Buying a tenanted Dubai apartment: what to check before signing

For a Dubai apartment offered with a tenant in place, check the existing lease, rent actually received and security deposit alongside the purchase price. Article 28 of Dubai Law No. 26 of 2007 says an ownership transfer does not affect the tenant’s right to continue occupying the property under a fixed-term lease signed with the previous owner.

First decide whether you want an income-producing rental or an apartment you can occupy soon. The same property may suit these two objectives differently. The checklist below is an original buyer’s worksheet for long-term residential tenancies; obtain an individual review of the transaction’s legal terms and applicable rules.

1. Ownership records: the current ownership document for the unit and the seller’s representative’s authority, if relevant. 2. Tenancy records: the full signed lease, every addendum and amendment, and the Ejari certificate. Compare unit identifiers and the parties across the documents.

3. Financial records: the payment schedule, evidence of receipts and outstanding balances. 4. Deposit and condition: the deposit amount, who holds it, the move-in condition record and open repairs. 5. Notices and disputes: renewal, variation or eviction notices, evidence of service and records of disputes material to the transaction.

This is a due-diligence package, not the official document list for registering a transfer. Record a missing document as an open question with a person responsible and a response date. Treat the seller’s statement, manager’s ledger and payment evidence as separate records, then reconcile them.

Compare the tenancy period, rent, unit details and parties in the Ejari certificate and signed lease. DLD’s guide says the certificate can be downloaded from its website using an Ejari contract number or through Dubai REST. Use documented contractual figures as your starting point rather than the rent advertised in a listing.

Confirm the post-transfer record-keeping steps with the appropriate service channel in advance. Do not assume the existing tenancy should be cancelled because the apartment is being sold. Establish the legal position, any required system updates and the new owner’s communication responsibilities separately.

Create a table showing each rental period, the amount due, cash actually received and the recipient. Identify prepaid amounts and instalments still unpaid separately. Do not automatically record a promise or scheduled payment as income already received.

In the sale agreement, establish how rent already received by the seller for future periods, outstanding receivables and the manager’s account will be settled. Do not treat a time-based calculation as an automatic legal entitlement: document the agreed settlement method and evidence of payment.

Illustrative assumptions: annual contractual rent is AED 120,000 and the seller has already received it in full. Exactly six months of the rental year remain at transfer. If the parties in this example agree on equal monthly apportionment, the amount allocated to the remaining period is 120,000 × 6 / 12 = AED 60,000.

The fictional AED 6,000 security deposit is a separate item; clarify its handover and eventual settlement rather than blending it into rent. Article 20 of Law No. 26 of 2007 provides for returning the deposit or its remaining balance at lease expiry. These figures are invented, not market rents, offers or guaranteed returns.

The final settlement may differ from this simple example because of the cut-off date, missing payments or contractual arrangements. Keep the calculation, parties’ agreement and evidence of the actual money transfer as separate worksheet entries.

Obtain the promised vacant-possession date and supporting documents. Article 25 as amended by Law No. 33 of 2008 provides at least twelve months’ notice for specified eviction grounds at lease expiry, including sale and own use subject to conditions. The notice must be served through a notary public or registered mail.

This is not a general permission to evict and does not automatically deliver an empty apartment on transfer day. For an existing notice, have its grounds, recipient, evidence of service, dates and application to this ownership transfer reviewed. Do not treat a listing’s vacant on transfer wording as an established fact.

If your move-in date matters, make legally established availability a condition of your decision. Obtain an individual review of the seller’s obligations and any agreement with the tenant. Assess the seller’s promise separately from the position enforceable against the tenant.

An offer is ready for further review when documents agree, the financial settlement can be checked and the existing tenancy fits your objective. Treat a missing addendum, inconsistent rent figure, unresolved deposit or unsupported vacancy promise as an open issue. Assign a person and next action to every unresolved point.

If you cannot confirm a required fact, do not fill the gap with an assumption. Request the missing evidence, revise the condition or choose another offer. Keep management charges, running costs and possible future vacancy as separate budget items even when the apartment is currently let.

Does an existing tenant guarantee income? No; the lease and payment history are facts to check, not guarantees of future receipts. Can a new owner definitely move in at expiry? Do not assume this without reviewing the legal and notice requirements. Does an Ejari certificate replace the full lease? Obtain both and the amendments for your review.

Can you review the offer from Hungary or elsewhere abroad? Obtain one coordinated document package, an itemised financial statement and an agreed on-site condition assessment. Name who reviews the legal terms, reconciles the finances and checks the unit. A video call is useful support but does not replace missing records or a site inspection.