Formal requirements for acquisition of ownership of the UAE properties
If a party is unable to appear in person, they may designate a substitute by utilizing a POA (power of attorney) that was either signed in Dubai in front of a notary public or that was executed abroad and certified and legalized to be used in the UAE.
The participants must sign all pertinent DLD papers, such as Form F, which contains information on the transfer of real estate, including information about the parties, the property, and the property broker handling the transaction. Manager’s checks are frequently used to cover the purchase price as well as the costs associated with transferring ownership.
The DLD may demand additional paperwork depending on the specifics of the transaction. A “no-objection certificate” from the expert developer is necessary for the transfer of real estate inside a master community.
This certificate will only be given if the seller has paid all service or society charges in full but if there are no outstanding problems, such as a violation of community rules and regulations. No-objection certifications from the DEWA-Dubai Electricity and Water Body, the applicable telecommunications authority, and the Roads and Transport Authority are likely to be required if the real estate being conveyed is a block of land that will be developed.
The transfer application is handled after presence at the Dubai Land Department or indeed a trustee office. This might be finished immediately or over the course of a few days.
After everything is finished, the DLD will simply issue title certificate in the buyer’s name. The original title deed will be sent to the mortgagee by the DLD if the buyer has authorized a mortgage on the property.
Fees for Registration
When ownership is transferred or long leases are granted, the DLD stipulates that fees must be paid. Unless otherwise negotiated, the law in each situation mandates that such fees be shared equally between the seller and the buyer (or landlord and the renter). It is accepted practice in the industry that the buyer will cover all fees.
A sale and buy transaction’s registration costs are equal to 4% of the property’s value. The DLD has the right to estimate the market value of an asset is being transferred itself and to assess transfer fees based on that value if it decides that the purchase and sales agreement does not adequately represent that value.
A charge of 4percent of the entire lease value (determined as the entire rent to be collected over the course of the tenancy) is charged for the filing of the granting of a long term lease or the award of a musataha.
If the property is the subject of a mortgage, the DLD will levy a registration fee equal to 0.25 percent of the loan amount plus a small “knowledge fee.” The lender covers this.