A Comprehensive Guide to Property Handover in Dubai

Congratulations! You have finally arrived at the point where the property you purchased in Dubai is complete. You can now sell it at a higher price to earn a high ROI, rent it out to generate a passive income, or move in to live comfortably.

However, before you can do any of this, you must complete the property handover in Dubai and snagging process. If this is your first time purchasing property in Dubai, this seemingly simple process can be quite daunting.

To assist you, we have provided a comprehensive guide to property handover in Dubai. Continue to read!

First-Time Property Transfer Guide Dubai home buyers

Receive completion notices

This is the first step in the property transfer process. When the building is finished, the developer will send you a completion notice. In most cases, it is sent to the buyer’s postal and email addresses, which they registered when they purchased the property.

The buyer must complete the handover formalities within 30 days, according to the developer. Otherwise, they may face repercussions.

The developer’s obligations or prerequisites are typically listed in the competition notice. Before taking possession of the new property in Dubai, the buyer must fulfill these obligations.

Property Snagging

A thorough physical inspection of your new home prior to moving in can save you a lot of trouble in the long run. It enables you to identify any flaws in the property and notify the developer, who will be responsible for fixing them before you take possession.

It is commonly referred to as property snagging. It’s not required, but it’s highly recommended. One of the most common real estate mistakes is failing to do so. You must complete it before signing the transfer papers. Doing it after the property has been handed over can be difficult. You may need to make several follow-up calls to the developer in order for them to resolve the prevalent issues.

If you do not perform snagging services within the specified time frame, you must waive your right to a property inspection. This entails accepting the newly property in Dubai for sale its current state. It will be your responsibility to take care of any remaining repair work.

If you are new in Dubai, you should think about hiring professional snagging services. They will be able to identify flaws that you may not be able to see because they have experience and expertise in inspecting houses in Dubai.

Notice of Property Transfer

Your developer will send you a property handover notice once the contractor has completed the repair/rectification process based on the list you provided. This letter informs the buyer that an appointment with the developer’s handover team is required to complete the proceedings and take possession of the property.

Clearance of Payments

The completion notice is accompanied by a handover package. It includes the buyer’s account statement or property completion details with the developer, which outlines how much the buyer has paid and how much is still owed before they can take possession.

In general, closing costs include:

The final installments

Depending on the contract’s terms and conditions, the buyer is required to clear any outstanding final dues from the total cost. Any penalties imposed on the buyer for late payments must also be resolved during this stage. Furthermore, if the buyer fails to make the final installments on time, they may face additional late payment penalties.

Oqood Charges

Oqood means “contract”. This is the method of pre-registering a property with DLD (Dubai Land Department). All off-plan sales are necessary by law to be registered with DLD. These registrations are recorded in the system. The buyer must pay an AED 1040 Oqood fee. This figure includes administrative and knowledge fees. Furthermore, a standard unit registration fee of 4% of the property purchase price is levied.

Fees for Registration

Property owners must pay registration fees of 4% of the purchase price, as well as a fee of AED 580 for title deed issuance. Failure to meet this payment obligation may result in a penalty.

Final handover

This step requires all property owners to be present or represented by a power of attorney to sign the property handover process. It occurs after the buyer is satisfied with the condition of the property and the payments have been cleared and acknowledged by the developer.

It is critical to bring the necessary original documents for the proceedings, such as a passport, utility receipts, sales and purchase agreements, payment receipts, and so on. After the buyer has signed the documents, the developer’s responsibility will be to prepare the necessary paperwork and provide them with key release forms, payment clearance certificates, access cards/keys, and so on.

 

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