The real estate environment in Dubai is all over the world in terms of its futuristic projects and policies to attract investors. Off-plan properties – properties that are bought prior to completion are among the most favored investment properties.
But the most frequent inquiries customers have is probably; Are there title deed on off-plan units?
This guide gives a good description of the process of establishing ownership, issuing title deeds as well as the legal safeguards that off-plan buyers enjoy according to Dubai land department (DLD) rules.
What Is a Title Deed in Dubai?
A title deed is a legal document provided by the Dubai Land Department (DLD) which is certifying that a particular person owns the property. It contains such central information as:
- Owner’s name and nationality
- Property type and size
- Registration number
- Details of location and land plot.
In the case of completed properties, it is provided as soon as the ownership has been transferred. In case of off-plan properties, though, the ownership is registered in a different manner till the project is finished.
Are There Title Deeds of Off Plan Property Units?
Summary: No, not until completion.
Whenever you buy an off-plan property, you are not given a title deed to the property since it is not established yet. In its place, you are provided with an Oqood Certificate, a provisional ownership certificate that is registered in the Dubai Land Department.
This Oqood serves as your ownership evidence in construction. It guarantees the registration of your investment that is traceable and legally accepted by the DLD.
The Oqood System and What It Means
Oqood system is a web based registering system that is operated by the Dubai land department. It guarantees protection and transparency of all the off-plan transactions.
How It Works:
- After the signature of Sales and Purchase Agreement (SPA), the developer registers the sale on Oqood.
- The buyer information is registered formally at DLD.
- A certificate of ownership is given to the buyer as evidence of ownership on the construction stage in the form of an Oqood certificate.
The Advantages of Oqood Registration Are as Follows:
- Guarantees protection against being sold twice or resold in ill faith.
- Fully supervises transactions by DLD.
- Brings about a seamless transfer to the ultimate title deed upon completion of project.
When Property Issued Off-Plan in Dubai – When Is the Title Deed Issued?
Issuance of title deed occurs after the project is completed and handed over.
After the developer gets a completion certificate on the part of the relevant authorities, the DLD gives the buyer the final title deed.
Typical Process:
- All payments are made by the buyer.
- Developer gives a No Objection Certificate (NOC).
- The house is registered in DLD under the name of the buyer.
- The title deed is given out within 30 days of verification and payment of fees.
Title Deed Charges in Dubai
In case of acquiring your title deed, the following charges will be applicable:
| Type of Fee | Approx. Value | This Description |
|---|---|---|
| DLD Transfer Fee | 4% of property value | Normally to share between the buyer and the seller. |
| Admin Fee | AED 580 | In the case of individual purchasers. |
| Trustee Office Fee | AED 4,000-5,000 | To be processed and registered. |
These title deed charges will see your ownership registered in the land registry of Dubai.
Off-Plan Property Title Deed Rules in Dubai
The Dubai Land Department (DLD) and RERA have established clear regulations governing title deeds of off-plan property to safeguard buyers and ensure transparency throughout the ownership process:
Final Title Deed Issuance:
The final title deed is issued only after project completion and formal approval by the Dubai Land Department (DLD).
Mandatory Oqood Registration:
All off-plan property sales must be registered by the developer through the Oqood system, which records ownership details until the final title deed is issued.
RERA-Approved Escrow Accounts:
Buyers’ payments must be deposited into a RERA-approved escrow account, ensuring funds are used solely for the project and protecting buyer investments.
Oqood Certificate Issuance:
Buyers are provided with an Oqood certificate as proof of ownership until the final title deeds of off plan property are prepared and registered.
Pre-Completion Off-Plan Property Title Transfer
Yes, you are allowed to sell or transfer your off plan before the completion, but with a condition.
Off-Plan Conditions of Resale:
- Approval of developers is needed.
- DLD approval would have to be received.
- Normally, it is 30-40 percent of the entire price before resale.
This is done to ensure that all the off-plan dealings are valid and verifiable.
Get further instruction in our complimentary guide:
How to sell off plan property in Dubai.
Registration of an Off-Plan Property at the Dubai Land Department
The following are the steps involved in registering your off-plan property with DLD:
- Enter into an agreement with the endorsed developer on Sales and Purchase Agreement (SPA).
- Make DLD registration fee (4%) payment within 60 days.
- The data gets uploaded to the Oqood system by the developer.
- Get DLD to issue your Oqood.
After the completion of the property, DLD will automatically update your record to grant you your title deed.
Documents Needed in Issuing Title Deeds
The DLD will require you to produce the following documents before issuing your title deed:
- Original Sales and purchase Agreement (SPA).
- Receipts of payment (100% proof of payment).
- No Objection Certificate (NOC) of developer.
- Originate Emirates ID or passport.
- Completion certificate.
On submission, the DLD verifies and gives the final deed of ownership title.
Evidence of Title Deed and Pre Possession
Your Oqood certificate will be used as a good demonstration of possession until your title deed is prepared.
You can use it to:
- Secure financing from banks.
- Sell off the property (with consent).
- Check the validity of your investment in DLD records.
The Importance of Learning About Title Deeds
Knowing the rules of title deed and ownership certificates can give you:
- Make sure that your property is legally secured.
- Discourage fraudulent activities.
- Get ready to be resold or financed easily.
The awareness of these processes will secure your investment in the long term in the dynamic off-plan market in Dubai.
FAQs
Do off-plan properties in Dubai have a title deed?
Not immediately. Buyers receive an Oqood certificate, and the title deed is issued after project completion.
When is the title deed issued for an off-plan property?
It’s issued once the project is complete, the handover is done, and payments are finalized.
Can I sell my off-plan property before getting the title deed?
Yes, but DLD and developer approvals are required, and you must have paid a set portion of the purchase price.
How do I register my off-plan property with the Dubai Land Department?
Your developer registers the property via Oqood once you sign the SPA and pay registration fees.
What documents are required to obtain a title deed in Dubai?
You’ll need your SPA, NOC, ID, payment receipts, and completion certificate.
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