Buying Property in Dubai

In recent years Dubai has become a well-known real estate destination for Israelis: apartments as an investment, a second home, or a base for business in the region. Marketing campaigns, sales tours and agents talk mostly about yield and lifestyle, and less about the legal question: what exactly are you buying, from whom, and what arrangements protect your money. This guide explains, from the Israeli side, what is worth checking before you sign and which stages to know in advance.

One point first: local law governs the transaction itself, so every step should be checked with a local lawyer licensed to practise in Dubai. An Israeli lawyer accompanies you on the Israeli side of the process, coordinates with your local lawyer and makes sure your documents are ready, but does not replace local advice.

First: can you buy this property at all

In Dubai, as elsewhere in the United Arab Emirates, foreigners cannot acquire ownership in every area. Certain areas are designated for this purpose, so the first question is what type of ownership is involved and in which area the property sits. Ask your local lawyer to confirm in writing:

• That the property is in an area where foreign buyers can be registered as owners.
• What type of right you are buying: full ownership, or a right for a limited period.
• What ongoing costs attach to the property, such as service charges for the building or project.

Do not rely on a marketing presentation of the property. The check is made against official records, not promotional material.

First: a lawyer who acts for you

In cross-border deals it is common for the seller, developer or agent to suggest "a lawyer we work with". That is not wrong in itself, but the person representing you should act for you alone without any dependence on the deal closing. Ask in advance:

• Who pays the lawyer, and what exactly is included: checks, drafting or reviewing the contract, attending the signing, and transfer of ownership.
• Which languages the lawyer works in, and how they will report to you on the main commercial terms of the deal.
• What additional costs to expect. It is advisable to get a written, up-to-date breakdown before committing.

Checking the property before any payment

Before paying a deposit, your local lawyer should check the legal status of the property. Common checks include:

1. Ownership and registration. Is the seller the registered owner, and is the property registered in the relevant official register?
2. Encumbrances and debts. Is there a mortgage or third-party rights, and are there debts to management bodies or utility providers?
3. Permits and building status. Was the property built lawfully and does it match what is presented to you?
4. Contract terms. What happens in case of delay, cancellation or breach by either side, and what remedies are available to you?
5. Restrictions on future transfer. Are there limits on resale or rental later on?

The aim is not to alarm you but to make sure you know what you are buying and what the stages are, before you commit.

Off-plan: what to find out

A large share of sales in Dubai are of apartments in projects still under construction. As with buying from a developer in Israel, there are questions worth asking before signing:

• Is the project registered with the relevant local authorities, and how are your payments protected? In such projects it is common for buyers' funds to be held in a dedicated escrow account. Verify this in writing and do not settle for an oral assurance.
• When is delivery expected, what does the contract say about delay, and what is the binding specification?
• What is the payment schedule, and what happens to the money you paid if the project is delayed or stopped?
• Who is responsible for completing the registration of your rights when construction ends?

A contract pushed through under pressure ("the offer ends today") is a sign to stop and check, not to sign faster.

The usual stages of a deal

The exact structure varies, but the process generally looks like this:

• Preliminary checks by the local lawyer, before any financial commitment.
• Initial sale agreement. A document setting the price, payment dates and conditions. Read it before signing and do not assume it is "just a form".
• Payment and registration. Transfer of ownership is carried out before the competent local authority, and your local lawyer will explain the steps and the documents required.
• Fees and costs. Rates and costs change over time. Do not rely on general tables online or on what the seller tells you; obtain a written, up-to-date breakdown from your local lawyer.

Notarial power of attorney and apostille

If you cannot attend the signing, you can appoint a representative to sign for you. The usual route is a notarial power of attorney, and from the Israeli side the process generally looks like this:

1. The power of attorney is drafted in the language and form that meet the local requirements, in coordination with the lawyer there.
2. A notary in Israel verifies your identity and signature.
3. The document goes through the procedure needed for recognition in the destination country, usually an apostille or other legalisation. The rules between countries change, so check with your local lawyer which procedure applies at the time of signing, and whether a translation is also required.

A common mistake is signing a power of attorney that is too broad. It is better to define precisely what the attorney may do, in relation to which property, and until when.

The Israeli side: reporting and tax

Buying property abroad is not only a local matter. As an Israeli resident you may have obligations in Israel, such as reporting assets and income from abroad, depending on Israeli law and your circumstances. Rental income, or a gain on a future sale, may be taxable in Israel, among other consequences, while local law will determine what applies in the country itself. Do not assume everything "sorts itself out". Speak to an accountant or tax adviser who knows both systems before the purchase, not after.

Financing and moving the money

In large transactions, banks in Israel and abroad ask for explanations of the source of funds. Keep documentation of the source of the capital and of every transfer. Transfer money only to an account approved in advance and in writing by your own lawyer, not according to instructions received in a message or a phone call. If you are considering local financing, find out in advance whether the bank lends to non-residents and on what terms.

Inheritance and planning ahead

Property abroad is also an asset for inheritance purposes. Proceedings may be required in both countries, together with an examination of local and Israeli law. It is worth planning this at the time of purchase. The Israeli background appears in the article How to write a will in Israel, and for property abroad it is advisable to consult a local lawyer as well.

Common mistakes when entering a deal

• Paying a deposit before checking the property and the seller.
• Relying on a lawyer or agent acting for the seller.
• Signing a contract under time pressure.
• Signing a power of attorney that is too broad.
• Transferring money to an account that was not verified in advance.
• Ignoring the Israeli side: reporting, tax and inheritance planning.

In summary

A purchase in Dubai is best handled with the right checks, representation by a local lawyer acting for the buyer, and orderly preparation of your documents in Israel. General principles for deals abroad also appear on the International Law page, and for example you can read our guides on buying an apartment in Cyprus and buying property in Greece. If you are considering such a purchase, you can contact us for representation on the Israeli side of the deal, including a notarial power of attorney, apostille and coordination with a local lawyer.

The information in this article is general, is not legal advice, and does not replace a review of local law with a lawyer in the country.