueim, but did not ask us whether he was allowed to buy land in that area. When he came to register the property under his name, we told him it was impossible. The two parties are now trying to settle the matter out of court," said Mejren.

He also recalled a more high-profile case of an Indian who bought land in Al Ghusais.

"She paid the owner of the land a deposit of Dh500,000, and after a few months, she came to the department to register the land. We told her she could not. When she went to the owner to reclaim her money, he refused to comply.

"The owner says it is her fault, and she dilly-dallied, when she should have inquired about her rights with the department. The matter will probably go to court," he said.

Mejren urged all prospective buyers to avoid getting entangled in legal imbroglios and study their rights.

Since its establishment in 1960, the Land Department has gained the trust of UAE nationals by offering distinguished services and sound advice. The department is now keen on serving expatriate customers in the same manner.

The department has started issuing monthly newsletters in English, as well as Arabic, for customers who wish to remain abreast of land-related news.

Customers need simply subscribe via the website, and they will receive regular updates on market news.

Visit the website at: www.dubailand.gov.ae

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