Be smart in buying freehold property

Buying freeholdImage Credit: Supplied

People tend to save for a car; however, a prudent individual aspires to buy a property, considered one of the most valuable assets of a lifetime.

Previously, only UAE and GCC nationals could own a property in the country, leaving expats with the option of leasing a unit. When a decree allowing expats to purchase properties on freehold basis was issued, the real estate market in Dubai began to lure massive investments. At present, foreign nationals may also acquire a property in the capital on freehold basis.

Investors purchasing freehold property are advised to be vigilant. You must ensure that you deal with a reputable developer and a RERA certified agent to avoid headaches in terms of the purchasing process, preparing documents, registration procedures and other related concerns. RERA-certified agents are able to advise you on the perfect locations and stable neighborhoods. They also have knowledge of the laws and procedures concerning property ownership.

You can also check the RERA website to ascertain whether the project and the developer are duly licensed, and whether the developer has an existing escrow account in the case of off-plan properties. Remember that any payment should be done through a RERA-approved escrow account. The property should also be registered with the Dubai Land Department (DLD).

Whether you are buying an off-plan or finished property, it is essential to scrutinize important details such as property size, financing, payments and others. Analyze your financial situation and avail of the convenient payment structure if paying in full proves too heavy on the wallet.

You should also be careful with the terms and conditions written in the contract. If possible, employ the services of a lawyer to help you understand the legalities involved in purchasing a property.

Handy Hints
• Approach a RERA-certified agent to avoid hassles and headaches
• When buying off-plan unit, ensure developer has escrow account
• Hire a lawyer to explain the legalities involved in buying property

Source: Alfred Ocianas, Special to Properties
The writer is a freelancer


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