Investors Protection Laws
“Off–plan” or under construction developments in Dubai should be registered with RERA. The payments will be made to an escrow account managed by RERA to ensure that all the funds collected are only used for the project’s development.
Buying a property from a developer:
Buyers have to issue a check with the downpayment, admin fees and registration cost (normally 4%).
Buyers will need to sign a reservation form with a copy of their passport. The reservation form summarizes the basic terms and conditions of the sales agreement, the details of the payment plan, and the buyer and the Developer’s / seller’s details.
Buyers will have to sign a Sales & Purchase Agreement that entails the completion date and the compensation awarded if the property is not completed by that time period. Furthermore, if the property is to be furnished, ensure the details of the furniture package are attached with the sales agreement. Developers will obtain Oqoodi for the Buyer (pre-registration issued By DLD) When the property is completed, the Developer will notify the buyer with the handover date when the buyer will snag the property and give any feedback / comments before taking the handover.
The buyer will get the unit handover after connecting the DEWA / utilities under his name and after paying annual service charges.
Dubai Land Department will issue the title deed in the buyer’s name after handover and the full amount of the property is paid.
In case of finance buyers, The title deed is issued & kept by the bank, and the buyer will have a copy.
When the mortgage is paid in full, a letter of release and a NOC is given by the Bank and the buyer gets a new title deed under his name issued by DLD.