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All You Need to Know About Property Conveyancing in Dubai

Property conveyancing refers to the legal process required to transfer ownership of a real estate property from one individual to another. As part of this process, there are certain responsibilities to be fulfilled on both the buyer’s and the seller’s end. It is crucial to have a thorough understanding of this procedure to ensure a seamless transfer of ownership.

Let’s explore the different steps involved in the process of property conveyancing in Dubai:

Conducting Due Diligence

Before finalizing the purchase, the buyer must conduct thorough due diligence from his end. As part of this, the status of ownership, existing mortgages (if any), and impediments (if any) must be verified. This can be done by obtaining a copy of the title deed of the property from the Dubai Land Department. A title deed is the key proof of property ownership, and it is highly recommended to thoroughly check it before proceeding further.

Obtaining NOC

The seller may be required to obtain a No Objection Certificate (NOC) from the property developer and/or other relevant authorities. An NOC signifies that the developer and the other authorities have no objection to the transfer of the property. Additionally, it also acts as a confirmation that the seller has no outstanding payments to be made to the developer and no pending obligations towards the property.

Preparation and Signing of Sale/Purchase Agreement

An agreement when reached between a buyer and seller, must be formalized by drafting a sale/purchase agreement. This document mentions the selling price of the property, payment schedule, date of ownership transfer, and any other terms and conditions as agreed upon by both parties. It will also state whether the property price will be paid upfront or through a mortgage. A sale/purchase agreement must be drafted in the format prescribed by the Dubai Land Department (DLD). By recording all key details of the transaction, and outlining the rights and obligations of both parties, a sale/purchase agreement significantly reduces the probability of misunderstandings or legal issues in the future. If both the buyer and seller agree to the terms spelled out in the agreement, they can proceed to signing it.

Payment of Security Deposit

Real estate transactions in Dubai often involve the payment of a security deposit. This serves as proof of intent on the buyer’s part and ensures a level of security for the seller that the buyer will complete the transaction.

Determining the Relevant Fee

Transferring the ownership of any property involves payment of certain fees including the agent’s commission, transfer fee, registration fee, service charges, and so on. These costs depend on the price of the property and must be duly paid.

Finalizing Ownership Transfer with the Dubai Land Department

On the day of transfer, it is necessary to be physically present along with the relevant documentation at the Dubai Land Department (DLD’s) office. The buyer must arrange the payments through manager cheques to the trustee. The new title deed is issued and the keys are handed in once the manager cheques are received by the seller.

If you cannot be physically present for whatsoever reason, you can authorize an individual to act on your behalf. As a seller, you can prepare a property power of attorney in the UAE to appoint an individual to represent you. On the other hand, buyers can make a general power of attorney to delegate authority to someone.

Legal Inz offers comprehensive services for the preparation of a UAE POA. Get in touch today, and receive all the assistance you need to have your power of attorney prepared in the shortest time frame.

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