Kashwani, a company registered in the Jebel Ali Free Economic Zone, continues to help our readers. Her professional dedication and the presence of a qualified team of experts allow her to provide any services to clients who want to open a business in Dubai or acquire property.
We decided to meet with the management of the company and ask him questions that most often come to the editorial office, dividing them into two parts. The first group of problems arises among investors at the stage of contract execution.
Sometimes a married couple, buying a property, draws it up for a wife. What could this be fraught with subsequently?
This purchase arrangement may complicate the issuance of visas to other family members. Indeed, according to the laws of the UAE, the sponsor is the husband; he also opens visas for his wife and children. But in general, the rights of such property are not much different from those that arise when the standard procedure is followed. An alternative option is to open an offshore company in the name of one of the spouses, for which then register the real estate.
It is very convenient to register ownership of offshore companies also because they are flexible mobile structures that are very effective from the point of view of doing business.
Is it possible to amend the contract for the purchase of real estate, which offers a realtor? Or is its form standard and not subject to change?
The contract offered by the developer to the buyer is based on property laws in the UAE. Of course, the details related to a particular project (construction delay, penalties for delayed payments, etc.), if interested, can be discussed; changes are made in such cases. But such large developers as Emaar, Nakheel and Damac, do not change their contracts when selling properties to private individuals. Such an opportunity is available only to investors who purchase a separate piece of land or a project.
If we talk about contracts with realtors, that is, intermediaries between the seller and the buyer, then, of course, such contracts are quite flexible and can be changed based on the wishes and requirements of the parties. It should be borne in mind that, regardless of intermediaries, a contract for ownership will come from the project owner. Therefore, it is necessary to carefully study the terms of the main contract and before the purchase, calmly discuss the possibility of making changes.
Is it possible to specify the maximum amount of maintenance fees when signing a contract?Yes you can; usually this clause is included in contracts. At the same time, all companies stipulate a certain period during which this rate will not change. In the future, if the developer raises the cost, the residents of the building or cottage village have the right to disagree with the said amount and independently choose another company that will service their facility.
The law on the sale of real estate to foreigners has not yet been signed, and transactions are executed on the basis of decrees of the leadership of each particular emirate. Do these decrees differ - and if so, in which principality are the best conditions for investing money?
The Freehold Act (from English freehold - free ownership) is expected from day to day. So far, the sale is conducted according to the rules, which in each of the emirates are really their own. The laws of Dubai seem to me the most reliable and profitable: here all contracts are executed on behalf of companies that have received a state license to sell property to foreigners. In Ajman, objects are bought directly from the government; at the same time you get the right to property and pay 3% tax to the treasury. In Sharjah, this right is granted for 99 years. If during this time the owner resells or redistributes this object, the new contract is again drawn up for 99 years. Regarding the emirates of Fujairah and Ras al-Khaimah, one cannot speak about the current system of selling real estate to foreigners.
The second group of problems arises for our readers after the signing of the contract. We decided that such issues also deserve attention.
How soon after buying a property can its owner get a resident visa? Does the procedure and the timing of its receipt differ from different developers (Emaar, Nakheel, etc.)? What problems may arise with the owner and his family members? And how can you avoid them?
Visas are received in a standard manner through the Department of Immigration and Naturalization. As a rule, the procedure takes from 7 to 14 days. Visas are issued immediately upon the readiness of the project and its registration in ownership; problems with their receipt usually does not arise. If the buyer is a married couple, it is more convenient to register the property for husband and wife at the same time so that they receive visas on an equal footing. If only the husband is the owner, then the visa process takes a longer time. First, the visa will be done on the owner; further, he will have to provide legalized certificates of marriage and the birth of children. Based on these documents, a visa will be opened for family members.
Is the property owner, like other residents, obliged to visit the UAE at least once every six months to maintain his visa?Yes. Until the Freehold Act has been signed, the requirements and rules for the visa regime for property owners remain the same as for all other residents. After 6 months, the visa becomes invalid. Its updating requires a limited expenditure of time and money.
What can result in a delay in payment?Typically, such situations (the system of charging fines or termination of the contract) are specified in the contract. Much depends on what kind of payment a person delays or refuses to make. The farther he is from the first and second, the greater the likelihood of finding a way that suits both parties and compensating for at least part of the money already paid.
How can I rent a purchased property? Is it possible to do this for a short time - for three months, for six months? Can the owner draw up a lease, or for this you need to resort to the services of realtors?It is possible to lease for a short time. The tenant, of course, will persuade you to do without realtors who will take from him a percentage of the transaction and a safety deposit. Nevertheless, we recommend that you not succumb to these persuasions and protect yourself from possible troubles.
Does the organization serving the apartment house have the right to open a private apartment in the absence of the owner? This may be necessary to eliminate the accident in the plumbing or electrical network. Is it necessary (and is it possible) to give any instructions to the service organization in this case?
In order not to return once to the sealed door, try to stay in touch wherever you go. In some houses, it is possible to store the key to the apartment in the safe of the security guard, having previously issued a number of papers confirming that the apartment has no valuables. Another option is to find through a real estate company a person who will look after the apartment in your absence.
If you still have questions, contact Kashwani Law Firm for advice.
Tel .: (04) 352 8887.
Fax: (04) 352 5330.
Email: [email protected]
Our website: www.kaswanilaw.com
