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NOC for Gifting A Real Estate Property

Documentation is a crucial consideration when purchasing a house. The No Objection Certificate is just as significant as the Commencement Certificate, Sale Agreement, and Title Deed. A real estate developer is more interested in this document, which is more widely known as a NOC, than a buyer. However, because the NOC attests to the fact that the subject property is free of legal difficulties, it is essential to understand it as much as possible.

The legal papers known as NOCs, or no-objection certificates, may be needed to finish several operations. The importance of NOCs is significant when it comes to real estate transactions. Builders required NOCs to start a real estate project; sellers may also need NOCs to sell their Property, and purchasers may need specific NOCs to complete their transactions. Consequently, everyone involved in selling or purchasing real estate must have a solid grasp of this critical agreement.

A gift transfer is what, exactly?

A gift transfer in the Emirate of Dubai is a property transfer between first-degree relatives. Parents and children, as well as husband and wife, are first-degree relatives who are eligible to transmit the property as a gift. The land department has recently changed the norms and regulations, so any gift transfers between siblings are no longer allowed. The standard transfer fee of 4% that is due to the land department at the time of transfer does not apply to a property transfer that is recognized as a gift transfer. However, a small transfer charge of 0.125% is due at the time of the transfer. This significantly decreased charge enables a free transfer of property between first degree relatives without them having to take the financial consequences into account. 

you may want to know: Gifting property in Dubai: everything you must know

What is the gifting procedure?

In the Emirate of Dubai, the following steps must be taken in order to gift a property:

  1. Owner must pay AED 4,020 to the land department in order to acquire an evaluation report on the value of the property.
  2. From the building’s developer, the owner should request a No Objection Certificate (NOC).
  3. The formal paperwork must be issued in the donee’s and owner’s respective home countries in order to prove the parties’ first-degree connection. A birth certificate, for instance, will be needed to be provided as proof of a connection, such as when the owner is the donee’s father or mother. Before being submitted to the UAE Ministry of Foreign Affairs, such documents must be legalized and notarized in their native country. A translation into Arabic and a Ministry of Justice stamp are also necessary for the document.
  4. It is possible to transfer the property by going to the Trustee offices after you have the originals of the aforementioned paperwork in your possession.

What is a NOC for gifting a real estate property?

A no-objection certificate, or NOC, is a legal document that may be given by a person or an organization that states that there are no objections to the points stated in the document. Before starting building or substantial repairs on a property, a holder must complete and register this in the public records.

When purchasing a property in the UAE, the developer often needs a no-objection certificate (NOC). It provides a clear title to the property and documents any service modifications and paid utilities. In the purchase scenario, a NOC indicates that the developer has no objections to someone else buying the Property. 

You should know: Property gifting to a company in Dubai

Importance of NOC for gifting a real estate property

A legal document produced by a company or person that states that there are no objections to the points stated in the document are known as a “No Objection Certificate,” or NOC for short. When buying real estate in the UAE, a developer’s NOC is often needed to prove clear title to the Property and demonstrate that all utilities and service charges have been paid. According to the NOC, the developer has no issues with someone else purchasing the Property in this situation. A No Objection Certificate, or NOC, is a legal document recognized in the UAE. However, it is often referred to in many nations, including the UAE, by its abbreviation NOC.

This kind of legal document may often be issued by a business or a person for one principal purpose. Its primary goal is to inform the reader that there are no disagreements with the document’s arguments. However, it is merely a prerequisite to be met when buying a home in the UAE.

In such an instance, the developer must use the NOC to provide a clear title to the bought Property. Additionally, it will enable them to demonstrate that all utility bills and service adjustments have been paid. In other words, it indicates that the developer has no objections to another person purchasing the Property.

For more information relating to NOC for gifting a real estate property, don’t hesitate to contact HHS lawyers in Dubai. 

Hazem Darwish

Hazem Darwish, is a Senior Partner of HHS Lawyers in UAE. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. Hazem Darwish also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators.