Oqood in Dubai Real Estate: Everything You Need to Know

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Oqood in Dubai Real Estate: Everything You Need to Know

The Dubai real estate market’s notable expansion has attracted ongoing attention from foreign investors. The need for modern regulatory frameworks and effective procedural processes grows as the market gets more competitive. This is how the Oqood system works.

Oqood, a central piece of the city’s regulatory system, was set up to transition property transactions to a digital space, monitor them, and simplify them. Introduced by the Dubai Land Department (DLD), the system applies especially to under-construction properties.

Having a proper understanding of Oqood is particularly crucial for first-time buyers of property, as it can make registration a seamless process that complies with all the regulations in place in the Dubai real estate market.

What is Oqood and How Does it Affect Dubai's Real Estate Market?

Oqood, which translates to “contract” in Arabic, was developed to streamline the administration, entitlement, and sales of properties sold before completion because of Dubai’s real estate market’s rapid growth. The Dubai Land Department created the official web-based platform that this structure uses to function, and Emirates Real Estate Solutions (ERES) is in charge of it.

This platform’s introduction aimed to promote order and clarity, as well as to simplify the handling of property transactions prior to formal registration. The comprehensive record-keeping and governance of properties sold before completion make Oqood a reliable space for protecting the interests of both property developers and purchasers.

The role of the Oqood Portal

Oqood delivers a full spectrum of services within the Dubai real estate sector. This system is designed to facilitate the pre-registration of properties transacted during, or prior to, the completion phase. Furthermore, Oqood manages account operations, payment processing, and contractual obligations for various stakeholders, including developers, investors, and affiliated parties.

Through the Oqood user interface, account holders are able to track project progression and execute sales transactions efficiently. The system provides a reliable medium to ensure that registrations are in compliance with legal mandates.

Investors are afforded the security of knowing that their legal rights as purchasers are preserved and their investments are protected.

Additionally, it maintains a verifiable record of transactions and provides real-time monitoring of off-plan developments, thereby enhancing transparency and mitigating the potential for fraudulent activity. Oqood also extends support to legal authorities in matters concerning real estate within Dubai.

Key Features of the Oqood System

Online Registration Procedure

A completely online system, known as Oqood, manages off-plan property sales, providing users with quick and easy access. Property developers can log in without difficulty to record sales of properties that are still under construction. The Dubai Land Department then approves these registrations, and the system maintains comprehensive records of both properties and customers.

Efficient Management of Multiple Transactions.

This online system provides developers with the tools to effectively manage and market a wide range of off-plan properties, leading to improved control over large-scale developments. Furthermore, it lightens the burden of administrative responsibilities.

The Legal Framework Protecting Property Developers and Home Buyers

After buying a property before it’s built, the involved parties will have their ownership legally recorded on Oqood, which secures the buyer’s entitlements. Furthermore, Dubai’s property regulations safeguard both the builders and those purchasing, with confirmed transaction details. The Dubai Land Department carefully monitors the sales and development of these pre-construction properties.

Required Documentation for Developer Registration on Oqood.

To finalize and activate developer registration within the Oqood online platform, these documents are necessary:

    • Company trade license (copy)
    • Power of Attorney
    • A copy of a passport
    • Authorization Letter
    • Emirates ID or visa

Oqood Fees: An Overview of the Expenses

To obtain an Oqood certificate through Oqood registration—a mandatory requirement for buyers of properties under construction—specific payments must be made. These payments are not fixed amounts but are calculated as a percentage of the property’s total value.

    • Percentage: Generally, the charge is around 4% of the property’s overall selling price. The precise cost can fluctuate based on ongoing special offers or the kind of development.
    • Responsibility: Typically, the person purchasing the property is the one who pays this charge to the builders, and it’s included in the initial property expenses.
    • Payment Process: Frequently, the builders gather the Oqood charge and then send it to the Land Department when the property is officially recorded. Those buying should confirm the precise sum with the builders to guarantee all funds are handled safely.

How you can get Oqood Certificate

Securing an Oqood certificate is essential for officially recording the pre-registration of property sales before completion, and it safeguards the buyer’s ownership claims. A comprehensive explanation of the procedure follows.

Submit a Registration Request

    • Name of the Developer
    • Location of the Off-Plan Property
    • Size of the Off-Plan Property
    • Information about Ownership
    • Handover Time of the Project

Make the Oqood Fee Payment

To complete the Oqood certificate, the buyer pays the associated fees. The developer, on their end, determines the fee, collects it from the buyer, and then submits it to the Real Estate Registration Directorate at the Dubai Land Department. This step is essential for formally recording the property sale.

Issuance of the Oqood Certificate

Once the registration of off-plan property is verified and approved by the Dubai Land Department, the authority issues the Oqood Certificate. The document provides proof of ownership, marking the registration legal and giving buyers confidence in their purchase.

Important Sections of the Oqood Portal

Oqood offers a digital interface in Arabic and English. Furthermore, to improve application interaction and simplify use for all stakeholders and developers, it incorporates supplemental areas.

