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Title Deed and Title Conveyance Procedure

Title Deed and Title Conveyance Procedure in the UAE

It might be scary to purchase a house in Dubai for the first time. The process of buying a home may go more quickly if you have a conveyancing lawyer at your side to guide you through all the applicable laws. The importance of a Title deed in real estate transactions and the procedure required for Title Conveyance in the UAE will be covered in this Article.

What is Conveyance?

Conveyance is the act of giving possession of something to someone else. The word is often used in real estate transactions to transfer ownership of a plot of land, a building, or a residence. A conveyance is completed using a conveyance instrument, which might be a contract, lease, title, or deed.

What is a Title Deed?

A Title Deed is the sole document that serves as evidence of property ownership in Dubai. If you own the property outright, the title deed will be in your hands. The original Title Deed will be in the bank’s custody if you have a mortgage on the property, and the owner will get a duplicate of it. You may complete your DEWA, rent out your home, and register a tenant’s Ejari and telecoms using the Title Deed copy.

Leasehold Ownership Vs Freehold Ownership in the UAE

When you purchase a leasehold property, you essentially sign a long-term lease in which you agree to inhabit the property for a certain amount of time. Usually, 99 years, although it may be fewer in rare cases, is the length of the lease. The buyer only receives rights to the unit under this type of property ownership in Dubai, not the land upon which it is constructed. The bought property unit reverts to the freeholder’s possession after the conclusion of the lease term.

 On the other hand, when purchasing a property under Freehold ownership, the purchaser acquires complete, unrestricted ownership of both the building’s interior space and the property’s surrounding land. Following Dubai’s regulations governing property ownership, the Dubai Land Department will record the freehold purchaser’s name as the “landowner” in the registry and issue them a title document for the property. It is possible to use the freehold agreement forever. A person may inherit the property from the deceased owner. It means that the property will remain in the family. Along with expatriates, foreign residents residing abroad may purchase ready-to-move-in or off-the-plan real estate on a freehold basis in the approved zones. However, it’s essential to only purchase freehold homes from developers or real estate brokers who have received government approval.

Read More: Gifting property in Dubai: everything you must know

The Procedure Required for Title Conveyance in the UAE

  1. Signing of the memorandum of understanding

The buyer and seller must sign a Memorandum of Understanding before the title transfer procedure may start (MoU). It is a crucial procedure since the MoU specifies how the seller’s and buyer’s names appear on the deed certificate.

  1. Exercise adequate due diligence

Performing due diligence on the property’s title is an additional crucial step. It is used to verify ownership. In addition, it gives a complete legal description of the property, the developer’s and any mortgage holder’s information.

  1. Review the owner association regulations

Owners must abide by the laws and restrictions each community puts in place. The purchaser should next get in touch with the owners’ association and gather pertinent paperwork so that they may check it and make sure they are adhering to the guidelines.

  1. Payment of the required amount

The agent creates statements for the seller that contain calculations showing their net profits after the sale and advises the parties of the amount that must be given by either the buyer or seller to complete the transaction.

  1. Obtain Non- objection certificate

After the preceding phase is finished, it’s time to get no-objection certificates (NOC) from the parties involved. For this, money must be paid to the mortgage holder, the developer, the owners’ association, etc., who subsequently issue NOCs. Because it entails sending money to other parties, according to Aziz, this is a crucial phase in the whole process.

  1. Transfer of the title

It is time to transfer the title to the Dubai Land Department by paying the necessary fees and collecting the new title deed certificate for the buyer. When this stage is finished, a significant portion of the title conveyance procedure will have been completed.

  1. Transferring the keys

The seller receives the selling earnings, while other parties like real estate brokers get fees, and if any extra money remains, the buyer receives it. The escrow and title conveyance firm give the buyer the unit’s keys and access transponders.

Read more: How should you handle property handover delays in Dubai

  1. Make the deposit

The following phase is depositing cash or cheques, along with fees for the developer, owners’ association, and brokers. 

  1. Request a liability letter from the bank

Verify that the seller has not yet paid the mortgage lender (if there is one) any outstanding balance. It is advisable to ask the bank for a responsibility letter. The purchaser will then have a good understanding of any property liabilities. It’s crucial to check whether the developer has unpaid maintenance fees or fines.

  1. Dubai land department (DLD)

The costs associated with transferring a property from the seller to the buyer must now be determined by the Dubai Land Department. Determine if there is a price for removing liens as well. When a borrower breaches a contract, the mortgage lender has the legal authority to seize and sell the property, known as a lien.

How can a Conveyancing Lawyer Assist You?

Fortunately, rules protect buyers from contractual breaches regarding unethical developers and delayed completions. For instance, before advertising real estate in the media, developers and brokers must get approval from Dubai’s Real Estate Regulatory Authority (RERA). However, if you are purchasing off-plan, you must do your homework on the developer regardless of the legal safeguards. Your attorney can help you do this swiftly and efficiently. Before you pay the deposit or sign any contracts, your conveyancing lawyer will also verify the legitimacy of the title deed for finished homes as evidence of ownership. It gives you the peace of mind that there are no liens or other legal restrictions on the property.

Hassan Humaid Al Suwaidi., LL.B. is a Senior Partner in HHS Lawyers. He has 20 years of experience dealing with high-value and complex cases. Frequently featured in local and international legal directories and commended for his ability to attain favorable outcomes for clients, Hassan has been involved in some of the largest legal settlements. A major part of his work is providing expert legal advice on UAE legislation and acting for individuals and businesses during disputes and litigation. Read more