Despite its indispensable role in ensuring the security and legality of property transactions, conveyancing is often undervalued by many real estate investors.
This article aims to underscore the importance of engaging a professional lawyer from the onset of your property transaction. Here, we delve into the intricacies of conveyancing in the UAE, exploring its significance, the costs involved, and what both buyers and sellers can expect during the transaction process.
What is Conveyancing?
Conveyancing encompasses the legal formalities necessary for the transfer of property ownership. It is a structured process, strictly regulated by real estate legislation that varies across different jurisdictions.
In the UAE, a region known for its dynamic real estate market and its appeal to international investors, staying abreast of the latest legal developments is imperative.
As the Government of the UAE continues to refine and update its real estate laws, we strongly emphasize to our clients the importance of engaging expert lawyers. This crucial step ensures that their real estate investments remain compliant with evolving regulations and are safeguarded against any legal uncertainties. Given the dynamic nature of the real estate market, it is increasingly vital for investors to rely on professional legal guidance to effectively protect their interests.
Why is Conveyancing Often Overlooked by Real Estate Investors?
Our extensive experience in handling real estate disputes over the last two decades reveals that investors frequently disregard conveyancing due to several factors:
- Cost: Although the fees associated with conveyancing are considerably lower than potential litigation costs, they are still seen as a significant expense.
- Time: The process can be lengthy, deterring investors who are eager to close transactions swiftly, again only a fraction of the time spent in litigation.
- Perception: There is a common reluctance to seek legal assistance until it becomes absolutely necessary, often when disputes arise that lead to financial losses.
The Role of a Conveyancer in the UAE
A conveyancer oversees the settlement process, a critical and complex aspect of property transactions.
Many home buyers and sellers, often first-time investors, are often unaware of the extensive amount of documentation, detailed attention, and meticulous effort required to legally transfer ownership of a property to a new owner.
Our role is to manage these elements on your behalf seamlessly, ensuring all legal requirements are met efficiently and accurately.
Our comprehensive services include:
- Contract / Terms Negotiation: Providing step-by-step guidance and legal advice throughout the buying or selling process.
- Legal Drafting and Reviewing: Drafting, clarifying, and reviewing legal documents such as Reservation / Booking forms, special Power of Attorney’s (PoA’s), Sales and Purchase Agreements (SPA), or Memoranda of Understanding (MOU).
- Due Diligence: Verifying legal property documents, example certificate of title.
- Transaction Estimate / Cost: Calculating all relevant, sometimes not even anticipated, costs and taxes associated with the end-to-end transaction. Among some are the cost associated with Initial Deposit, Government Fees to DLD and RERA, Service Fees, Agency Fees, all relevant Mortgage fees applicable by DLD and in case the transaction is not cash based.
- Mortgage Considerations: Coordinating with banks for mortgages and liaising with the developers or the management firms for necessary approvals.
- Legal Representation: Legally representing the client’s interests in dealings with various institutions and individuals.
Expected Timeframe for Conveyancing in the UAE
From our professional expertise the duration of the conveyancing process depends on several factors:
- Property Mortgage Status: If the property has been mortgaged or the buyer is intending to use mortgage, this can extend the process.
- Nature of Parties: The process duration may vary based on whether the Seller and Buyer are individuals or corporate entities.
- Presence of Parties: Availability of both parties to actively participate in the process; absence may require Power of Attorney (POA).
- Residency Status: Non-residents or parties outside the country can face delays, especially if there is no POA arranged.
- Financial Arrangements: Issues such as arranging for a bank account to issue or receive a manager’s check can affect the timeline.
- Outstanding Payments: Delays can occur if there are unresolved payments to developers or facilities management.
- Property Inspections: Discoveries during inspection stages may require additional time to address issues found..
Typically, we estimate the process to take anywhere from 1 to 8 weeks, taking into consideration the above points.
Freehold vs. Leasehold Ownership
Understanding the distinction between freehold and leasehold is crucial before purchasing property in Dubai. Leasehold ownership grants rights for a defined period, up to 99 years, while freehold ownership gives the buyer full control over the property and land, allowing them to sell, rent, or utilize it indefinitely.
Budgeting for Conveyancing Services
Conveyancing costs vary based on several factors:
- Legal/Professional Fees: These are the fees charged by the lawyer handling the transaction.
- Disbursements: These are fees paid to third parties involved in the transaction such as Brokers, Government entities, Banks, Developers, Management Companies for document acquisition and processing.
Who Pays Conveyancing Fees?
Each party—both the buyer and the seller—is responsible for their own conveyancing fees should they choose to hire a professional. We strongly advise our clients to engage conveyancing services to streamline the transfer of property and the registration of the new title deed, both in terms of time and transaction efficiency.
Conclusion
While conveyancing might seem daunting due to its cost and complexity, it is a vital process that safeguards the interests of both buyers and sellers by ensuring the legality and security of the property transaction. Prospective property owners, particularly in a dynamic market like the UAE, are highly recommended to engage with legal professionals, conveyancers, to navigate the legal intricacies in real estate transactions, ensuring a smoother and legally secure property ownership transfer.
How Motei and Associates can be of Assistance?
With over 20 years of experience in real estate legal assistance, Motei and Associates offers comprehensive conveyancing services for property transactions across the UAE.
We prioritize clear communication and strict adherence to local Real Estate Laws, ensuring your interests are fully safeguarded throughout the property transfer process.
Contact us today to discover how we can assist in securing and facilitating your real estate transactions, ensuring a smooth and legally sound experience.
