Key Insights for a Smooth Property Handover in Dubai: Procedure, Fees, and More

Acquiring a property, whether it’s your first or not, marks a significant milestone in life. It’s an exciting yet overwhelming endeavor. But fret not, we’ve got you covered. The property handover process in Dubai encompasses several steps and procedures to ensure a seamless transition of ownership and possession from the Developer or Seller to the Buyer. This entails completing legal documentation, conducting inspections, and verifying the property’s excellent living condition. Here’s an overview of the process for your convenience.

1. Sales Agreement: The process typically commences upon signing a sales agreement with the developer or seller. This agreement delineates the terms and conditions of the property sale, encompassing the purchase price, payment schedule, and pertinent particulars.
2. Payment Plan: To fulfill your obligations under the sales agreement, it is necessary to adhere to the agreed-upon payment plan. Typically, this entails making a series of installments leading up to the property handover, as specified in the terms of the agreement.
3. Mortgage Approval (if applicable): To finance your purchase with a mortgage, you must obtain mortgage approval from a bank or financial institution. This entails submitting the necessary documentation and undergoing the bank’s approval process.
4. No Objection Certificate (NOC): Prior to transferring the property to your name, it is necessary for the developer or seller to acquire a No Objection Certificate (NOC) from the Dubai Land Department (DLD). This certificate serves as confirmation that there are no pending dues or concerns associated with the property.
5. Transfer of Ownership: After obtaining the NOC, both the developer/seller and the buyer must visit the DLD to complete the transfer of ownership. Make sure to bring the necessary documents like your Emirates ID or passport, the original sales agreement, and the NOC. The DLD will handle the transfer and update the property records accordingly. It’s crucial to adhere to the developer’s timeline to prevent any penalties or delays during the ownership transfer process.
6. Payment of Fees: As part of the property transfer process, there are several fees that you’ll need to cover. These include the Dubai Land Department transfer fee, property registration fee, as well as any outstanding service charges or maintenance fees. Rest assured, we’ll guide you through every step to ensure a seamless experience.

Fees associated with the transfer:

1. Oqood: Oqood refers to the pre-registration of a property with the Dubai Land Department (DLD), an essential requirement for all off-plan property sales. A fee of AED 1040 is applicable, encompassing administrative and knowledge fees.
2. Registration fees: To complete the property registration process, owners are required to pay a registration fee equivalent to 4% of the purchase price. Additionally, there is a fee of AED 580 for the issuance of the title deed.
3. Service charges: In a residential building, the responsibility of service charges falls on all property owners. These charges are allocated towards the upkeep and maintenance of the amenities and facilities within the building. Regulated by RERA, the charges are calculated based on the total area of the property. It is necessary to pay these charges in advance on a quarterly basis.
4. Administration fees: Some developers may charge an administrative fee to cover the costs of property ownership transfer documentation. This fee typically ranges from AED 500 to AED 1000, but may vary. Please note that not all developers impose this fee.
5. Utility registration fees: Prior to transferring property ownership, it is necessary to register utilities with DEWA (costing AED 2,110, with AED 2000 refundable) as well as the district cooling provider. Proof of payment is mandatory to finalize the handover process.
6. Title Deed Issuance: After the transfer is completed, the DLD will issue a new title deed in your name as the property owner. This is a crucial document that proves your ownership of the property.
7. Handover from Developer: When buying a newly constructed property from a developer, you can expect to go through a handover process. This phase involves receiving the keys to the property, finalizing any remaining construction work, and resolving any outstanding issues or defects. The developer will ensure a smooth transition, allowing you to settle into your new home effortlessly.
8. Utilities and Services: You will need to transfer utility connections (such as electricity, water, and gas) to your name and ensure that you are responsible for ongoing service charges and maintenance fees.
9. Property Issuance: It is advisable to purchase property insurance to protect your investment and belongings.
10. Property Management: If your property is part of a development that offers shared facilities or services, it may be necessary to enlist the services of a property management company for continued maintenance and management.
11. Residence Visa (if applicable): If you are a foreign national seeking a residence visa in Dubai based on property ownership, you have the option to apply through the appropriate government authorities. Feel free to visit our Instagram page to determine if you qualify for the Golden Visa through real estate investment.

How PRO Consultancy POA can help you with Property Handover in Dubai?

Please be aware that the requirements and procedures may differ based on the property type, location, and regulatory updates. It is highly recommended that you collaborate with a proficient team, such as ours, to navigate through the process and ensure compliance with all legal obligations in Dubai. Kindly reach out to our consultants for further information.

Disclaimer: The information provided on this page is intended for general informational purposes only and should not be relied upon as legal advice or as a basis for making any specific actions or decisions. The content on this page does not establish a lawyer-client relationship, nor does it constitute the provision of legal advice or services for any particular matter. Users of this website are encouraged to consult with their own legal counsel to obtain specific legal advice pertaining to their individual legal issues.