Buying in a new house may be both exciting and frightening. One of the most important things to consider now that your property is ready to produce yield is the property handover.
There are several rules regarding property handover in Dubai that all property buyers, especially first-time buyers, must be aware of. Let’s take a look at the processes a buyer must do before receiving a home in the Emirate.
PROPERTY HANDOVER PROCESS IN DUBAI, STEP BY STEP
At property handover, a buyer should exercise caution to verify that the property is in excellent shape and meets the user criteria in the agreement. A buyer can prevent any legal or financial issues down the road by being diligent during the property handover process in Dubai. This step-by-step Dubai property handover checklist can assist a buyer in simplifying the procedure.
NOTICE OF COMPLETION
Receiving a completion notification is the first stage in the property handover process in Dubai. The developer receives the alert after completing the following steps:
- The developer notifies the buyer and the Dubai Land Department – DLD of the project’s completion.
- Following that, DLD sends the developer a completion notice noting that the buyer has 30 days from the notice issuance date to complete the property handover requirements.
- The Property Index Number – PIN – is displayed on the completion notification and is required for registration on Ejari and utility applications.
- The notification is forwarded to the buyer by the developer. If a buyer does not get the completion notice, they should contact the DLD immediately. Failing to meet the handover criteria within 30 days may result in consequences.
A building completion notification does not signify that the Dubai property transfer is complete. The handover procedure is considered complete once the developer has resolved all outstanding snagging issues and secured an occupancy permit from the Dubai Municipality.
PROPERTY SNAGGING OR PROPERTY INSPECTION
The property inspection or snagging is the next phase in the property handover procedure in Dubai. A property inspection is a visual examination of a property. This helps in the discovery of any underlying issues with a property.
Property inspection in Dubai is a buyer’s right before buying a home. The buyer should take advantage of it because it is their last chance to identify any safety dangers or structural issues with the home.
The identified problems must be appropriately listed during the inspection process. Provide this list to the developer after thoroughly inspecting the property. The developer will then be given a certain amount of time to resolve these concerns. After that, the buyer must get from the developer a “defects list” explaining all issues in the property and how they will be corrected.
A property inspection in Dubai may take longer than the customary two or more hours, depending on the size of the property. One of the most typical home-buying mistakes is failing to get a house examined before buying it. This might result in a buyer incurring financial losses in the future. If you are a first-time home buyer in Dubai, you can have the examination performed by experienced property inspectors.
NOTICE OF PROPERTY HANDOVER
The buyer receives a property handover notification from the developer once the contractor has finished the repair procedure of the issues indicated by the buyer. This notification tells the buyer that a meeting with the developer’s team is required to complete the property handover procedure in Dubai and take ownership of the property.
THE FINAL PAYMENT
In addition to the completion notification, the buyer should get a handover pack. This is one of the final steps in the Dubai property handover checklist. The property handover bundle provides details about the developer’s account statement. This handover bundle details any outstanding amounts on the buyer’s account.
It is critical to read this statement completely since the buyer may be required to make a final payment on the day of the transfer. If the buyer has any reservations about the statement, they must address them with the developer ahead of time. The following fees are commonly included in outstanding expenses.
Any unpaid final dues must be deducted from the total property price mentioned in the contract by the buyer. The buyer must also pay any fees imposed for late payments made during this period.
The final payment is usually given in two installments. The first payment is required when the buyer signs the contract, and the second instalment is due on or before delivery.
Certain fees must be paid by the buyer before the property is handed over in Dubai. These are some examples:
Oqood is a Dubai-based internet marketplace for off-plan property management. The DLD collects the Oqood charge, which is typically 4% of the original property price.
Costs for Issuing Title Deeds
The DLD requires property buyers to pay the title deed issuing cost of AED 250. They must also pay AED 20 in fees for innovation and knowledge.
Charges for Services
A property service charge in Dubai covers the costs of managing, maintaining, running, and repairing a property. Property service costs in Dubai are calculated on a per-square-foot basis. These service costs may be calculated using the DLD website or the Dubai REST App.
Fees for Administration
The administrative costs are paid to the developer just once. Although not all, the vast majority of real estate developers impose a buyer’s administration fee. This covers the cost of the documents required for the property transfer.
Costs for Utilities Registration
The Dubai Electricity and Water Authority is the city’s official electricity and water supplier (DEWA). Activating the water and power utilities should be on your first-time home-buying checklist when moving into a new residence in Dubai. This is possible through your DEWA account. Utility activation fees include
- AED 10 is the registration cost.
- Knowledge fee of AED 10
- AED 10 is the innovation charge.
- Small electricity and water meters for AED 100
- AED 300: Large water and electricity meters
- If applicable, VAT
PROPERTY OWNERSHIP TRANSFER
The Dubai Land Department (DLD) oversees the property transfer procedure in Dubai. The final handover occurs following the buyer’s pleasure and approval.
The buyer provides the relevant documentation and pays the property transfer charges at the Customer Happiness Centre (Main Office) in Dubai to transfer property ownership. Once the procedure is done, the title deed and map are emailed to the customer.
We have now completed the property handover process in Dubai. A buyer must fulfill the aforementioned processes prior to the final property transfer. If you are a first-time home buyer in Dubai, you can always seek assistance by hiring a real estate agent to help you with the process.