Finally obtaining a desired real estate property in Dubai is called a handover process. In this case, the property ownership is transferred from the developer to the customer. This property handover is fast and straightforward, ensuring investors’ maximum comfort and security. However, there are also some stages and nuances of the process to know about. The below handover checklist will be helpful in this case.
Property Handover Process: From Start to Completion
The transfer of Dubai property requires passing some basic steps. Before we start reviewing them in detail, it is good to note that sufficient preparation matters.
When buying property in Dubai, make sure you check your developer before you sign a memorandum of understanding. Use an escrow account to secure your funds, especially an advance payment applicable for the off-plan properties. Funds will be transferred from there gradually, including the final part when the official acceptance of the real estate object is deemed to be completed. This preparation will also help you to prevent wasting your money if there are any property defects.
Notification of Completion
The developer launches this stage by notifying the Dubai Land Department (DLD) – which is a real estate regulatory agency in Dubai – and a buyer about the project’s development completion. If all of the requirements are met, the DLD issues a completion notice to the developer. This notice of Dubai Land Department envisages that a buyer has 30 days from the notice date to complete the property handover. This is a standard handover timeline. However, it may take longer if the property is mortgaged.
The DLD will also issue a title deed, by the way. All of these transactions must be registered within the DLD. It is also in charge of the land registration.
The said completion notice from the Dubai Land Department also contains the Property Index Number (PIN). It is essential for the registration of Ejari and utility connections.
Another seller’s responsibility is to notify the property owner regarding the completion of the project. If the developer fails to meet this requirement, the buyer is entitled to contact the Dubai Land Department immediately.
If you lack information regarding the process, visit the Dubai Land Department’s website. As an alternative, you can assign a local real estate agent. There are many reliable real estate brokers in the local real estate market. Still, make sure you always sign the contract to represent and protect your interests.
Property Inspection
Inspection of the object is an essential element of any property purchase. It allows a buyer to conduct a thorough property walkthrough and highlight possible defects. If you notice such defects or any other issues, you should list and send them to your developer in writing.
Any property sale in Dubai proceeds only when the buyer settles the issues related to defects in full. The developer is usually given a concrete period to handle these matters. Once such problems are corrected, a buyer has to complete a final inspection.
Property Handover Notice
Once the developer completes all of the pre-negotiated works and the buyer accepts them, the developer issues a handover notice. This means the completion of the inspection and settlement process. Afterward, you can easily schedule a meeting with the representatives of your developer to take the keys to your apartment in Dubai and complete the property transfer. Typically, the payment of the property value in AED is made automatically from your escrow account.
Along with your completion notice, you will also obtain from the developer the information about any outstanding payments according to the terms and conditions of your sale contract for a chosen Dubai real estate. The most popular ones are apartments, in the developing areas in Dubai, such as Dubai Marina, Downtown Dubai, Jumeirah Village Triangle, and Jumeirah Village Circle. Acquiring the apartments – freehold properties, to be clear, in the zones where foreigners can buy property – is much more beneficial than buying a house in Dubai, given the low maintenance costs for an apartment.
Arrangement of Utility Connections
Once you buy a property in Dubai, it is also essential to ensure the transfer of all of the utilities needed. These are primarily electricity, gas, and water. This step is crucial that the chosen property is ready for use. You need to sign a maintenance contract to arrange each of these utility services. In addition, you will have to join the respective owner association.
Final Property Registration
Ownership of a property is deemed to be transferred once it is registered by the competent authority. The Dubai Land Department seeks the following documents for this purpose:
- Signed initial contract by both parties, determining the real estate value in AED
- No-Objection certificate
- Title Deed or Oqood (for off-plan properties)
- Completion certificate
- Utility forms
- Passport copies of the new owners
What Are Registration Fees?
When you buy a property in Dubai, you have to pay the 4% transfer fee when the completed transfer is registered with the land department, unless you negotiate other terms with your developers in Dubai. Hiring a local attorney will help to ensure a smooth transition of property ownership in Dubai.
What Is the Defect Liability Period?
Even if you have checked the property before getting your title deed, your real estate investment is always secured during the defect liability period. During this timespan, the developer remains liable for any possible defects that will be revealed during this time. Typically, this is a period of six to twelve months after the handover date. Correcting any deficiencies revealed during this period remains among the developer’s responsibilities.
What if You Have a Mortgage?
For all of the financed and mortgaged property, you have to obtain a mortgage pre-approval. This is made before the property registration and title deed in Dubai.
Bottom Line
If you want to home in Dubai, the best way to realize your dream is to purchase an apartment in one of the developing districts. This will not only provide you an opportunity to enjoy a superior local lifestyle. Buying a new property in Dubai is also consistently associated with numerous opportunities of getting high rental yields in the short-term perspective already.
The process of buying property in this area is easy, ensuring sufficient protection for buyers, whether they are locals or expats. At this point, it is still important to note that foreigners, unfortunately, are not allowed to buy apartments anywhere in Dubai. They are allowed to bpurchaseproperty in areas designated for foreigners called the freehold zones. However, this restriction never sacrifices the quality of real estate objects and the overall profitability of investment in Dubai. All real estate transactions are registered in the Dubai Land Department. Once the registration is done, you can get a certificate with your name as the new owner. This investment is worthy and will increase its value in the long-term perspective, especially in the developing areas! Take your opportunity without hesitation!