Property Transfer Procedure in Dubai
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Overview of Property Ownership Transfers in Dubai
Types of Property Ownership in Dubai
Freehold Ownership
A freehold structure grants full ownership of the property and the land on which it is built. The ownership is perpetual and can be leased, sold, or transferred to family members. Expats and foreigners can acquire properties only in designated freehold areas.
Leasehold Ownership
This structure offers leasehold rights through long-term agreements lasting 10 to 99 years. The lease agreement is subject to specific terms and conditions. The ownership is granted only for the property and not for the land. Both UAE citizens and foreign nationals can acquire leasehold properties.
Commonhold Ownership
This structure grants ownership of an individual unit (apartment) in a building. Further, the ownership is shared for common areas such as hallways, terrace, and amenities.
Joint Ownership
Individuals, families, and companies can acquire joint ownership of properties. Here, the ownership of a property is shared between two or more entities and the stakes are clearly defined.
Usufruct
This type of ownership structure grants you the right to use and benefit from a property owned by someone else for a specific period (typically up to 99 years). Individuals and companies can acquire properties, but they cannot undertake any structural changes.
Mustaha
This structure grants a buyer the right to use, develop, and construct on a plot of land owned by another party. The lease period usually ranges between 15 to 50 years. It is mostly used for commercial or industrial developments.
How to Transfer Property Ownership in Dubai - Procedure to Follow
Sign the Sale Agreement
Before transferring the property, the buyer and the seller have to sign a sale agreement (along with the United Form F). This provides a legal framework for both parties to avoid potential complications at a later stage
Undertake Property Valuation
Owners must undertake a valuation of the properties they intend to sell. A proper valuation helps to estimate the fair market value of the property and facilitates the buyer to secure a mortgage.
Receiving the Payment
After the property valuation is done, the buyer has to arrange the necessary funds. Those with ready cash can submit a bank cheque to the seller. If you are opting for bank financing, an approval letter, a liability letter, and clearance documents are essential. The buyer must regularly update the seller about this progress.
Obtaining the NOC
The owner is responsible for getting a No Objection Certificate for property transfer from the builder before selling the property. This confirms that the seller has paid all the charges to date, and the new owner is not held liable for past dues.
Request Ownership Transfer
The following process is essential to complete the transfer of ownership to the buyer:
- Visit the main office of the Customer Happiness Center in Dubai
- Submit all the documents required to effect the transfer of ownership of the property
- Pay the prescribed charges and receive the payment receipt
- The title deed of the property and the map will be sent via email
Documents Required for Property Transfer
A letter from the seller or transferor
The Emirates ID card of the owner
Power of Attorney (if the owner is not present)
Copies of respective passports of co-owners (for ex-pats)
A copy of the commercial license (for companies)
Costs and Fees for Transfer of Property Ownership
There is an additional cost for the transfer of property ownership in the UAE. The list of applicable charges in Dubai is given below:
Title Deed Charges: AED 250
Charges for a Unified Map With the Dubai Municipality: AED 325
Land Map Fee (for properties outside the Dubai Municipality Limits): AED 100
Apartment & Villa Map Charges: AED 250
Knowledge Fee: AED 10
Innovation Fee: AED 10
Note: The above charges are subject to change without prior notice. Please refer to the official website of Dubai Land Development (DLD) for the latest updates.
What is the Role of the Dubai Land Department (DLD) in Property Transfers?
The Dubai Land Department (DLD) plays a key role in facilitating property transfers in Dubai City. Some of its responsibilities include the following aspects:
Regulates Property Transactions: The DLD ensures that all property transactions comply with the government’s rules & regulations and validates the legality of such transactions.
Property Registration: The DLD registers the transfer of property in its records and provides legal recognition
Verification of Ownership: The DLD confirms the ownership of properties and ensures there are no liens or disputes on the same
Grant of Title Deeds: The DLD facilitates title deed transfer to the buyer and certifies the buyer’s ownership
Valuation of Properties: The DLD also undertakes valuation of properties to ensure fair pricing and transparency for the transactions
Collection of Fees and Taxes: The DLD is responsible for collecting transfer fees (a percentage of the property’s sale price) and other administrative charges related to the transaction
Mediation & Reconciliation: The DLD is also empowered to mediate and settle disputes between the parties to ensure smooth transactions
Frequently asked questions on Property Ownership Transfer
How long does the property transfer process take in Dubai?
The property ownership transfer process in Dubai can take an average of two to four weeks. The exact duration for property transfer depends on several factors such as the property type, documentation requirements, and financing arrangements.
Can property ownership be transferred between family members?
Yes. Properties can be transferred between family members subject to certain regulations. For instance, properties can be gifted only to first-degree relatives such as parents, children, or spouses.
Do I need a No Objection Certificate (NOC) for property transfer in Dubai?
Yes. The seller must obtain a No Objection Certificate (NOC) from the property’s builder or developer. This legal document ensures that there are no objections to the transaction and that there are no outstanding dues on the said property.
Is legal assistance necessary for property ownership transfer in Dubai?
Availing legal assistance from qualified professionals specializing in real estate laws can ensure a smooth transfer of ownership with minimal risks and full legal compliance.
What happens if the property has an existing mortgage during the transfer?
Transfer of mortgaged property to another person is possible subject to the terms & conditions of the mortgage agreement. In this situation, the new owner will take over the property with the existing mortgage and agree to the same terms and policies of the lender.
Can I transfer property ownership online in Dubai?
No. The Dubai real estate laws do not permit an online transfer of property ownership.
Are there specific fees for transferring off-plan properties in Dubai?
Yes. The specific fees associated with transferring off-plan properties in Dubai include the following:
- Transfer fee: This is payable to the DLD at 4% of the property’s market value or sale price, whichever is higher. It is usually split between the buyer and the seller.
- Oqood Fees: A fee of AED 4,000 is payable to the DLD to register an off-plan property
- Developer Fees: A few developers may charge a fixed administrative fee to process the sale transaction and issue the NOC
- Legal Fees: A fee of 0.5-1% of the property value may be payable to lawyers for legal assistance and consultation
- Real Estate Agent Fees: Brokers or agents may charge up to 2-3% of the property value for assisting the transaction
What is the property transfer tax in Dubai?
There is no tax on the transfer of properties in Dubai. However, a transfer fee of 4% of the property value is payable to the DLD. This is generally split equally between the buyer and the seller.
Is it worth owning a property in Dubai?
Yes. Buying a property in Dubai is a fantastic investment for the medium to long term. Dubai’s booming economy, stable polity, world-class infrastructure, investor-friendly climate, tax benefits, and relative affordability offer some great reasons to buy a property.
Where to transfer property in Dubai?
Both the buyer and seller must visit the Dubai Land Department (DLD) Project Registration Center in person to transfer the property.
What happens to the property if the owner dies in Dubai?
The legal heirs of the deceased property owner can get the property transferred to their names by following the inheritance procedure. A property owner can also draft a will to transfer the property as per his/her wish.
Can I get a visa if I own a property in Dubai?
Yes. Foreigners can purchase a property worth at least AED 750,000 in a freehold property zone of Dubai and apply for a 3-year residence visa. You can also obtain a 5-year residence visa if you buy a property with a minimum value of AED 2 million.