1. Properties

The online Oqood platform features a dedicated area for real-time property updates, showcasing new listings and their management. Users can utilize the property management tools for various applications.

    • Adjust or add new payment schedule options.
    • Modify or update the available unit count within current pre-construction projects.
    • Explore diverse real estate options, such as high-rise buildings and detached homes.
    • Update or refine the information regarding villa projects currently being built.
    • Seek approval from senior management for any property contract cancellations.

2. Properties

The ‘Participants’ Section catalogs all entities participating in off-plan property transactions, notably investors, development firms, and sales/purchase entities.

The ‘Participant Management Screen’ allows for the modification of this registry through additions or removals. To append a participant to the Oqood Portal, adhere to the following steps:

    • Select the ‘Participant Management’ option to initiate the process.
    • Input the name of the organization or individual.
    • Supply the current contact details of the owner or company; this is a required field.
    • A confirmation message will be dispatched to the participant upon successful completion and storage of the information.

3. No Objection Certificate (NOCs)

Because Dubai’s property market changes rapidly, properties bought off-plan are frequently sold again before they are finished. To do this legally, you must obtain a No Objection Certificate (NOC) from the primary developer and have it authorized by the Dubai Land Department.

The Oqood online system also provides a way to apply for this NOC, which is necessary to handle the legal aspects of transferring the property to a different buyer.

4. Processes

Within the Oqood portal, a distinct area, labeled “Procedures,” allows users to directly handle essential tasks. This section delivers verified contracts and official documents, which are created once the Dubai Land Department (DLD) has given its approval to a user’s requested action. The procedure module facilitates:

    • Cancellation of the Property
    • Approval of the Property
    • No Objection Certificate Procedures
    • Converting the lease properties to ownership
    • Details of Voucher
    • Modification of the Property
    • Browse Property Number, Name, and Type
    • Registration of Property for Mortgage Pre-approval

5. Management

Developers gain control over participant and company management through a dedicated administrative segment of the Oqood portal. This section facilitates the addition, management, revision, and removal of these entities. It’s important to note that the removal of a sub-user by a developer does not impede the sub-user’s continued access to their core account.

6. Agreements

Through the Oqood online system, a range of contractual agreements can be produced. To become valid, these contracts necessitate confirmation from the property’s proprietors and all pertinent parties involved in transactions concerning pre-construction real estate. Oqood provides various official confirmations such as:

    • Certificate for Initial Sales
    • Certificate for Mortgage
    • Certificate for Lease
    • Certificate for Dismortgage

6. Agreements

Through the Oqood online system, a range of contractual agreements can be produced. To become valid, these contracts necessitate confirmation from the property’s proprietors and all pertinent parties involved in transactions concerning pre-construction real estate. Oqood provides various official confirmations such as:

    • Certificate for Initial Sales
    • Certificate for Mortgage
    • Certificate for Lease
    • Certificate for Dismortgage

7. Vouchers

Applying for various services through the Oqood platform involves mandatory fees payable by the applicant. In most cases, the developer submits the request on the applicant’s behalf and furnishes them with the Oqood-issued payment document. This document could detail charges such as the Oqood registration fee.

Key Differences to Oqood And Title Deeds

Prospective first-time homeowners might mistakenly believe an Oqood is equivalent to a title deed; nevertheless, both are fundamental within Dubai’s real estate landscape. A clear understanding of their dissimilarities is necessary for buyers to mitigate future issues.

Each document possesses distinct features, and the Dubai real estate system provides a secure environment from the initial purchase of off-plan properties to the point of full ownership upon completion.

Oqood Certificate: Your Proof of Ownership Before Project Completion

When selling properties that are still being built, an Oqood certificate is a required document. This certificate confirms the purchaser’s agreement to buy the property that is currently under development.

Furthermore, this certificate verifies that the purchaser has finished the required registration steps as outlined by the Dubai Land Department (DLD), which offers protection until the official property ownership document, the title deed, is issued after the construction project is finished and delivered.

Final Attestation to Ownership: Title Deed

The issuance of a formal ownership certificate occurs subsequent to construction completion, coinciding with the property’s handover. This certification serves as legal proof of the owner’s absolute ownership of the purchased property or development. The successful attainment of this ownership certificate is contingent upon the full settlement of financial obligations and the conclusion of the handover protocols.

The Complete Process for Transferring an Oqood Certificate

When a buyer chooses to sell their property before the project is finished, Oqood provides a certificate for the subsequent buyer, but this entails several distinct phases.

    • Notify the Developer: To move the property title to the next owner, you’ll need to get a permission document from the building’s constructor.
    • Transfer Request to Dubai Land Department: Once you have the builder’s go-ahead, you’ll file for the ownership change with the Dubai Land Department, using their online system called Oqood.
    • Transference Fee: Oqood has set fees for various actions. You’ll need to pay the appropriate amount to finish the title transfer.
    • New Oqood Certificate: Once all legal steps are finalized, the Dubai Land Department will provide a new title certificate, showing the new owner’s name.
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