Essential Documents used in real estate when buying property in Dubai

Documents used in real estate when buying property in Dubai

The case of Dubai with its amazing skyscrapers, and stunning houses of the rich and high-flying economy has always been the eye-catcher of property investors of different origins, just the same, from everywhere around the globe. Whether you are a first-time buyer or a seasoned investor, getting acquainted with numerous documents that carry you through the buying process of ownership in Dubai is inevitable. These documents are the main tools required to make sure that the whole process is through legally, easy, and cannot stop in the middle. Here's a comprehensive guide to the essential Documents used in real estate when buying property in Dubai:

• Title Deed:

The Title Deed is an essential legal document that stands as evidence of possession and complete ownership of a property. It is known for its exhaustive data about the property, covering its location, boundaries as well as any restrictions or limitations. As the title to the property is transferred from the seller to the buyer, the Title Deed becomes the legal evidence of the ownership transfer.

• Oqood:

'Oqood' is a UAE-centric real estate trading concept, especially in off-plan purchases. It performs as the first agreement signed between the buyer and developer, which provides information on the terms and conditions of the sale, including installments and completion dates. In essence, the deal provides a reservation contract to the parties involved and fulfills their interests in the transaction. Oqood provides an initial contractual framework for off-plan properties during the pre-construction phase, providing the necessary transparency and legal compliance with the authorities in the UAE.

• Sale and Purchase Agreement (SPA):

The Sale and Purchase Agreement is a legally binding contract on which the buyer and seller of the property are obliged to meet both the terms and conditions of the sale. It also has components that are the purchase price, the payment routine, the description of the property, and any other terms that were agreed upon. Both parties have to read carefully and exchange the SPA that has been signed before the transaction can continue to take place.

• No Objection Certificate (NOC):

While, if the property is located in a planned development or under a mortgage, the downloading of the No Objection Certificate from the developer/financial institute, which holds the mortgage is needed. This certificate is legal proof that there are no blocking items to the sale of the property with any dues, if any, met and settled.

• Identification Documents:

Both parties as the buyer and seller have to present valid legal documentation, for example, the passport and Emirates ID, to confirm their identity and the fulfilling of the legal condition. Besides, non-residents who would like to buy any property in Dubai will need a visa or any other relevant papers.

• Mortgage Documents (if applicable):

There could be further paperwork connected with the mortgage documents if the buyer takes out another mortgage to finance the acquisition. In most cases, this is accomplished through mortgage agreements, deeds of trust, and other conditions which delineate the terms of a loan.

• Power of Attorney (POA):

When the buyer or the seller is not able to be part of the transaction due to some reason, the Power of Attorney is used as a representative to perform the transaction in their place. In this proxy, the power of attorney vests in the assigned person to sign documents and do the transfer on behalf of the originating entity.

• Clearance Certificates:

Before official transfer can be effected, the seller must seek clearance certificates from utility providers, homeowners' associations as well as authorities governing both local and national affairs clarifying that all outstanding bills and fees related to the property have been settled in full.

• Community Rules and Regulations:

If a property is situated in a raided community or a homeowners' association, buyers should be reminded and deeply understand the association's rules and regulations. These documents specify the regulations regarding property use, whether private or shared, as well as maintaining these areas of living and communal spaces.

• Transfer Forms and Fees:

The parties must complete the purchase and sale process by the transfer procedures required by the Dubai Land Department and pay the corresponding consideration fee. Among them are application forms for property transfer, with the fee and all the taxes included. By providing these details accurate, and timely fee payment, the processing process can be done properly, without any delays.

• Trustee Documents (For Off-plan Properties):

Aside from the usual requirements when purchasing off-plan properties, buyers might also be asked to forego some documents (e. g. Trustee Agreement, issued by the developer) to make sure those investments are secured. This deed summarizes the trust’s terms and conditions and all the buyer’s rights before during and after the construction period.